Escolar Documentos
Profissional Documentos
Cultura Documentos
CUSTOMER PERSPECTIVE.
Contents
Chapter
Page No
INTRODUCTION
3-21
REVIEW OF LITERATURE
22-24
RESEARCH METHODOLOGY
25-29
E-BANKING SERVICES
45-55
56-64
Chapter 1
Introduction
Earlier people would be tired standing in long queue waiting for a passbook to
be updated or they would wait for a next day for the demand draft to be
prepared but now internet technology has invaded the portals of our banking
institution and as the clich goes everything will just be a click away. No doubt
innovations like tele banking and automated teller machines (ATM) have
considerably put customers at ease on the recent past. But with net banking
the customer will be able to transact with the help of a mouse and his visits to
the neighborhood bank will become a thing of the past.
E-banking simply means the automated delivery of new and traditional
banking products and services directly to customers through electronic,
interactive communication channels. E-banking includes the systems that
enable financial institution customers, individuals or businesses, to access
accounts, transact business, or obtain information on financial products and
services through a public or private network, including the internet.
In the age of electronic technology the regular application of computing,
wireless communication, networking etc in the banking field has brought
revolutionary change in the traditional ways banks do business .today your
bank can serve you at home, or allow you to serve yourself from anywhere.
You can draw your money from ATMs, you can check your account through
internet and you can phone. The bank to send you representative. Not only
have that, your physical banked that is still around suddenly seems to be
doing a lot more things than just banking. It is technology that is making all
this possible.
Internet banking has gained wide acceptance internationally and seems to be
fast catching up in India with more and more banks entering the fray. That is
why, most, most modern banks instead of merely dealing with financial
deposits and loan apply promote, and distribute the want-satisfying products.
New horizons
The important factor that is causing the shift in the industry is that of
conveniences for the consumer. People need timely access to banking
services and have less time to spend at banks. And prefer the convenience of
long distance banking.
People were accustomed to associating convenience with doing business in
their neighborhood and not traveling to bank across town.Now however
society has a different definition of bank convenience.Also we should mention
it directly due to mergers that banks are able to offer more full service
branches and ATM machines. This is more convenient to customer and create
bank loyalty.
Increased used in ATMs, the growing use of home and office computers, fax
machines, and point of sale terminals allowing consumers to make
transaction electronically is now considered convenient. Thus branch location
is no longer a priority from the consumers view.
In contrast, Indian banks have an insignificant internet banking record. ICICI
bank kicked off online banking way in 1996 and a host of other banks soon
followed suit
Today banks are looking at newer ways to make a customer banking
experience more convenient, efficient and effective. They are using new
technology tools and techniques to identify customer needs and are offering
tailor- made products to match them. Earlier bank would decide when and
where they wanted customer interfaces, now customers decide when and
where they will access banking channels. The services which can be availed
of as of date, centralized operations and process automation using core-
DRIVERS OF CHANGE
Advantages previously held by large financial institutions have shrunk
considerably. The Internet has leveled the playing field and afforded open
access to customers in the global marketplace. Internet banking is a costeffective delivery channel for financial institutions. Consumers are embracing
the many benefits of Internet banking. Access to one's accounts at anytime
and from any location via the World Wide Web is a convenience unknown a
short time ago. Thus, a bank's Internet presence transforms from
'brouchreware' status to 'Internet banking' status once the bank goes through
a technology integration effort to enable the customer to access information
about his or her specific account relationship. The six primary drivers of
Internet banking includes, in order of primacy are:
Improve customer access
Facilitate the offering of more services
Increase customer loyalty
Attract new customers
Provide services offered by competitors
Reduce customer attrition
services.
Foreign & Private banks are much advanced in terms of the number of sites
& their level of development.
EMERGING CHALLENGES
Information technology analyst firm, the Meta Group, recently reported that
"financial institutions who don't offer home banking by the year 2000 will
become marginalized." By the year of 2002, a large sophisticated and highly
competitive Internet Banking Market will develop which will be driven by
Demand side pressure due to increasing access to low cost electronic
services.
Emergence of open standards for banking functionality.
Growing customer awareness and need of transparency.
Global players in the fray
Close integration of bank services with web based E-commerce or even
disintermediation of services through direct electronic payments (E- Cash).
More convenient international transactions due to the fact that the Internet
along with general deregulation trends eliminates geographic boundaries.
