On line services by EBL and SCB:

EASTERN BANK LTD

Various online banking services offered by EBL: EBL Internet banking application addresses the needs of small, individual and corporate account holders of the bank. This application provides a comprehensive range of banking services that enable the customer to meet most of their banking requirements over the Net. Account Operations and Inquiries Fund Transfers and Payments Utility Bill Payment Deposits Loans Inquiries and other services Session Summary

Account Operations and Inquiries:

Account Summary Account Details Float Inquiry Account Activity Cheque Book Request Stop Cheque Request Cheque Status Inquiry Statements download in ASCII format

Account Summary
The customer will be able to view the list of Current, Savings, Term Deposit and loan accounts held and the Current Balances in each account in the account currency and the customers preferred currency

Account Details
The customer can choose a particular account (Savings, Current account, Term Deposit or Loan account) and see the account details depending on the type of the account. The details show different balances (collected, uncollected, available etc) and information relating to interest and charges.

Float Inquiry
The customer can view the details of uncollected balances, with day-wise break-up.

Account Activity
The customer can see transaction activity in a given account for a date range supported by the host.

Cheque Book Request

The customer can make a request for a cheque book for an account choosing the number of leaves desired from the set that the Bank offers

Stop Cheque Request

The customer can choose an Account and enter the cheque number/range of cheque numbers for which the cheque encashment should be stopped. He can also specify the reason for stopping the encashment. This is an online transaction only.

Cheque Status Inquiry

The customer can choose an Account and enter the cheque number for which the status should be viewed. In case the cheque is returned or stopped the reason for rejection will also be shown.

Statements download in ASCII format

The user can download his account statement for his current accounts, savings accounts and loans accounts.

Fund Transfers and Payments

The customer can choose to transfer funds by selecting different mode of transfers. Funds can be transferred between accounts of the corporate, to a third party account or to other banks using prevalent payment systems. The user will be allowed to select source and destination accounts depending upon his rights on the accounts for that corporate. Incase of external transfers, the user will be allowed to select the source account and specify the beneficiary details plus any additional payment details. If required, EBL INTERNET BANKING APPLICATION can also support future dated transfers.

Utility Bill Payment

The customer can make Utility Bill Payments to utility companies as set up by the Bank by transferring funds from his/her Savings or checking accounts.

Deposits Maintain Deposits

The user can view all the deposits maintained by the corporate. EBL internet banking application will provide the user with all the details of the deposits and allow to modifying certain parameters.

Request for rollover of deposits

The user can request for a rollover of a deposit upon maturity.

Request for premature closure of deposits

The customer can redeem/encash a deposit prior to maturity.

Loans Loan application requests

The customer can request for loans in a format prescribed by the bank.

Initiate part or full payment of Loan

Users can initiate a payment for a loan, in either part or full through the system. A list of all the loan contracts that are active at the time of payment will be displayed. The user will have to select the contract for which the payment is to be made.

View schedules of loan payments

The customer can view the schedules of all the payments for any loan contract. All the schedules for the contract will be shown, this will include the schedules that are already paid and the schedules that are yet to be paid.

Inquiries and other services Interest Rates Inquiry

The customer can query on the interest rates offered on Savings & Term Deposit Products offered by the Bank

Foreign Exchange Rates Inquiry

The customer can to view on-line Forex quotes (spot and forward), forward cover rates, view existing Forex contracts and initiate foreign exchange contracts.

Messages & Bulletins

The customer can send requests in the form of messages to the bank. This will help the marketing team to provide a solution for any request-based transaction. The messages are sent as free-format text and the user can compose new messages, save existing messages (including draft messages), reply to any messages sent by the bank and delete the messages. This facility can be used by the customer only to correspond with the banks and not for corresponding with other customers.

Product Information
The Bank would be able to publish its promotional material using this function

Change Password
The customer can voluntarily change the Internet password using this function. In addition the user is forced to change the password by the system as per the password policy defined by the bank.

