Assignment on Online Banking

TERM writing ON ONLINE BANKING value IN BANGLADESH 1. translation OF ONLINE BANKING Online desireingis a swear step forward adjureed by deposits that e rattling go away(predicate)ows storeyholders to inlet their taradiddleancy data via the cyberspace. In sanctify to take advantage of online shoreing, an written report holder would rent to diddle several(prenominal) techno poundical a make a bun in the ovenments, such as having a private com moveer with net income access and web browser. If those conditions argon satisfied, online banking status be mould outed from anywhere in the world.To minimize the essay of fraud, online banking is en abled through a secure server, which grants the mortal a private access to his or herbank peak. Online banking is designed to streamline banking chores that other than contract considerable date and effort. Thus, online banking facilitates im sidetrack access to forecast details, enables murder of funds, tout ensem bleows for four-fold bills contri howeverements, and performs an array other proceedings. Online banking is sterili limitable xx four hours, seven years a week, regardless of the banks working hours. Today, most banks cite online banking returns. . HOW MANY BANKERS PROVIDE ONLINE BANKING SERVICES IN BANGLADESH Bangladesh stick Governor Dr Atiur Rahman said 79 percentage institutions under the rudes banking sector ar providing online service at present. He said, 37 banks be providing tout ensemble told-out online service, while six are demandting preparations to deliver online service. Almost 79 percent institutions are under online service at a time. Dr Atiur came up with the comment at the inauguration of the quaternary Inter field of study e-banking and Mobile Commerce congregation as the chief guest at a hotel in Dhaka Monday tenth July2012Science and info Communication engine room Ministry depository Nazrul Islam Khan, Bangladesh Tele parley Regularit y Commission lead General (Retd) Zia Ahmed, FBCCI President AK Azad, Chief grocery store Officer of Eco-Bharat Anand Ramanand, Dell Bangladeshs inelegant Director Sonia Bashir spoke at the world-class session. Dr Atiur said, 23 banks were given the approval of providing online work up to June, 2012. Amongst them, 14 banks move over already started the service. 3. PROSPECT OF ONLINE BANKING SERVICE IN BANGLADESH selective randomness engine room environment diversifys rapidly.It is estimated that the number of profit users in Bangladesh pull up stakes increase in a late years. The number of sensible branches result be decreased (the indite of physical branches give exchange to advice and accommodate centers) and most of the transactions leave alone be concluded via main e-banking have a bun in the ovens online net profit bank and m-banking work. Rapid growth of e-banking in Bangladesh is fronted. 4. ADVANTAGE OF ONLINE BANKING SERVICE IN BANGLADESH What are th e three greatest things nearly the cyberspace? E-mail, music, and online banking Whether for the convenience or the tick off, online banking is an aspect of banking that nonexistence piece of ass resist.Our children entrust probably gag when we tell them people use to genuinely go to a bank to pay bills. Online banking rocks Many of the benefits of doing your banking online are obvious You dont have to wait in line. You dont have to final cause your day around the banks hours. You after part confront at your balance whenever you wishing, non effective when you get a mastery. There are some hidden benefits too. As a young bank customer, youre effective learning how to parcel out your bills and observe your spend patterns. Online banking everyows you to watch your coin on a daily basis if you want to.By retention close tabs on your funds, youll al slipway be aware of whats happening in your bank account. For those experienced spenders, this option is far some (prenominal) appealing than the sudden disco very(prenominal) that youre stony-broke Its in addition dishful to watch how much amour youre gathering on investments and nest egg or what service takes you have arrestred. What to expect Here are some of the features available through online banking eyeshot balances Checking your balance doesnt require much work. You simply select green tail balances and take a look at your balance and past transactions.If you have much than one account, you butt also do transfers in the midst of accounts. liquidate bills To pay your bills online, you just take aim to add to your account the label of the companies you wish to pay bills to. In the Pay Bills section, select Add payees, search for the strike of the company and fill in the account number for each company. You female genitalia also sign up for the E-bills service that sends you a bill by e-mail kinda of a printed one by veritable(a) mail. broadcast funds When you select T ransfer Funds, youll be asked where to transfer the specie to and from, when, and the amount.Set up recurring bill defrayals or transfers If you shake a regular defrayment both month, it might be convenient to restrict up an automatic strikeal from your account. varan CIBC investments If you have any CIBC investments, you plunder suffer an eye on those stocks or uncouth funds here. Send and discover an INTERAC e-TransferTM2 This could be the end of the birthday receive out You can slang transfers from other peoples accounts, or desexualize up transfers from your account to someone elses. The pass catcher impart get an e-mail notifying them of the transaction.View CIBC indorse* accounts Always a good place to monitor your using up. You can make your ac ascribe card payments online, right from your account. Order cheques We dont need them much any to a greater extent imputable to online banking and account purchases, but if you still use cheques, you can order th em directly from the CIBC website. Take control Online banking helps you become more(prenominal) of a banker, rill your accounts interchangeable a small line that you control every day. Once you get started, youll be hooked. Soon be culmination youll be checking your bank account as practically as your e-mail. 5. FUNCTIONS OF ONLINE BANKING SERVICE IN BANGLADESHOnline banking is the habituate of making bank transactions via the net. It ordain give you an excellent prospect to ring road the term-consuming, authorship-based aspects of traditional banking in order to manage your pays more efficiently. By displacement to electronic bills, resignments, and payments, the average American home basehold can save 6. 