Move from one stop shopping to 'Banking Portfolio' i.e. unbundled product
purchases.
Certainly some existing brick and mortar banks will go out of business. But
that's because they fail to respond to the challenge of the Internet. The
Internet and its underlying technologies will change and transform not just
banking, but all aspects of finance and commerce. It represents much more
than a new distribution opportunity. It will enable nimble players to leverage
their brick and mortar presence to improve customer satisfaction and gain
share. It will force lethargic players who are struck with legacy cost basis, out
of business-since they are unable to bring to play in the new context.
Banking Securely: Online Banking via the World Wide Web provides an
overview of Internet commerce and how one company handles secure
banking for its financial institution clients and their customers. Some basic
information on the transmission of confidential data is presented in Security
and Encryption on the Web. PC Magazine Online also offers a primer: How
Encryption Works. A multi-layered security architecture comprising firewalls,
filtering routers, encryption and digital certification ensures that your account
information is protected from unauthorised access:
Firewalls and filtering routers ensure that only the legitimate Internet users
are allowed to access the system.
Encryption techniques used by the bank (including the sophisticated public
key encryption) would ensure that privacy of data flowing between the
browser and the Infinity system is protected.
Digital certification procedures provide the assurance that the data you
receive is from the Infinity system.
Concept of E-Banking
DEFINITION
OF E-BANKING
versa. While some banks already have systems to meet this requirement,
others are at various stages of implementation.
Effecting payments through electronic means constitute e-payments. Various
forms of e-payment are in existence such as E-cheque, card based payments
(credit, debit and smart cards) and EFT. All these are available in the country
and the large scale usage of these are dependent on the levels of technology
at banks and their ready acceptance by the constituents of banks.
10
Wholesale Services
Account management
Account management
Cash management
Small business loan
applications, approvals, or
E-BANKING
COMPONENTS
11
12
Banking
Solutions
become
truly
Yodlee, Corillian, eBalance and VerticalOne that lets you log into the
website and track information as diverse as bank and credit card
balances, value of investments, and frequent-flier miles from several
sites, each of which has its own username and password.
INNOVATION: Nowadays, banks need to depend on product
innovation, expanding their range of their products and service
offerings. Apart from just online accounts, e-banks would need to tailor
specific products for the Internet, like online bill presentment or credit
card with instant online approval. Many Internet Banks like Egg have
taken the lead in offering innovative products like Egg card a credit
card that features an introductory zero percent interest rates.
STRATEGY
14
15
16
MONITORING
AND
ACCOUNTABILITY
AUDIT
An important component of monitoring is an appropriate independent audit
function. Financial institutions offering e-banking products and services
17
GUIDELINES
18
AUTHENTICATING
E-BANKING CUSTOMERS
The
CIP must be written, incorporated into the institutions Bank Secrecy Act/AntiMoney Laundering program, and approved by the institutions board of
directors. The CIP must include risk-based procedures to verify the identity of
customers (generally persons opening new accounts). Procedures in the
19
program should describe how the bank will verify the identity of the customer
using documents, non documentary methods, or a combination of both. The
procedures should reflect the institutions account opening processes
whether face-to-face or remotely as part of the institutions
e-banking
services.
As part of its non documentary verification methods, a financial institutions
may rely on third parties to verify the identity of an applicant or assist in the
verification. The financial institution is responsible for ensuring that the third
party uses the appropriate level of verification procedures to confirm the
customers identity. New account applications submitted on-line increase the
difficulty of verifying the application information. Many institutions choose to
require the customer to come into an office or branch to complete the account
opening process.
Institutions conducting the entire account opening process through the mail or
on-line should consider using third-party databases to provide:
Positive verification to ensure that material information provided by an
applicant matches information available from third-party sources
Logical verification to ensure that information provided is logically
consistent, and
Negative verification to ensure that information provided has not
previously been associated with fraudulent activity (e.g., an address
previously associated with a fraudulent application ).