Session Summary The customer will be able to view a log of the transactions performed in a session.

DIFFERENT TYPES OF PLASTIC CARD OF EASTERN BANK LIMITED (EBL) EBL simple card:
The first of its kind it is a complete Credit Card with every benefit possible, and still offering something extra. At work or leisure, experience the convenience of a Card that does everything with style and honesty. When you become a member of EBL SIMPLE Card Services family, you become a part of an exclusive club entitled to first class financial advice, priority treatment and a growing range of courtesy services. We understand the value of your money. That is why we aim to give you the highest benefit at a minimum cost.

Experience EBL credit card - Experience simple Features at a glance: One time Fee, Lifetime Free:
Owning a Credit Card is a basic right of a Qualified Financial Services Consumer and there is no strong reason to pay fee every year for that right.

EBL has shown respect to this concept. To avail EBL Credit Card services, you need to pay the Issuance/Joining/Subscription/ Annual Fee only once. After that there is no annual fee for you as long as you transact at least 18 times in a whole year. It is a lifetime Card. As per market standard, an average cardholder uses his/her card almost 24 times annually. So, without doing anything extra - you can have the free renewal option for the following year.

Balance Transfer:
EBL is happy to introduce Balance Transfer for the first time in Bangladesh. If you have Other Bank Credit Card(s), you have the option to transfer your current outstanding balance at a much cheaper rate to your EBL Credit Card. This saves your money, time and gives you the convenience to manage all your expenses from one point. EBL wants to be your lifetime partner. That is why we care about your current outstanding amount. We are offering Balance Transfer (BT) @22% per annum. The standard market interest average of Bank Credit Card is 30%. We are offering you to switch your cards @8% less interest.

Card Cheque
Through EBL Credit Card you can enjoy a full-fledged cheque book facility. You can make payment (account payee only) to any person or organization of your choice. This cheque book is useful with situation where you cannot use your credit card (e.g. tuition fees, rent, etc). We are offering the FIRST CHEQUEBOOK FREE. There is a charge for subsequent Cheque books.

Worldwide Acceptance
EBL Credit Card is accepted at over 5,000 VISA merchant outlets around the country and over 24 million VISA outlets worldwide. You can use this Card for a wide range of products and services such as hotels, restaurants, airline & travel agents, shopping malls and departmental stores, hospitals and diagnostic centers, jewelers, electronics & computer shops, leather goods and shoe stores, mobile phone and internet service providers, fuel station and what not! This number is progressively on the rise. No matter wherever you are with EBL Credit Cards, you will always have the purchase power.

Immediate Cash Advance

With an EBL Credit Card in your wallet, you will not be strapped for cash ever again. You can withdraw cash up to 50% of your total credit limit 24-hours a day from any EBL ATM; or any VISA participating member bank ATMs across the country; or from any VISA ATMs worldwide. You do not need to worry of carrying cash anywhere not even on a foreign trip when there is no one to give you hard cash at time of need. EBL Credit Cards shall always be with you.

Supplementary Card
EBL Credit Card gives you the opportunity to share the benefits of your card with your dear ones by providing you supplementary cards. Being a primary cardholder, you have the option to set a spending limit for each of your supplementary cards. This is perfect for you if you are thinking of giving your Children their pocket money in a controlled way. You can easily setup their spending limit and also have an eye on their spending behavior. All transactions on your supplementary card will separately be shown on your monthly statement.

Risk Assurance Program

Risk Assurance Program is a Double Benefit Insurance Plan for the EBL Credit Cardholders. The entire dues on the credit card in the event of death or permanent total disability of EBL credit cardholder will be waived and the cardholder or his/her family will receive equal amount to meet immediate expenses under Risk Assurance Program. Very nominal charge will be applicable for this coverage. Cardholders can decide to cancel this program by sending a letter to EBL at any time.

