Buy eBook. Buy Softcover. FAQ Policy. About this book The world of banking and financial services is in the midst of dramatic change, moving away from traditional "brick and mortar" branches and focusing on new delivery channels, to improve customer service and give hours-a-day access to information and transactions. Show all.
Electronic Banking - The Ultimate Guide to Business and Technology of Online Banking | | Springer
Guide to Online Banking Pages Finding the right bank Pages Banking in the Future Pages Are Banks making the Most of it? Pages Net Banking Benefits! Sheer Acceleration Pages Internet Banking in Europe Pages Home Banking without Breaking the Bank Pages Bringing Remote Banking into the Mainstream Pages Anytime, Anywhere Banking: Dream or Reality?
Remote Banking Solutions Pages That might sound a fairly arcane feature but anything that can cut time off your tax returns is worth its weight in… well, tax returns. The unconscious filtering that lets you surf the Web without being distracted by banner ads and pop-ups also comes into play on banking websites. Banks push their offers on their home pages and customers brush past them on the way to the password field and their balance.
So banks push their offers harder. Sometimes they add irritating interstitials between sign-in and statement, but sometimes they also improve their offers, promising super-low interest rates on loans and incentives for opening new accounts. Banks do place special offers on their ebanking platforms. You pay to use a bank. But you still pay. But you can find out. On every ebanking platform is a link, buried in one of the menus, that lists your rates and your fees.
Customers who use ebanking platforms tend to use the same set of features: account tracking, bill paying, and money transfers. But ebanking platforms can be flexible and sometimes provide features that can be very beneficial. Many of those features though, carry risks. The Internet has brought banks into every home. What used to be an institution that could only be visited under the watchful eyes of security guards and closed circuit television now has millions of separate entrance points.
It stores information on customers, including the amount of money they own, in servers protected by little more than passwords and firewalls. Instead of pulling a stocking over their face and sawing off a shotgun to rob a bank, criminals just have to figure out how to hack into a website or app and make a transfer. The same processes that has saved banks money and made banking easier for customers has also made life easier for a new, smart kind of criminal. In , Guardian Analytics, a security firm that specializes in identifying suspicious behavior in bank accounts, tracked a number of attacks made against its customers.
The fraudster would enter a username then press the Forgotten Password button challenge. If the bank sent a confirmation email, the fraudster might hack the email account and attempt to intercept the message but usually they could change the password and access the account without receiving the confirmation. Instead, they roamed the account and looked for information such as the account summary, the bill pay history and check images. They then used that information to attempt offline fraud, including faxing wire requests, asking for transfers through the call center, and check fraud.
What was remarkable about that attempt at online banking fraud was the vulnerability of the system. Other fraudsters tend to be more sophisticated. The gang would receive account details from corrupt bank employees but they would also cold call victims. Usually, though, the act of hacking online bank accounts tends to be much simpler. Hackers might send out millions of phishing emails that appear to come from banking institutions. Some viruses too, are capable of recording key strokes, including those used to log into a bank account. When the main way into an online account consists of nothing more than a username and password, the gateway will always show a certain amount of vulnerability.
While hacking into an online bank account is certainly possible for a sophisticated and determined fraudster, the protections are also relatively simple. If a bank calls you and asks for personal information, hang up and call back. You should also make sure that your anti-virus software is installed and up to date so that it squishes any viruses that make it through email filters before they can do any harm.
The chances of that happening might be small, but it is worth remembering that a public place is not the right location to look at information as confidential as your bank account. Finally, over the last few years, ebanks have tried to improve the accessibility of their websites, sometimes at the expense of security.
Bank Of America, for example, used to demand three fields of confidential information as well as a passcode before granting access. Those demands have since been reduced. You may find that the password requirements at your online bank are now less onerous than those demanded to see your cellphone bill.
Passwords might not require capital letters, have a minimum limit on character numbers or require non-alphanumeric characters. That makes it easy to use the kind of pet names or nicknames that are easy to remember… and very easy for a hacker to either guess or learn. A better solution is to use a unique password for your online bank account and keep it stored in an encrypted form. In March , The Guardian newspaper wrote about a couple in the UK who had hired a contractor to build an extension to their home.
A few days later, the couple received a second message from the same employee, informing them that the company had changed its bank and needed to update the payment details. The second email had been fake.
Incidents like these are rare and are the result of weaknesses in email security rather than in banking security. Whenever you receive payment details on an invoice, confirm that those details are coming from a company that you expect to pay, and pay attention to any discrepancy in the documentation. A single letter might just be the difference between a genuine payment demand and a fraudulent request.
Around 70 million smartphones are lost each year. From the app alone they can see where the telephone owner banks.