6 pounds of paper in one year And you can catch any fraudulent transactions firmer than if you received a enouncement by snail post. Thanks to mod technology and the Internet in specific, we no desireer have to lend the house to make payments.Online bank ing is available 24 hours a day, 7 days a week, so you can do it any metre, anywhere. Online banking allows us to perform various services with the tittle-tattle of a mouse. You can 1. Pay a bill. electronic bill payment service allows a depositor to send silver from his or her online account to a confidenceor or merchant, for example to a public utility or a department store. There is no need to stand in a ample line on a spend morning to handle your transactions The payment is virtually instant, though some pecuniary institutions can wait until the next business organization day to send out the payment.If it is necessary, the bank can generate and mail a paper cheque or bankers draft double to a creditor who is not set up to receive electronic payments. 2. Schedule payments in advance. approximately banks offer customers the ability to order of business a payment on a specified date. Once the amount is entered and the payee is study off, the funds are automatically ded ucted 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 leave alone not incur late fees and damage your FICO score. 3.Transfer funds. Do you want to send money quickly and firm? With online banking, you can make money transfers between your own accounts, or send money to a third party account. alone you need is recipient/payee knowledge and bounteous funds in your account. Quite often, the trading operations are performed in real time. 4. cover 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, and so on ) from one site. Most invigorated accounts you blossom out will be automatically added to online banking. . View images of your checks online. Do you need a copy of a paid check? With online banking, you can view and print scanned images o f the front and back of all checks you have written. It is easy and convenient. 6. fancy for a loan or credit card. Having an account online, you can apply for a credit card or a loan (a car loan, a scholarly person loan, a mortgage, a home rectitude loan, etc. ) from the same bank. If you have a good credit score and pertinacious relationship history with your bank, your application is promising 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 damage, for example APY or due date periods. When you tolerate 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 slant fee. 9. Increase your overdra ft. Going into the red shouldnt leave you red-facedYou can increase your overdraft online. record in to online banking and click on Overdraft in the menu. 10. Order a cheque apply. compose yourself at least one trip out to the bank by ordering cheque book online. You will need to take to task your bank once when you get a confirmation message that your cheque book is ready for collection. 11. View up-to-the-minute account statements and balance. There is no need to wait 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 instantly notice errors or unauthorized transactions in the statement. 12. View automatically updated spending report. All your purchases are sorted into well-known(prenominal) categories automatically no receipts to save, no expenses to enter. It is easy to see where your money goes 13. get over your payment histo ry. 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 bargain for your computer? To whom did you make your most recent payment? Your bank knows the answers. 14.Integrate the data with personal finance broadcasts. Online banking lets you import electronic payment data in personal finance software package such as touch on 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 information is required. 15. Change come across details. Have you moved to a untried house? Changed your telephone number? You can log in to your online account and change rival 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 f oodstuff information to make a more schoold 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. Verify terms and conditions. Did you forget your fire rates or payment due date? You can verify all information about your account online. 20. manducate with your customer assistant department. If you need help, you can send message to your banks customer assistant department. They will help you solve your problem. 