Authenticating Existing
Customers
20
CONFIDENTIALITY
laws
and
regulations,
particularly
the
privacy
requirements
TRANSACTION
MONITORING
AND
CONSUMER
DISCLOSURES
The general requirements and controls that apply to paper-based transactions
also apply to electronic financial services. Consumer financial services
regulations generally require that institutions send, provide, or deliver
disclosures to consumers as opposed to merely making the disclosures
available. Financial institutions are permitted to provide such disclosures
electronically if they obtain consumers consent in a manner consistent with
the requirements of the federal Electronic Signatures in Global and National
Commerce Act (the E-Sign Act). The Federal Reserve Board has issued
interim rules providing guidance on how the E-Sign Act applies to the
consumer financial services and fair lending laws
and regulations
21
Pyun et al. (2002) assessed the status of Internet banking in the U.S.,
Japan and Europe, Guar (2001) investigated Internet banking in Romania,
and Waite and Harrison (2002) explored factors contributing to customer
satisfaction and dissatisfaction with the online information provided by retail
banks. Research on the adoption of Internet banking has been also active in
the past few years. A significant part of this work has also focused on the
process by which adoption occurs or the demand aspect of diffusion (Brown,
1981; Roger, 1995). In a study on the adoption of Internet banking in
Australia, Sathye (1999) reported that security concerns and the lack of
awareness stand out as the main reasons for the failure to adopt Internet
banking by customers. Polatoglu and Ekin (2001) undertook a similar study
on the acceptance of Internet banking services in Turkey while Balachandher
et al (2000) examined the factors that affect the adoption of Internet banking
in Malaysia.
Jun and Cai (2001) attempted to identify key quality attributes of the
Internet banking products and services by analyzing Internet banking
customers comments on their banking experiences. Finally, Howcroft et al
(2002) explored consumers existing financial services behaviour and
22
23
protocols and consumer reluctance in rural sector. Although many banks have
started internet banking services the slow pace will continue until the critical
mass is achieved for PC, inherent connections and telephones. The economy
is classically trying to develop and catch up with leading economies.
critical
for
the
success
in
e-banking
are:
quick
responsive
25
Chapter 3
Research Methodology
Objectives Of Study
To access the present scenario of the services of E-Banking.
To study the scope of E-Banking in future.
To study the problem faced by the consumers in availing the Banking
Services.
To check the satisfaction level of customers for using Net Banking
Services.
To get feedback from customers regarding usage improvement of Net
Banking.
Research Methodology
Research inculcates scientific and inductive thinking and it promotes the
development of logical habits of thinking and organization. The role of
research in several fields of applied economics, whether related to business
or to economy as a whole has generally increased in modern times. Research
in common parlance refers to a search for knowledge. It can also be defined
as scientific and systematic search for pertinent information on specific topic.
It is a way to systematically solve research problem. It may be understood as
a science of studying how research is done scientifically. In it we study the
various steps that are generally adopted by researcher in studying his
research problem along with the logic behind them. The research frame for
the study is detailed below. It is necessary to explain the methodology for the
research work done. The aim of research is to find out the truth which is
hidden or which has not been discovered as yet. While conducting this
research I have used primary and secondary source of data.
26
The main purpose of this chapter is to present the method and procedure
used in execution and conduction of study. In order to facilitate the chapter is
divided into following sections.
Selection of Method:
The present study is not subjected to experimentation. A survey was adopted
to carry out research.
Sample size:
A random sample size of 50 respondents has been drawn.
Sample unit:
Individuals having bank account and is using Internet Banking.
Sampling Technique:
For the purpose of the study a non probability sampling technique i.e
convinces sampling is undertaken.
27
X = Variable in question
Standard deviation
Standard deviation is positive square root of mean of the squares of
deviations of variable from their arithmetic mean and is denote by:
(Standard deviation) = (X-X)
N
Where n is number of observations and X = mean.
= f(X -X)
28
Z- Test
If sample size is greater than 30 then it will be considered as large sample.
While testing the significance of statistic, the concept of standard error is
used.
(Standard deviation)
= f(X - X)
f
Steps:
Parametric Test
Two Tailed
Level of significance
Ho : Xs = Xp
H : Xs Xp
Z =
Xs - Xp
S.E
29
5) LIMITATIONS:
The result is based on primary and secondary data that has its own
limitations.
The respondents were not at all serious while answering the questions.
30
Chapter 4
Role of RBI in Computerisation of Banks in India
Computerisation became popular in the western countries right from the
Sixties. Main Frames were extensively used both by the Public Institutions
and Major Private Organizations. In the Seventies Mini Computer became
popular and Personal Computers in early Eighties, followed by introduction of
several software products in high level language and simultaneous
advancement in networking technology. This enabled the use of personal
computers extensively in offices & commercial organisations for processing
different kinds of data.