Great Discounts
We have collaborated with hundreds of vendors for giving the EBL Credit Card users a hefty discount on their products and services. The great discounts in turn allows you either to save money or shop more with the same amount you are spending now. Less or more choice is yours. Spending was never been so great.

Shoppers Guide
EBL Credit Card provides you a list of shops and outlets where using the card will entitle you to receive certain discount. We have chosen a large number of shops and retail outlets for the

purpose. The printed guide comes with every details (i.e. shop name, address, discount value etc.) thus making your life easier.

Easy Installment Program

Easy Installment Program of EBL Credit Card allows the cardholder to convert any retail transaction into an easy installment plan. You can purchase any high value product or service and make payments in Equal Monthly Installments (EMIs).

Auto Debit Facility

If you have an account with any Eastern Bank branch, you have the option of making the payment of your monthly credit statement (either the minimum amount due or the total amount due) directly through your bank account.

Convenient Payment Option

When you receive your bill, you need not pay the entire bill amount. You have the flexibility of selecting any of the following payment options: 1. Pay the total amount due. 2. Pay only the minimum amount due (5% of your total outstanding or BDT 500 whichever is higher for local card and for Dual card 5% of your total outstanding or USD 10 whichever is higher) and the balance can be carried forward to subsequent statements. 3. Pay any amount ranging from the minimum amount due to the total amount due. You can plan your payments conveniently, without creating any extra pressure on your finances.

SMail Service
EBL cardholders can receive monthly statements via e-mail, completely free of cost. This is a fast, reliable and efficient service, which will minimize your paperwork and maximize convenience. Your Statement Mails or SMails can be delivered to more than one e-mail address (up to a maximum of three e-mail addresses). All you need to do is just filling up the form and EBL will do the rest. Its all smile with SMail.

Photo card with Signature

Your EBL Credit Card has your photograph and signature digitally imprinted on the Card. This provides you extra security at any of the merchant establishments. In fact, it can be used as a proof of identification, in the interest of your own security.

Global Emergency Assistance Service

When you travel abroad, please remember that you have the option of using the Global Emergency Assistance Services provided by VISA for our cardholders. These can be availed for: 1. Reporting lost/stolen credit cards, 2. Requesting for an emergency card replacement, 3. Emergency cash advance & 4. Miscellaneous enquiries. The toll free telephone numbers for accessing these emergency assistance Help lines are available in local telephone directories/yellow pages and other local listings in each country.

EBL Mobile Alert

EBL Mobile Alert is a very simple, powerful and convenient way to know your Credit Card statement details instantly without any postal delays. As soon as you become an EBL Credit Cardholder, you automatically join in the EBL Mobile Alert service and get faster, reliable access to your Monthly Statement. Mobile alerts from EBL provide you with information on your EBL Credit Card even when you are on the move. You would now no longer miss a payment or exhaust your credit limit without a warning. Once your statement is generated, EBL will notify you about the balance status with payment information. Life has never been so easier.

EBL Rewards Program

A special bonus plan that allows you to earn points every time you use your Card, Every Tk. 50 that you spend earns you 1 point. The redemption of reward points can be done against the products, services in the rewards catalogue. The enrollment is free. EBL is preparing the rewards listing and shall mail you the catalogue with program details as soon as it is launched.

Self-set Limit
EBL Credit Card is the only Card that allows you to pre-define your own credit limits. You can request for a limit lower than what you are eligible for. You can even preset the monthly spending limits on the Supplementary Cards. Any transactions over the specified 'Spend Limit' will be declined. This monthly spending limit can be reset every billing cycle by just calling the

EBL 24-hour Cards Center and place your request with the Customer Service Executive. Your spend limit will be changed on-line and come in to force from the next billing cycle.

Limited Lost Card Liability

In case the Card is lost or stolen, call the EBL 24-hour Cards Center and report the loss of your Card. A new Card will be sent to you within 72 hours of reporting this loss. You are protected from any financial liability arising out of transactions done on your missing Card, from the time you report the loss to us.