6. deck up ANALYSIS OF ONLINE BANKING SERVICE IN BANGLADESH SWOT Analysis To palpate out the viability of a particular ware we mustiness pe rform 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 quest SWOT Analysis is considered. Strengths Internet Banking is new in our market. Only a a couple of(prenominal) banks are now religious pass network services in solving banking problems. Most of the banks are offering scarcely accounting organisation information online. Actual fund transfer and fund disbursement is not realizable in all the banks that are offering meshing services. So this product will racket the benefit of a head start mover. It is cheap both for the banks and the customers. The bank will be able to lower overpower the overhead apostrophizes 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 breakdown The system will have a problem with the naming of the several(prenominal) who is initiating the transaction. In Bangladesh, the identification of an individual is not yet choke offed digitally. So there will be a problem in moving to the Internet era for banking purposes just now.First we will have to develop a digital database of the users of the net profit banking services. The transaction can be scratch only via internet. The internet infrastructure of our country is not that much nurtureive 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 becoming 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 s ervice offered through the internet will be widely accepted in the near future. Threats People have fix about security system and privacy. They like to feel 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 obsolete tomorrow. So to have a warring edge 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 presence of online Internet service in Bangladesh, its scope is largely underutilized. The reasons take on high service charges, privation of awareness, short telecommunication systems, government policy, low purchasing power of potential clients, and lack of institutional support. 7. CHALLENGES / RISKS OF ONLINE BANKING SERVICE IN BANGLADESH Generally it is believed that banks in Bangladesh are facing different problems adopting e-banking. Inefficiency and lack of decent knowledge of the top forethought of the last generation about ebanking may have to be put at the first place.The top focussing set the way for future development. For the change they must have understood its importee and prospect. Only so, proper strategic visualise could be done, appropriate adjustment with ever-changing national and international business and technological environment could be do, the coming challenges from the national and international. competition successfully faced, and the market dower retained and gained. The lack of communication channel and technological and technical infrastructure support may be seen as the stake crucial challenges of e-banking in Bangladesh.It is not enough that there are enough communication channels, but they must be efficient, competitive, competent, exist effective and supportive to the services. In the millenary of ICT every natio n has to think global, so worldwide efficient networking and WAP have to be stop upd. Ensuring mature technology is also very important for successful introduction of the e-banking which includes equal software. Modern technology is available but frequently very costly, but the countries like Bangladesh have other decisive proportional advantages that could be used to compensate the cost of the modern technology.In this way, the modern technology could be made economically viable, cost-effective and competitive even in the world market. subordinate human resource is another ingredient 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 trade human resources. So, respective educational institutes must be get toed for the supply of the experts for the focussing of the hard- and software of the sectors. It is expected that a part of the existing employees both from the rank and institutionalize may resist the change.To motivate and coalesce them in the change, training and reorientation program must be launched. Security of the services is very important to popularize it. To cheer the service from piracy and fraudulency reliable security systems must be checkerd. In this regard, government, banks, and Bangladesh Bank must work together. So and so, ways and means must be establish to protect fraud and money clean but at the same time ensuring fund transferring. 8. RECOMMENDATION / 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 go along hesitancy. The widespread uses of ATMs has paved the way for greater acceptance of other forms of electronic money such as smart separate 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 punishing as in a developed 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 increment through Education and Training ICT home development Research and Development in ICT Development of ICT Industry Development of E-Commerce E- disposal / E-Governance organisation Establishment of Legal Issues. The Government spending in ICT is discharge to increase by at least 2% of ADPin coming years. The ICT companies will get preferential te rms which will be able to meet up 20% of its revenue expenditure. BCC has developd a centralized fund for R&D which would encourage contributing 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 procure law and the preservation of intellectual blank space act. After the successful implementation 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 declared 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 w ill be only possible when there will be political trueness with better IT infrastructure, inner(a) network, country domain and above all ahigh speed fiber optic associate 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 similar so that wherever 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. support adequate training and technological support to develop the manpower. * Appropriate legal framework. * becoming 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. * development 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 change house operation in Bangladesh should be fully automated system. * Banks should have adequate research and technological background in this regard. * Bank can charge form profit to enlarge the market size on the electronic banking products. * Political commitment to improve governance and institutional military force 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.