However in India organised Trade Unions were against introduction of
computers in Public Offices. Computerisation was restricted to major scientific
research organizations and Technical Institutes and defense organizations.
Indian Railways first accepted computerisation for operational efficiency.
The Electronics Corporation of India Ltd. was set up in 1967 with the objective
of research & development in the fields of Electronic Communication, Control,
instrumentation, automation and Information Technology. CMC Ltd (Computer
Maintenance Corporation of India Ltd.) was established in 1976 to look after
maintenance operations of Main Frame Computers installed in several
organisations in India, to serve the gap, when IBM left India, due to the
directive of the then Central Government. Rapid development of business and
industry brought manual operations of data, a saturation point. This acted as
an overload on the growing banking operations. Government owned banks in
general found the "house-keeping" unmanageable. Several heads of
accounts in particular inter-bank clearing and inter-branch reconciliation of
accounts went totally out of control.
31
Low productivity pushed cost of wages high and employees realized that
unless they agreed for computerisation further improvement in their wage
structure was not possible.
Against this backdrop, the Committee on Computerisation in Banks was set
up once again under Dr.Rangarajan's Chairmanship to draw up a perspective
plan for computerisation in banks. In its report submitted in 1989, the
Committee acknowledged the gains of the initial efforts and sought to move
away from the stand-alone dedicated systems to an on-line transaction
processing environment in branch banking. It recommended that the thrust of
bank computerisation for the following 5 years should be to fully
computerization the operations at both the front and back offices of large
branches then numbering around 2500.
ii.
iii.
Record keeping
iv.
Modalities for a satellite based WAN for banks and financial institutions
with the necessary security systems by banks and other financial
institutions, to ultimately develop a sound and an efficient payments
system
32
v.
ii.
iii.
Technology
Division
which
actually
implements
the
33
ii.
iii.
Legal Issues
a. Considering the legal position prevalent, there is an obligation on the
part of banks not only to establish the identity but also to make
enquiries about integrity and reputation of the prospective customer.
Therefore even though request for opening account can be accepted
over Internet, accounts should be opened only after proper introduction
and physical verification of the identity of the customer.
b. From a legal perspective, security procedure adopted by banks for
authenticating users needs to be recognized by law as a substitute for
signature. In India, the Information Technology Act, 2000, in Section
3(2) provides for a particular technology (viz., the asymmetric crypto
34
of
SBI
The origin of the State Bank of India goes back to the first decade of the
nineteenth century with the establishment of the Bank of Calcutta in
Calcutta on 2 June 1806. Three years later the bank received its charter
and was re-designed as the Bank of Bengal (2 January 1809). A unique
institution, it was the first joint-stock bank of British India sponsored by the
Government of Bengal. The Bank of Bombay (15 April 1840) and the Bank
of Madras (1 July 1843) followed the Bank of Bengal. These three banks
remained at the apex of modern banking in India till their amalgamation as
the Imperial Bank of India
on
27
January
1921.
was,
however,
shaped
by
ideas
culled
from
similar
35
in the relations of the Indian economy to the economy of Europe and the
global economic framework.
Bank
of
Bengal
Bank
the
of
president
of
the
board.
Bombay
36
Imperial
Bank
of
India
When India attained freedom, the Imperial Bank had a capital base
(including reserves) of Rs.11.85 crores, deposits and advances of
Rs.275.14 crores and Rs.72.94 crores respectively and a network of 172
branches and more than 200 sub offices extending all over the country.
In 1951, when the First Five Year Plan was launched, the development of
rural India was given the highest priority. The commercial banks of the
country including the Imperial An act was accordingly passed in
Parliament in May 1955 and the State Bank of India was constituted on 1
July 1955. More than a quarter of the resources of the Indian banking
system thus passed under the direct control of the State.
TECHNOLOGY
UPGRADATION HIGHLIGHTS
in
customer
service.
ATM SERVICES: There are 4633 ATMs on the ATM Network including
3181 ATMs of SBI and 1452 from the 7 Associate Banks and Subsidiaries.
These ATMs are located in 1521 centers spread across the length and
breadth of the country, thereby creating a truly national network of ATMs
with an unparalleled reach. Value added services like ATM locator,
payment of fees for college students, multilingual screens, voice over and
drawl of cash advance by SBI credit card holders have been introduced.