24-hour Cards Center

The EBL 24-hour Cards Center is equipped with a state-of-the-art system that ensures your queries being handled efficiently and promptly. For any card-related query or information, all you need to do is dial 9571760 or 9571775 Ext. 120/130

Charges and fees: Local Classic

Card Issuance Fee 1,300 Renewal Fee - Base Card* Card Issuance Fee - Supplementary Card Renewal Fee - Any Supplementary Card* Card Replacement Fee PIN Replacement Fee Finance Charge on all Transactions (per month) Balance Transfer Interest (per month) 2,500 NIL 1,300 NIL 150 150 2.50% 1.83% 1,300 NIL 2,500 NIL 300 300 2.50% 1.83% 2.92% 500 X or 3% 2,500 NIL 1,300 NIL 200 200 2.50% 1.83% 2.92% 300 $ 10 or 3% NIL 2,500 NIL 400 400 2.50% 1.83% 2.92% 500 $ 15 or 3% or 100

Local Gold

Dual Dual Classic Gold

Interest on Excess of Limit Amount (per month) 2.92% Late Payment Fee (BDT) Late Payment Fee ($) Cash Advance Fee (BDT whichever higher) 300 X 3%

100 Cash Advance Fee ($) Balance Transfer Fee Duplicate Statement Fee (BDT) Returned Cheque Fee (BDT) Outstation Cheque Collection Fee (BDT) Sales Voucher Retrieval Fee Certificate Fee X 1% 50 200 250 200 200

100 X 1% 50 200 250 200 200 100 0.35% Free 150 250 1% Free

100 3% 1% 50 200 250 200 200 100 0.35% Free 150 250 1% Free 3% 1% 50 200 250 200 200 100 0.35% Free 150 250 1% Free

Expired Card Printing Charge/Plastic Fee (Every 2 Years, if the card is in zero renewal 100 mode) Risk Assurance Fee (BDT) First Card Cheque Book 12 Leaves Card Cheque Book Fee 12 leaves (BDT) Card Cheque Book Fee 25 leaves (BDT) Card Cheque Processing Fee (BDT) Statement by Email - SMail Service *Subject to minimum 18 transactions in a year 15% VAT applicable on all fees and charges 0.35% Free 150 250 1% Free

EBL Debit card: EBL Campus - Fist time in Bangladesh a tailor made banking pack for students. Cool Card - Under EBL Campus, its another fantastic offering- the perfect vehicle for doing away with the hassles of carrying cash around. This VISA Electron Debit Card- specially designed for students- is not just a piece of super- smart plastic, its much more. Its freedom, ease, order, safety & style- all put together in a cool, cool fashion!

FEATURES: A global branded VISA Electron Debit Card tagged with Campus Account maintained at EBL Round the clock access to a large ATM network (over 85 Q-Cash & VISA ATMs within Bangladesh) and a larger network of POS terminals at different shops Discount on purchases available from many retail outlets/shops Cheaper than EBL VISA Election Debit Card (available for general customers) ELIGIBILITY: You need to be a student You need to have an EBL Campus Account opened with EBL Minimum age: 18 years EBL Campus LIFE STYLE CARD: EBL Campus - fist time in Bangladesh a tailor made banking pack for students Life Style Card - Under EBL Campus its another brilliant offering- a solid, internationally branded prepaid card that suits the lifestyle of students. The best way to not only make a fashion statement, but also to control your spending all in style. Reload and use only when you need to do.

