The concept of Internet Banking rose from Global FinancialHouses whose primary objective was to ensure that customers were tuned to theirfinances from any part of the world. The main transactions include Online MoneyTransfer and Online Lending. Online Banking services are hassle free andguarantees data confidentiality and security.  Individuals residing in one country could usethe internet as a medium to transfer funds from that country to another,provided the country he is transferring the money too has a branch located. Thebasic modus of operandi is conducted by allowing users to conduct financialtransactions on a secure website operated by their retail or virtual bank,credit union or building society. Other major transactions that are commonlysecured through include Electronic Bill Payments,Loans, Investments and Banking Statements. The Financial Institute Administrationfeatures allow it to manage the Online Experience of their end users and theHosting administration features allow the hosting company to administer thesolution across the financial institute.  

 

 

Features that are unique to includePersonal Financial Management Support, Personal Accounting software &account aggregation to allow the customers to monitor all of their accounts inone place whether they are with their main bank or with other institutions. Protectionand Security is provided through Single Password authentication. In mostcountries shopping websites are not considered secured enough for personalOnline Banking Applications, hence the use of single password. Basically acouple of methods are approached to secure transactions. The first one used isa combination of a Pin (Personal Identification Number)/ TAN (TransactionAuthentication Number), where Pin represents a password used for login and Tana one time password to authenticate transactions. Usually online banking withPIN/TAN is done via a web browser using SSL secured connections, so that thereis no additional encryption needed. The second option is signature based onlinebanking where all transactions are signed and encrypted digitally. The Keys forthe signature generation and encryption can be stored on smart cards or anymemory medium, depending on the concrete implementation.

 

The Advent of the Internet has leveled the advantages thatwere previously held by Global Financial houses. It has afforded open access tocustomers in the global marketplace by being a cost effective delivery channel.It has changed the outlook of the Banking Industry and has helped developcustomer relationships. Its prime focus is to improve customer access, facilitatethe offering of more services, increase customer loyalty & attract newcustomers. Online banking services are continually evolving, and as theservices expand, it will keep getting better for customers.