37
boundary less basis. 1994 branches, covering 555 centers, are extending
INB service to their customers. All functionalities other than Cash and
Clearing have been extended to individual retail customers. A separate
Internet Banking Module for Corporate customers has been launched and
available at 1305 branches. Bulk upload of data for Corporate, Interbranch funds transfer for Retail customers,
Online payment of Customs duty and Govt. tax, Electronic Bill Payment,
SMS Alerts, E-Poll, IIT GATE Fee Collection, Off-line Customer
Registration Process and Railway Ticket Booking are
features
the
new
deployed.
Govt. funds,
is
available.
STEPS: Under STEPS, the banks electronic funds transfer system, the
Products offered are eTransfer (ET), eRealisation (ER), eDebit (CMP) and
ATM reconciliation. STEPS handles payment messages and reconciliation
simultaneously..
branches.
38
B.
PROFILE OF
HDFC
BANK
Bank in
January
1995.
Promoter
HDFC is India's premier housing finance company and enjoys an impeccable
track record in India as well as in international markets. Since its inception in
1977, the Corporation has maintained a consistent and healthy growth in its
operations to remain a market leader in mortgages. Its outstanding loan
portfolio covers well over a million dwelling units. HDFC has developed
significant expertise in retail mortgage loans to different market segments and
also has a large corporate client base for its housing related credit facilities.
With its experience in the financial markets, a strong market reputation, large
shareholder base and unique consumer franchise, HDFC was ideally
positioned to promote a bank in the Indian environment.
Business
Focus
39
Network
Technology
HDFC Bank operates in a highly automated environment in terms
of information technology and communication systems. All the
bank's branches have connectivity which enables the bank to offer
speedy funds transfer facilities to its customers. Multi-branch
access is also provided to retail customers through the branch
network and Automated Teller Machines (ATMs).
The Bank has made substantial efforts and investments in
acquiring the best technology available internationally to build the
infrastructure for a world-class bank. In terms of software, the
Corporate Banking business is supported by Flexcube, while the
Retail Banking business by Finware, both from i-flex Solutions Ltd.
The systems are open, scaleable and web-enabled.
The Bank has prioritized its engagement in technology and the
internet as one of its key goals and has already made significant
progress in web-enabling its core businesses. In each of its
businesses, the Bank has succeeded in leveraging its market
position, expertise and technology to create a competitive
advantage and build market share.
Business
Profile
40
key
a) Wholesale
business
areas :-
Banking
Services
b) Retail
Banking
banks.
Services
Mobile
Banking.
The HDFC Bank preferred program for high net worth individuals,
41
c)
Treasury Operations
Within this business, the bank has three main product areas - Foreign
Exchange and Derivatives, Local Currency Money Market & Debt Securities,
and Equities. With the liberalisation of the financial markets in India,
corporates need more sophisticated risk management information, advice and
product structures. These and fine pricing on various treasury products are
provided through the bank's Treasury team. To comply with statutory reserve
requirements, the bank is required to hold 25% of its deposits in government
securities. The Treasury business is responsible for managing the returns and
market risk on this investment
portfolio.
services
for
your
convenience...
Banking
numbers
available.
ATM 24-hour banking: Apart from routine transactions, the customer can
also pay his/her utility bills and transfer funds, at any of the banks ATMs
across
the
country
all
year
round.
branches
in
205
cities.
Net Banking: The customer can access his/her bank account from
anywhere in the world, at anytime, at his/her own convenience. The customer
can also view his/her Demat Account through Net
Banking.
International Debit Card: With an ATM card the customer can shop with
all over the country and in over 140 countries with. The customer can spend
in
any
currency,
and
pay
in
Rupees.
from
his/her
cellphone.
Bill Pay: The customer can pay his/her telephone, electricity and mobile
phone bills through the banks
or
Loans
mobile
for
ATMs,
Internet,
phone
phone.
every need
43
PROFILE OF
ICICI BANK
Conduct
and
Ethics
for
its
directors
and
employees.
At October 31, 2004, ICICI Bank, with free float market capitalization* of
about Rs. 220.00 billion (US$ 5.00 billion) ranked third amongst all the
companies
listed
on
the
Indian
stock
exchanges.