FEATURES: A global branded VISA prepaid card Reloadable Round the clock access to large ATM network (over 85 Q-cash & VISA ATMs within Bangladesh) and a large network of POS terminals at different shops Discount on purchases available from many retail shops/outlets Having a bank account with EBL is not required

ELIGIBILITY:

Minimum age: 18 years

Standard Chartered Bank's online banking service.

iBanking:
IBanking is a simple, hassle-free and secure internet banking service available to all Standard Chartered Bank customers in Bangladesh IBanking offers the convenience of managing and controlling customers banking and finances whenever customers want to, wherever its needed. iBanking is convenient, simple and secure. Users of iBanking: To enjoy this facility, you will have to be a customer of Standard Chartered Bank, Bangladesh. Your existing relationship with us can be in the form of an account or a credit card. Advantages of iBanking:

Standard Chartered Banks iBanking facility is simple and secure and its absolutely FREE of charge! With iBanking, you can access any of the basic banking services you require, 24 hours a day, 7 days a week, and 365 days a year. Exclusive iBanking offer: iBanking offers the following range of online services------Account Services View your account information, download and print your account statement, request a chequebook, request an account statement by mail and ascertain the status of cheques you have issued. Fund transfers Transfer funds between your own accounts. You can also set-up standing orders to make the fund transfer process simpler and save time. Payments Make your credit card payments from your Standard Chartered Bank account.

Card services With iBanking you can view your complete Credit Card details. You can view your Credit Card statement, determine the minimum amount due, request for a credit limit increase and even make an online card payment. Personal update Change your password as and when you want to.

Credit card types: Local Card

Visa Silver Credit Card Visa Mini Card MasterCard Silver Credit Card MasterCard Gold Credit Card MasterCard Platinum Credit Card MasterCard Cricket Card

International Card

Visa Silver Credit Card Visa Gold

Unique Features Of Standard Chartered Credit Card: Installment loan facility:

This exclusive feature allows the cardholders to convert any purchase over Tk. 5000/- into an installment loan at a flat interest rate of 16.95% and repay in 6.12.18.24.or 36 monthly installments as chosen by the cardholder. Special promotions are running with specific merchants where customers can avail Install Buys facility at 0% interest.

Rewards Programmed:
Under this plan, SCB Taka cardholders can accumulate treasure points for their purchases and redeem the points for a wide variety of gifts offered by Standard Chartered Bank. For every Tk. 50 spend on the card, cardholders earn one treasure point.

Card Cheque:
SCB Taka credit cardholders can avail a Cheque book against their credit card and use the Card Cheque for payment to any person or establishment. Card Cheque is especially useful where credit card acceptance facility is not available (e.g. house rent, school fees etc.)

Free All Accident Insurance coverage:

SCB Taka (both primary & supplementary) Credit Cardholders are automatically enrolled into All Accident Insurance Coverage free of any charge.

Auto Bills Pay facility:

This exclusive feature allows Credit Cardholders to pay their monthly mobile phone bills (Aktel, CityCell, and GP), Internet Bills (Agni, BOL & Accestel), Cable TV Bill (Prisma Digital) and electricity bills (DESA) through a standing instruction on their credit card.

Safety Net Insurance Scheme:

Under this insurance scheme, the bank waives the total outstanding balance on the card in case of Death or 'Total Permanent Disability (PTD) of the primary cardholder. Cardholders are automatically enrolled into the program and are charged a nominal fee of 0.35% on their monthly balance.

SMS Banking Facility:

This feature provides cardholders an easy 24-hour direct access to their Credit Card balance information on their GP or CityCell mobile. Cardholders availing this service will also receive a monthly mini-statement through SMS, free.

E-Statements:
This is a secure and prompt way to receive Credit Card's monthly statement at e-mail address instead of receiving a paper statement. Cardholders can choose a maximum of 3 e-mail addresses for receiving their statements. In case of delivery failure (for any reason), a paper statement will be sent to the cardholder's mailing address.

Consumer Guide on Credit Cards

Request your bank to give you the Highlights of Terms and Conditions governing the Credit Card that you are applying for to provide you the following information: 1 - Repayment grace period - Interest rate charges for outstanding balances - Minimum monthly payments - Late payment charges - Annual membership fees At the same time, ask yourself the following 15 questions when applying for a credit card: 1 2 3 4 I. Why am I applying for this card? ii. Can I pay for the purchases in full each month? Alternatively, do I intend to pay the minimum sum required and rollover my payment? iii. If I do rollover my payments, do I have the capacity to pay the accompanying charges? iv. Do I understand the terms and conditions for the use of the card? For example, do I know what the various fees, interest, finance charges and penalties that accompany the use of the credit card? 5 v. What action can the bank take if I fail to settle my overdue payments?