We take the convenience of carrying a mobile phone for granted and we think too lightly of the possibility that a device worth nearly a thousand dollars could be stolen or left somewhere. We should remember just how much personal information it contains and make sure that that information is protected. Fortunately, even if the owners of 70 million mobile devices a year underestimate the chances that they might lose their phones, the manufacturers of those devices understand the risks. They provide plenty of tools to make it hard for their phones to be used once taken or found. If someone does take your phone, the only thing they should be doing is trying to get in touch with you to return it.
And as soon as you discover that your phone is lost, make sure that you log on to your bank account from a different device and change the password. Before the days of online banking, customers had few choices about where they banked. There might be just two or three different banks in their town, and they chose the one where they opened an account to deposit their allowance when they were kids. But with those extra choices come extra complications.
In the run up to the financial crisis of , interest rates in Iceland reached 15 percent. Savers looking at low rates in their own countries sent their savings to Icelandic ebanks they found online… only to see their savings vanish when the banks collapsed. Had they kept their funds in banks in their own countries, they would have benefitted from laws that protected retail customers. In Iceland they had far less protection. Having a wide choice of ebanks in which to store your funds is a benefit of the rise of ebanking.
But with that benefit comes responsibility. They need to know which laws govern the bank and what sort of customer protections they can enjoy. Collapses are rare but you should know what would happen to your money if the bank disappears. The rise of online banking has increased that risk by offering additional entry points to bank accounts and by moving the responsibility of guarding those entry points to customers. Some simple precautions are all it takes to keep an online bank account safe. Ebanking has come a long way since the early days of dedicated terminals and limited subscription services.
But the development never stops. Ebanking continues to develop and grow, finding new ways to serve customers and make online financial management easier than ever. The biggest battle will always be over security. As ebanks add new safeguards, fraudsters will continue to look for ways around them. The announcement in September that Yahoo had been the victim of the biggest hack ever revealed that the personal information of million email accounts were in the hands of international criminals.
Some of those passwords would also have been used on banking websites and not all of those account holders would have responded by rushing to their online bank accounts and changing them. With each new announcement of personal information compromised by a hack, the risk rises and ebanks and their security firms respond by putting up a new layer of security—and new ways to implement that security.
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At the end of , for example, researchers began rolling out GOTPass, an authentication system that swaps passwords for image selection. Users select a username then draw a shape on a pattern lock screen. The system displays 30 images covering four random themes and the user selects one image for each theme. When the user logs in, they enter their username and lockscreen pattern then have to identify two of their selected images from a page of decoy images, entering a code associated with the pictures. The researchers found that the images were easy to remember but the random shuffling, limited tries and change of image codes meant that of attempts to hack, only eight were successful.
If the Internet has changed the way we live, the rise of mobile devices has changed the Internet. Institutions that saw the change coming and got ahead of it, like Facebook which now receives more than half its traffic on smartphones and tablets, survived and thrived. Companies, like Microsoft, that were slow to adapt soon found themselves struggling and losing dominance.
Banking institutions have largely embraced digital banking, but only up to a point. The apps produced by ebanks provide all of the services you might expect. Customers can review balances, order credit cards, pay bills and even deposit checks, all of which make up the most popular functions of an ebank. But there is more that they can do and as banks experiment with different options, we can expect to see other banks follow suit. Simple, for example, is an ebank with no physical branches that has put some extra thought into the services offered by its mobile app.
In addition to all of the usual features, the app also makes saving easy by allowing to customers to set a goal and put aside funds until they reach it. An amount at the top of the screen indicates how much is available to spend that month, taking into account other savings plans such as for rent or bills.
The ebanking services currently provided by apps may also integrate with other commonly used apps. They can also pay bills, send money to friends, buy tickets, take out loans and even make investments. For China, the integration of social media with ebanking is complete.
Mark Zuckerberg has certainly noticed. Whether that initial foray into ebanking spreads into a more integrated banking service will depend on whether the banks want to pull people away from their own apps, and whether users trust sites like Facebook with their financial information. Not all of those features are likely to find their way into banking apps, and not all of them will be noticed by users. Other platforms with large user lists were able to use those demographics to set up processes to move money between contacts. Some ebanks have now caught up. As more people use peer-to-peer payments, expect banks to bring that function forward and make it more prominent.
Banks face a challenge when it comes to developing ebanking services.
Their ebanking platforms and apps might be built by third party contractors or by internal teams with weak linkage to the finance departments and banking customers. That makes development slower than it should be and innovation less sharp than it might be.
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But banks know they have to keep up. As long as customers continue to use banking apps, expect to see banks continue to look for ways to secure and refine them. Ebanking may well be the most important development to hit banks since the check book and the credit card.