44
45
Chapter 5
E-BANKING
SUPPORT
SERVICES
ACCOUNT
AGGREGATION
46
AUTHENTICATION
PAYMENTS
FOR E-COMMERCE
47
Person-to-Person
Payments
48
Online Pay: Using SBI e-PAY the customer can 'see and pay' his/her various
bills online, directly from his/her SBI Account. The customer can pay
telephone, electricity, insurance, credit card and other bills - from the comfort
of his/her house or office, 24 hours a day, 365 days a year! He/she will simply
have to logon to http://www.onlinesbi.com/ to 'see and pay' their bills. The
customer can also get an electronic acknowledgment for every bill paid by
him/her using e-PAY.
Auto Pay: The customer can also set up Auto Pay instructions with an upper
limit to ensure that his/her bills are paid automatically whenever they are due.
The upper limit ensures that only bills within the specified limit are paid
automatically, thereby providing the customer complete control over these
payments.
2. SMS ALERTS
SMS Alerts are the fashionable way to keep track of critical activity on ones
accounts. In a significant step towards enabling anytime-anywhere banking,
OnlineSBI.com now enables its customers to receive alerts on his/her mobile
phone. The customer can ask to be alerted when the balance on his/her
account goes above or below a particular amount; or when a transaction of
greater than a specified amount hits the customers account; or when an
interest is applied on the customers accounts more.Receiving alerts on your
mobile phone is a two-step process.
1. Set your mobile number. Be sure to correctly select the country the mobile
number belongs to.
2. Define your alert criteria; be it balance alert or a transaction alert or an
interest alert.
The bank will now do the hard work of alerting when these events happen to
his/her account.
49
3. ONLINE
BOOKING OF
RAILWAY TICKETS
The customer should follow under noted process for booking of railway
tickets.
Logon to the site of IRCTC www.irctc.co.in
Register yourself on the site (if first time user) or log on with Username and
Password (meant for IRCTC site).
Provide the requisite information i.e. stations (departure & arrival), date and
class of the journey under option of "Plan My Travel and Book
Ticket"
Select your train from the list of trains displayed by IRCTC and click on
"Book Ticket"
Provide passenger details and confirm your address for getting delivery of
tickets. The amount of ticket will be displayed for payment.
Choose payment option "State Bank of India". You will be taken to our site
online SBI.
4.
MUTUAL FUNDS
50
BILL PAYMENT
ICICI Bank Internet Banking is the most convenient channel to manage and
pay the bills anytime, anywhere. No more hassles of personally visiting the
Biller to pay the bills. Its free for all the Customers. The bank has enabled the
billers
in
following
two
modes:
Presentment Type Billers: For these billers, the bill amount and due date will
be presented to them online on http://www.icicibank.com/ and a reminder will
be sent to their on Email.
Payment Type Billers: For these billers the customers can register and pay
any amount immediately
2.
ONLINE
SHOPPING
ICICI Bank has tied up with more than 75 organizations to facilitate online
shopping for all its Internet Banking Customers. The customers Have to
choose their products online and pay conveniently through ICICI Bank
Internet
Banking
Service.
Details...
The
ticket
customers
can
book
their
railway
through
http://www.icicibank.com/pfsuser/icicibank/online/shopping/online_shopping.h
tm# using ICICI Bank Internet Banking. IRCTC will deliver ticket to delivery
address mentioned by the customer.
Details...
The customers can pay their Reliance Info COM bills through Internet
Banking. The customers can visit Reliance Infocomm, view their bill details
and make instantaneous payments.
3.
TICKET
BOOKING
The customers can now book their Railways and Air Tickets Online
The customers can now buy their tickets online and pay using the banks
51
Internet Banking Facility. ICICI Bank has tied up with IRCTC (for Railway
Ticket Booking) and Air Deccan (for Air Ticket booking).
The
1.
salient
All
features
internet
banking
of
the
customers
facility
are
as
under:
can
use
the
facility.
2. For booking tickets, please visit www.irctc.co.in (for railway tickets) and
http://www.airdeccan.net/ (for air tickets). Select your journey date and other
details.
3. On payment option, select ICICI Bank for making the payment. The
customer will be redirected to secured login page of ICICI Bank. After logging
on to the site the customer can see his/her displayed payment amount, and
Payee
4.
Details.
ICICI
BANKS
ONLINE
SHARE
TRADING.
ICICI ban
k also provides the service of online share trading to its customers through
www.icicidirect.com.
FEATURES*
card Payment
Customers can pay their HDFC Bank Credit card dues through this option.
2.
Statement
Download
the customers can download their account statement onto their PC for the
period of 5 months from
3.