Membership Fees

vi. When will the promotional free membership period, if any, expire? What is the fee I will have to pay after the expiry period?

Payment
1 2 3 4 vii. What is the minimum amount I have to pay each month? viii. How much interest do I have to pay on the outstanding amount? ix. If I do not make the minimum payment for one month, what are all the interest and other charges that I will have to pay? x. What are the charges I will incur if my payment, either by Cheque or by GIRO, is returned for whatever reasons?

Cash Advances
xi. If I take a cash advance from my credit card line, what are the charges that I will have to pay?

Loss of Credit Card

1 2 xii. If I lose my credit card, what must I do? xiii. If I lose my card what are my liabilities for unauthorized purchases?

Credit Limit
1 xiv. What is my credit limit?

Changes in Terms and Conditions

1 xv. If there are any changes in the terms and conditions for the use of the card, will I be informed of these changes? If so, when will I be informed of these changes?

Software of credit card operation of SCB:

The software which is used for operating credit card operation is mainly customized software. The name of this software is called CARD400. Thos software has some specific features. Some of them are stated below:

Users Friendly:
This software is not users friendly. This means all users have not enough capacity to use this software. Only responsible person can easily handle this application.

Database Software:
This software is mainly database software. All related data are mainly inputted by the operator. All forms, queries, table and report options are available over here.

World wide use:

Standard Charted bank uses this software all over the world. This software is recognized by the institution for doing its Credit Card operation.

On-line all time:

Though Standard Chartered bank is a multinational company this organization is linked by internet and intranet. Its all software can share data electronically. This Software CARD400 can also available On-Line all time.

Comparative study of online services: SCB & EBL

Variables of distinctions:

Online services Annual fees for credit card Interest rate Insurance coverage
Range of card choices

Free All Accident Insurance coverage

Debit card specialty

Online services:

Among the leading local commercial banks, EBL is the first to introduce online banking services in Bangladesh and is serving the nation with the following main services:

Online services by EBL

Account Operations and Inquiries Fund Transfers and Payments Utility Bill Payment Deposits Loans Inquiries and other services Session Summary

SCB is in of the leading multinational foreign commercial bank in Bangladesh which is providing mainstream online banking products from its global expertise. The following are the main services:

Online service by SCB

Installment loan facility Rewards Programmed Card Cheque Free All Accident Insurance coverage Auto Bills Pay facility E-Statements SMS Banking Facility Safety Net Insurance Scheme

Annual fees for credit card:

With EBL credit card, customers need to pay the Issuance/Joining/Subscription/ Annual Fee only once. After that there is no annual fee for as long as customers transact at least 18 times in a whole year. It is a lifetime Card.

With SCB credit card, customers need to pay annual fees for continuing the card. This not like as life time card.

Interest rate:
EBL is providing credit card hovering around 30%, (per month 2.5%). On the other hand Standard Chartered it is 33%.

Insurance coverage:
EBL has a double benefit insurance plan. The entire dues on the credit card in the event of death or permanent total disability of EBL credit cardholder will be waived and the cardholder or his/her family will receive equal amount to meet immediate expenses under Risk Assurance Program. But SCB has only single benefit insurance plan. Under this insurance scheme, the bank waives the total outstanding balance on the card in case of Death or 'Total Permanent Disability (PTD) of the primary cardholder. Cardholders are automatically enrolled into the program and are charged a nominal fee of 0.35% on their monthly balance. Range of card choices: EBL has only VISA card. On the other hand

Free All Accident Insurance coverage:

EBL credit card does not provide all insurance coverage.

SCB Taka (both primary & supplementary) Credit Cardholders are automatically enrolled into All Accident Insurance Coverage free of any charge.

