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Online Banking


									   Online Banking

Janae Atencio
Jenn Swapp
Heidi Zander
Bank Web-sites

   Online brochure
    –   Products and service
   Resources
    –   Rate quotes
    –   Calculators
    –   Financial terms and definitions
    –   FAQs
   Customer Service
    –   Branch and ATM locator
    –   Contact us

 Online           Banking
Why choose Online Banking?

   Easy overall account management
   Access to accounts
   Convenience
   Bank any time of day
   Perform any non-cash banking transaction
   Automate payments and transfers
   No personal assistance needed
Getting started

   At web-site or branch
    –   Set up username and password
    –   Account number
    –   Social Security Number
    –   Birth Date
    –   Mother’s maiden name (or other hard-to-guess info)

    –   Forget password?
            Call customer service to reset or remind
Online Banking
   Overall Account Management

   Balance Inquiry
    –   Check account balance

   Account Transaction Review
    –   Account history – flexible time frames
    –   Verify check clearing
    –   Verify deposit/direct deposit

   Open an Account
    –   Checking, money market, savings
    –   Apply for loan
Online Banking

   Funds Transfer
    –   Move money between accounts
    –   Loan payments
    –   Transactions posted immediately (most banks)

   Bill Payment
    –   Merchants - utility bills, retail stores, credit cards
    –   Choose source account
    –   Add your own payee
         – Name, address, phone number, account number (where
Online Banking

   Receive E-Bills
     –   Select merchants offering e-bills
     –   View, pay, and store online

   Alert and Notification
     –   Account balance reaching personal limits
     –   Interest rates reaching desired levels

   Download Account Transaction History
     –   Download account history in various timeframes
     –   Compatible with personal financial software: Quicken, Microsoft
         Money, etc.
     –   Easily manage finances
Online Banking

   Wireless Banking
    –   Through web-enabled cell phone and PDA’s
    –   Account balance inquiry
    –   Transfer funds

   Personal Preference
    –   Create your own account names
    –   Schedule transfer of funds and bill payments
    –   Categorize payments
Research before you sign-up
   Features Offered
   Fees
     –   Online Banking
     –   Bill Pay
     –   Downloading account history
   Customer service hours
     –   24 hour phone vs. email
   Merchants available through bill pay system
   Statement history available
   Processing time of transactions
   Ability to downloading accounts history into personal finance
   Understand web browser requirements
   Read “User Agreement”
    Security Concerns of Online Banking

   According to a Consumer Reports survey of 15 banks and 300
    participants who bank online…
   Two-thirds of respondents stated they were worried that a hacker
    would attack their bank’s site
   While your money is safe, and guaranteed by the bank, the real
    danger is theft of your personal information
   Your Social Security number and date of birth may be attached to
    your account, and with this info, hackers can open credit cards, and
    run up bills in your name
Security Concerns of Online Banking

   Robert Smith, and internet security consultant, claims that the safest
    web-site you could visit is a bank-web-site
   Banks surveyed used 128-bit, Secure Sockets Layer (SSL) encryption,
    which scrambles data in transit between your web browser and your
    bank's web server (industry standard)
   Banks have fire walls and virus-detection programs to keep outsiders
    from pilfering accounts
   Customers must submit user IDs and passwords before gaining
    access to accounts
   Some banks adding extra precautions – calculator-like security device
    that provides additional encryption – trend in Europe and Asia
Tips for added security
   Your responsibility…
    –   Have a different PIN number for ATM and online banking
    –   Don’t save you username and password on your browser
    –   Check balances periodically
    –   Avoid public computers
    –   Don’t carry account number in your wallet
    –   Always “log off” from bank web-site

   Ensure your Bank…
    –   Does not show full account number
    –   Automatically logs you out after 5 failed log in attempts
    –   Automatically logs you out after 15 minutes of idle time
    –   Web-site has the inability to hit “refresh” or “reload”
Trends in Online Banking

   Currently 25 millions US households  growing to 50 million within
    next ten years
   Existing online users  “Power Users”
   Banks are dropping bill pay fee to differentiate themselves from
   Banks leading customers to Online Banking because it is a less
    expensive service channel
   Getting rid of the brick and mortar is not the wave of the future
   Industry is technology driven – fine tuning after jumping ahead too
      Customer Conversion

                Online Banking Customer Base

                                   Early        Late
Online Bill Pay Customer Base
                                  majority     majority

                        Early                             Laggards


            Banks will spend next few years fine-tuning the technology and
            moving the customer base up through the levels of conversion
   Lee Carter, President, Online Banking, Zions Bank
   Consumer Reports, February 2002, Volume 67, issue 2, p. 28 (4
, published
    December, 2002 (required to pay for entire report)
   Jikarta Post, copyright by World Sources, Inc. August 05, 2002,
    Internet Banking: Is it Really Safe and Worth it?
   Business Source Premier, December 17, 2002, Vol. 167, Issue 240,
    Online Banking Focus Shifts to the Essentials, by Stoneman, Bill
   Business Source Premier, November 22, 2002, Vol. 167, Issue 225,
    Branch Personnel Lead Customers to the Web, Stoneman, Bill

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