Change
the
Customer
given date.
profile
The customers can update their mailing address and all their communication
from bank will go to this new address.
5. Funds Transfer
The customers cant transfer funds between their accounts, even if they are in
different branches/cities. The customer can also transfer funds to any person
having an HDFC Bank account anytime, anywhere, using our Third Party Funds
52
Transfer option. To avail of TPT facility, customer will have to sign the declaration
form, which is available on the Net or at any of the banks branches.
6.
New Fixed
Deposit
Request
The customer can open a Fixed Deposit Account on the Internet. He will just
have to give details regarding the account from which he/she wants to transfer
funds, the amount and terms for the Fixed Deposit, the branch and the relevant
maturity instructions.
7.
Fixed
Deposit
Inquiry
The customers can access details of their Fixed Deposit Account such as
Principal Balance, Term of Deposit, Rate of Interest, Maturity Date, Maturity
Amount and Instructions for Payment.
8.
Demand
Draft*
Request
The customers can issue a DD from their account at special rates. They will just
have to select the account to be debited from and give the bank details of the
amount, location and beneficiary. The bank will even have the Demand Draft
couriered to the customers mailing address. (DDs will be issued only where the
bank has a branch or has an arrangement with a local bank).
address
Net Banking offers a new facility to all its customers. The customer can issue a
Demand Draft on the Beneficiary's name and address of his/her choice. He/she
will just have to just select the account to be debited from and give the bank the
details of the amount and beneficiary's name & address where the customer
want the Demand Draft to be delivered. The Demand Drafts would only be
delivered within India. (DDs will be issued only where the Bank has a branch or
has an arrangement with
a local
Bank).
Note: 1) This facility is only open to users who have registered for Third Party
Transfer (TPT)..
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ATM FACILITY
ATM
in India
SERVICES:
2.
BILL PAYMENT
PaymentsService
Now, the customer can have the luxury of paying his/her telephone, electricity
and mobile phone bills at your convenience. Through the Internet, ATMs, his/her
mobile phone and telephone. LIC insurance premiums can also be paid through
this facility. The customer can also renew your VSNL Internet Account and even
register for a New VSNL Internet Account using Bill Pay, a comprehensive bill
payments solution.
DEBIT
CARD
Easy
HDFC Bank proudly presents the Easy Shop Gold Debit Card. The Easy Shop
Gold Debit Card is the first Gold Debit Card in India. Not only does it replace the
customers ATM card, it also revolutionizes the way he/she spends through a
Debit Card and the customer also gets the benefits that as a Gold Debit Card
Customer.
Cash back*
for every Rs. 100 that the customer will spend, he/she will receive Re. 1 as cash
back. This cash back is valid on all purchases made through the card, at all times
of the year!!!
Zero surcharges at Petrol Pumps
The customer can now use his/her Debit Card at the Petrol Pumps. As a Gold
Card holder, no surcharge would be levied on the customer at the petrol pumps.
Special Offers at Premium Outlets, Hotels and Restaurants*
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the bank has arranged for special offers for its customers, the details of which
are available in the Merchant Booklet.
Insurance covers*
The following are included in the insurance covers
o Death Cover by Air / Road - Sum assured Rs. 5,00,000
o Fire & Burglary for the items purchased under Debit Card (upto 6 months) Sum assured Rs. 50,000
Loss of Baggage Insurance - Sum assured Rs. 20,000
4.
INTERNATIONAL
Easy shop
DEBIT
CARD
Easy shop International Debit Card lets the customer shop and do much more
than he/she could do with his/her ATM Card. It replaces cash, so when one goes
shopping, the customer no longer need to carry cash with him/her. This card can
be used in India and abroad at merchant locations such as shops and
restaurants and to withdraw cash from a widespread network of ATMs. The value
of the payment made or cash withdrawn is instantly debited from his/her account.
What's more, while all purchases and cash withdrawals of the customer are in
the currency of the country he/she is in, his/her account is
debited
in
Rupees!
HDFC Bank offers the following Debit Card programmer in India:
1. Visa in association with Visa International
2. Maestro in association with MasterCard International
5. ONLINE SHOPPING
Net Safe is a unique online payment solution that offers the customers
complete security while shopping on the Internet. With Net Safe, they can
now shop online without revealing their HDFC Bank Credit Card number.
They can now use their HDFC Bank Debit Card also for online purchases.