Debit card specialty:

EBL debit card (cool card, campus card) is concentrated on general people but mostly students. SCB is not focusing on any specific class.

Variables of similarities:
Both of the banks provide some similar kind of online services. These are stated below: Statement through E-mail service Convenient payment Auto debit facility Discount on purchase Supplementary card

Card cheque
Easy installment payment:

Card cheque:
Both of them provide (EBL & SCB) card cheque facilities. Supplementary card: Both of them provide (EBL & SCB) Supplementary cards and separate monthly bill statement for both main card and supplementary cards. Discount on purchase: Both of them provide (EBL & SCB) discount on purchase made through credit card transactions. Auto debit facility: If customers have account in the concerned banks then both the banks provide (EBL & SCB) auto debit facility that is debit instructions on the existing accounts for payment of credit card monthly bill.

Convenient payment: Both the banks (EBL & SCB) have flexible term bill payment facility. Card folder can pay higher of 5% of the outstanding bill or taka 500. Statement through E-mail service: Both the banks (EBL & SCB) have been providing card holder the ease of receiving monthly bill statement through E-mail service and mobile alert. Easy installment payment: Easy Installment Program of both EBL and SCB Credit Card allows the cardholder to convert any retail transaction into an easy installment plan. You can purchase any high value product or service and make payments in equal monthly installments (EMIs).

Security concern and protection aspect of Online Banking:

Modernized information systems (IS) have brought enterprises not only enormous benefits, but also linked information threats. Many tools and anti-virus systems, covering almost every facet of IS security, have been developed in response to these threats. A survey by the Computer Security Institute reported that of 530 US enterprises surveyed, 90 percent identified a security breach while 75 per cent found business difficulties due to the breaches, causing a total loss of $202 million in 2002 (CSI/FBI, 2003). Online Banks are mostly vulnerable to these security threats. In 2004 Forrester Research Inc. reported that 14% of online consumers have stopped using online banking and bill pay due to email fraud concerns. In 2005 in USA 1.2 million consumers lost $929 million due to phishing attack (Gartner, 2005). 48% of US citizens avoid online purchases because they are afraid their financial information may be stolen (Cyber

Security Industry Alliance, 2005). However, According to research from market information company TNS, 30 % of UK adults are more confident about online banking security than they were in 2002. Youngsters are particularly optimistic about the banks - with 41 per cent more confident than before (Best, 2004).

Types of security threats:

Security threats can be divided into two types IT and non-IT related.

IT-related threats
IT-related threats are those involving Software Hardware Data and The network

Non-IT related threats:

Non-IT related threats are those related to the following aspects: Personnel Administration and Physical/environmental abilities

Security measures:
The requirement of security measures can also differ considerably between different industries. There are three reasons for financial firms to invest more than other firms in IS security. They are: Financial firms rely more than others on IS for business operations. Owing to the need for intensive information, potential losses from IS abuse can be extremely large. Their IS abuses pose a severe risk to their public image, which is critical to business success.

Risk-Mitigating Measure:

A security countermeasure is a risk-mitigating measure that detects, prevents or minimizes loss from a specific IS threat or category of threats. It can be either preventive or a deterrent.

Preventive measures:
Preventive measures incorporate the following important considerations to protect are assets: Advanced security software or control, Advanced access control Intrusion detection Firewall and Surveillance mechanisms

Deterrent efforts:
There are different deterrent efforts as well which include: Developing security policy statements and guidelines; Educating users about what constitutes legitimate use of IS assets The consequences of illegitimate use of IS assets Training experienced auditors to audit IS asset usage.

