Disadvantages on E-banking by jadakiss

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•   What is E-banking?
•   Development of E-banking
•   Advantages of the E-Banking
•   Disadvantages and Risk of E-banking
•   Precaution of risk and security
•   Persecutions
      What is E-banking?
The provision of banking service through
electronic channels and the customer can
access the data without any time and
geographical limitation.
   Development of E-banking
  1980s :
- Rapid development of the Internet
- TCP/IP system (communication system)
- E-commerce
    Development of E-banking
  Early 1980s :
- Access to their accounts with the
  computer of the bank .
   Development of E-banking
 May 1995 :
 Wells Fargo - the first bank in the world to
 offer customer access to their accounts
 over the internet .

• Allows customer to see their accounts
    Development of E-banking
  Hong Kong (September 1999 ):
  Bank of East Asia - first launched Internet
• Mortgage applications , personal loans
  and stock trading
• Basic banking functions
Distribution of Three Types of Internet

• 35 institutions
- 80% of total
  customer deposits

- 60% of total assets of
   Hong Kong banking
Growth of Internet Banking Accounts

• Personal internet banking accounts grew 12.5%
 • Business internet banking accounts grew 53.3%
Distribution of Internet Banking among
             35 Institutions

  • Six major institutions are serving :
  - 78% of all personal internet banking accounts
  - 66% of all business internet banking accounts
       Advantages of E-banking

•   Benefits for Banks

•   Benefits for Small to Medium

•   Benefits for Customers
           Benefits for Banks

•   Larger customer coverage

•   Reducing the costs of operations

•   Promoting their services and products

•   Increasing the customer satisfaction and
    providing a personalized relationship with
Benefits for Small to Medium Businesses

 •   To run its operations more effectively

 •   Lower cost than traditional financial
     management mechanisms
       Benefits for Customers
- 24 hours a day, seven days a week

- Reducing transfer fees

- Faster circulation of assets

- Fostering competition in financial market
            Benefits for Customers

- communicate easily

- Abolishing the uses of paper

-   Offering one-stop-shop solutions
             Brokerage Services

• To create a group
of investment to

• To learn about
companies’ financial
performance online
Automatic Teller
Machine( ATM )
• First electronic channel
  introduced to HK

• Accepting deposits and
  dispenses cash

• Convenient in handling
A Demonstration of Paying Tax Online of HSBC
Step 1

         - Click “Add New Merchant”
A Demonstration of Paying Tax Online of HSBC

 - Choose the category, merchant and bill type
 - Insert the bill payee account number
Step 2

A Demonstration of Paying Tax Online of HSBC

  • Choose the account that you want to transfer
  • Insert the amount of fund that you would like to
  • Choosing the date of transfer
Disadvantages on E-banking
 •A need for customer skill to deal with
       computers and browsers.

E.g. Elderly, Housewives → Inconvenient

 •Site change it will make the customer
     have some confusion or delay.
             •Security Risk
           Security Risk

• Increasing number of fraudulent bank
• Fake emails purporting to be sent from
• Use of Trojan Horse programs to capture
  user IDs and passwords
   Fraudulent Bank Websites

• A suspicious bank website:
• Original bank website
• The website was
  believed to aim
  to trick persons
  into disclosing
  their sensitive
  personal information.
             Fake Emails

• Email send from
  Fraudulent bank
• Verify the
  personal information
• Guide customer
  enter the fraud link
• Disclosing their
  ATM card numbers
  and their passwords
         Viruses and Worms
       -Trojan Horse Program
• When we open
  some suspicious
  websites or email
• Trojan Horse Program
  will install our
  computer secretly
• Hidden in the computer
• When you access
  bank websites
• Capture our
  account and
  the password
For Bank:

• Should provide specific guidance to their
For Customers :
• Should not disclose their customer IDs
  (e.g., account numbers) or passwords to
  anyone else.
• Periodically change their passwords
• Should promptly log out from the service
• Should regularly check their account
  balances and statements to identify
  unusual transactions.
• Do not access Corporate Cyberbanking
  through public terminals.
• To safeguard your computer from any
  other hacker attack, install anti-virus and
  anti-spyware software on your computer
  and update it regularly.
         Case From Newspaper
• Don’t use the hyperlink to
  login to the website of

• Should deeply check the
  postscript of the website

• Observe that is it have the
  encryption and compare
  the login account of
  encryption cert is equal to
  the bank.
Multiple Security
Step 1

• Unique ID and PIN to login
Step 2

• Unique Singer PIN to authorize transaction
Step 3

   • 128-Bit SSL & java applet guarantee
     end-to-end encryption
Step 4

   • Optional use of digital certificate to
     login and sign transaction
The End

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