The customers will have to follow a simple 3-step process to register for Net
Safe using either his/her HDFC Bank Visa Credit or Debit Card. Once
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registered, the customer will have to choose the amount and account he/she
wishes to debit and create as many Net Safe cards as he/she wants. And
after the transaction or a max of 48 hours, the card will cease to exist. All this
comes FREE with the customers HDFC Bank Credit / Debit Card.
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Chapter 6
PROMISES OF INTERNET BANKING
As the potential that the internet held to transform different aspects of our
lives manifested itself, it was forecast that its impact on financial services
such as stock-broking and banking would be especially profound. Banking
transactions could be conducted entirely in a virtual context with no physical
exchange necessary. Also transactions are to a large extent standard with
little, apart from price, difference between banks. For both these reasons
banking was especially well suited to use the Internet.*
1. No physical change
Historically, as the means of payment substituted gold by paper currency and
paper currency by plastic and finally plastic by direct debits, the information
intensity kept increasing. In the case of buying physical goods online, a large
portion of the value to the customer is derived only after the goods are
physically delivered. The internet brings supplemental value by aiding the
search process, making comparisons efficient and automating order
placement and billing. On the other hand, in determining which bank to place
a deposit with, not only can the search be done online but the actual product
delivery (deposit booking) can also be affected online. Since there is high
information intensity and no physical exchange, the internet as a delivery
channel is responsible for delivering a large portion of the value for a
customer. More importantly, the end-to-end process can be completed
entirely online.
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3. Double-edged Sword
Reduced delivery costs and the absence of physical exchange is indicative of
why the Internet held so much promise to turn banking upside down. In
theory, physical branches were not required and the transaction costs over
the Internet were much lower. It was almost obvious that from a banks
perspective this was the way to go. However, the promise of the Internet was
a double-edged sword.
4. Perfect Information
one of the things that the Internet does extremely well is make perfect
information available to all market participants by bringing about efficiencies
in the search process. For buyers of banking services, there are sites that
aggregate information on product offerings from different providers at a single
location
Perfect information would be available to the banks as well. The Internet
makes it
less likely that, for example, an individual could hide a bad credit history from
prospective providers and beat the system by switching providers frequently.
To that extent this superior information-set would enable banks to move away
from portfolio-pricing, where good credits subsidies the bad ones, to a pricing
structure that is based on the customers credit history.
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2. Loyal Customers
In a recent study conducted by Forrester Research, 61% of respondents
claimed that if their banks offered the financial services they wanted, they
would prefer to utilize the banks service (Dixon, 1999). With this knowledge
of consumer interest in mind, banks are moving to offer a hub of financial
services including bill presentment and payment, financial planning, estate
planning, insurance, loans, and brokerage services. The Internet allows for
this convergence of financial services in one previously unavailable central
location. Web sites that offer financial convergence for the customer will
create a more involved banking customer who will more frequently patronize
the banking site and more likely use the services offered. The idea is that by
creating a more loyal customer who depends on a bank for many financial
59
services, more bundling can occur and higher revenue per customer can be
generated.
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4. High-Profit Customers
Some studies suggest that the demographics of Internet banking customers
are enticing. At Wells Fargo bank, online customers have an annual average
income of $75,000 with
Education levels higher than the average Wells Fargo customer (Hoffman,
1999a). Also, this group of customers is more profitable than the bricks-andmortar counterparts.
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discontinued their service for a variety of reasons online banking was too time
consuming(27%); unhappy with customer service (25%); no need or interest
in the service(20%); too costly (11%), and concern for
Privacy (5%). This study also noted that only35% of those who discontinued
the service said that they would try online banking again in the future Such
negative endings about online banking contrast greatly with studies dealing
with online trading. Among online traders, only 3% discontinued the service
and 85% were satisfied with online trading.
of credit cards take up to three weeks time. Next Card announced its arrival
rather dramatically by granting approvals (or declines) for its online credit card
applications in less than 30 seconds. Approved customers could even start
shopping online the same day and need not wait for the physical card to
arrive. By the second quarter of 2001, Next Card crossed the one-million
milestones and established itself as one of the leaders in the online credit
card market.
E-service
Next Card uses the Internet to provide superior service that is also
customized for each customer such as putting a picture of the customers kids
as wallpaper for the card. This creates affinity and, as a JP Morgan analyst
noted, this makes it less likely that the customer will cut up her card and send
it back.
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