Briefing about Internet Banking and its Pros and Cons

1. Presented by: Anurag Kusan
New Delhi Institute of Management
PGDM
Section Omega
Roll Number: 396
Business Communications & Corporate Skills

2. Banking may be classified as:
Retail Banking: It is designed to meet the requirement
of Individual customers and encourage their savings
that includes payment of utility bills, consumer bills
and so on.
Corporate Banking: It caters to the need of corporate
customers like managing cash, opening letters of
credit, bills discounting and so on.
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3. Business Communications & Corporate Skills

4. Information Technology
Information Technology (IT) is the acquisition, processing,
storage and dissemination of vocal, pictorial, textual and
numerical information by micro electronics, which is the
combination of electronics and telecommunications.
Information Technology renders data, information or any
perceived knowledge via multimedia distribution mechanism.
 Application of IT in different business sectors has made it
easy to communicate and fetch the desired information
irrespective of the limitations such as distance and time.
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5. Information Technology in Banking
 Application of IT in the banking sector has lead to an
increase in productivity by providing right information to the
customers on time. Thus, it has helped the banks to see a
competitive advantage.
 Helps customers to be updated about the daily
transactions and activities.
 IT in Banking has helped in eliminating the boundations
such as time and distance. A customer can remotely access
their particular accounts and do monetary transactions.
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6. How does the Internet Banking works?
 Every customer availing Internet Banking should have
Internet connectivity and a computer.
The Internet Banking system of the bank has centralized
database that is web-enabled.
Services offered by the bank are displayed in a menu on the
website.
Once a service is chosen, further interaction is dictated by
the nature of service.
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7. Contd..
 Once the branch offices of the banks are interconnected
through satellite of terrestrial links, there would be no
physical identity of any branch.
It would then permit the customers to access services and
perform activities anytime, anywhere and anyhow banking.
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8. Types of Internet Banking (e-Banking)
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9. Telephone Banking
Allows users to perform financial transactions over the
telephone/cell phone
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10. Online Banking
Allows customers to perform financial transactions of a
secured website operated by the bank
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11. SMS Banking
Permits customers to access selected services of the
bank with the help of SMS (Short Messaging Service)
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12. Mobile Banking
Allow users to check account balance, account
transactions and payments through the Mobile
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13. Pros & Cons of Internet Banking
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14. Pros:
 Customers can access their bank account anytime,
remotely. Thus, it eliminates limitations of time as well as
distance.
 e-Banking is cost-effective as the bank can handle
thousands of customers at once. It eliminates the
requirement of too many cashiers & clerks.
 Account information of the customers are available round
the clock, hence the customers can customize their future
payments and activities as per their needs & convenience.
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15. Contd..
 It is easy to transfer money, irrespective of the geographical
boundaries.
Internet Banking allows customers to enjoy quick transactions as
compared to the traditional banking.
 Permits customers to buy/sell items such as shares, online
shopping and so on.
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16. Cons:
 Theft is the major problem concerned with the internet banking.
Loss of bank user id’s & passwords may lead to theft & fraud cases
 Hackers may hack the account details of the Internet Banking
customers despite having the internet security and antivirus.
 In the beginning, customers may find difficulty in understanding
the internet banking platform.
 On the occasions when the bank server is down, it obstructs the
customers from accessing the Internet Banking services.
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17. Thank You
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