Firms including both preventative security software and deterrent administrative procedures in their security countermeasures significantly reduce levels of computer misuse. Online banking in Bangladesh: prospects and problems
Current situation: Though in late both local and foreign banks in Bangladesh have started to revamp their value chain. However, a large gap has been noticed in this revamping effort between the foreign banks and that of local commercial banks (the gap is particularly great in respect of local public commercial banks) as regards to intra-branch and inter-branch online networks. However, substantial per cent of local banks are planning to introduce e-Banking, which implies very dynamic improvements in their ICT use indicators. Virtually all banks use banking software at

their head offices and during the past few years around one third of local banks has become SWIFT members. Other than foreign banks, Eastern Bank Ltd. has introduced internet banking or e-banking in Bangladesh. Credit card and point of sale services (POS) are already provided by a quarter of local banks, while ATM and internet banking are expanding rapidly especially in major cities).

Online Services in Bangladesh:

Online banks in Bangladesh are providing 12 types of online services. In Bangladesh most online banks provide services like-- Any Branch Transaction Change of Password or ID Auto Teller Machine (ATM) Bank Statement Electronic Fund Transfer (EFT) Internet Banking Check Book Order Point of Sales (POS) payment Utility Bill Payment Short Message Service (SMS) Banking Web Shopping on Internet Phone Banking

Hindrances on the way of online banking potential:

It has been found that education does not impede against online bank service use, because non-users consumers are even more educated than the users. We identified reasons for not using the online banking services by existing customers. The most curtail reason are: Inadequate service Does not feel the need to use Unable to Operate

Not aware

Inadequate services:
Inadequate services includes

Non Users:

Shortage of ATM booths, Technical problems,

The non-users do not feel the need to online because their house or office is near the bank branch and they prefer to use check book.

Infrastructural problems:
The growth of online banking depends on two factors: one is internet penetration and the other is primitive strike approach. There is a strong positive relation between Internet usage and online banking usage. According to a study of Bangladesh Association of Software and

Information Services (2005) in Bangladesh only 6.66% of the total population penetrates internet which is much lower than the required users to launch online banking. Urban focus of Banks: One of the main problems of introducing online banking in Bangladesh is the urban focus of the major banks currently providing online services. As they do not have branches in the rural or suburban areas, they do not bother about the substantial part of the population leaving in those areas. As a result significant portion of the population are lagging behind in terms of the facilities reaching them through banking systems. Though telephone lines have been reached in many parts of the country and widespread cellular connection been there, but the urban focus has been the prominent reasons for non-existence of widespread online banking. Inefficient clearing house facilities: The clearing house is not half- automated. It requires full automation so that it could encourage commercial banks to go far back and front office e-banking. Lack of strategic plan:

There is lack of strategic plan to gain and retain market shares by the indigenous banks. In addition, much bank management is not inclined to give services with electronic means.

Recommendation:
Like other countries: USA, Malaysia, South Africa, in Bangladesh the critical mass for online banks is 21-35 years age group people. They are educated and most of them are service holder by their profession .Unfortunately a group within them dont use online services for inadequate services offered by the online banks, unawareness and inability. To solve this problem, online banks have to take awareness building and motivational programs. In addition to that banks have to expand their network with state of art technologies, which will make the online service easy, comfortable, secured and enjoyable.

Among the online services, ATM and POS is mostly preferred and used by the users. But, in the other part of the world, countries like USA, Thailand, popularity and usage of payment of utility bills has been increasing. Bangladeshi online banks should more concentrate on this area. If the banks could meet the demand of services of that critical mass, it wont take too long to see a country wide banking network in which virtual bank will operate.

As the growth of online banking immensely depends on high quality and speedy internet connection Govt. should take corrective actions for high speed internet availability through out the country.

Urban centric strategy of the banks currently providing online banking services should be changed and better scope should be initiated to benefit the deprived population of the country by installing in fastening on line banking services in more remote places.

Conclusive thoughts:
Online banking means today, web based banking. Today banks are embracing web technology to offer more services at a cost effective rate. Although in late ,Bangladeshi commercial banks put forward them selves to gain that competitive advantage .However only moderate percent of commercial banks are on the online track .But technology cant alone grantee them success .Three things are most important : Critical mass, internet penetration and proper management of services .