E-COMMERCE
E-Commerce is the use of Internet and the web to transact business but
when we focus on digitally enabled commercial transactions between
and among organizations and individuals involving information systems
under the control of the firm it takes the form of e-business.
1995: Dell and Cisco begin to aggressively use Internet for commercial
transactions. eBay is founded by computer programmer Pierre Omidyar as
AuctionWeb.
1998: Electronic postal stamps can be purchased and downloaded for printing
from the Web.
1999: The peer-to-peer file sharing software Napster launches. ATG Stores
launches to sell decorative items for the home online.
2002: eBay acquires Pay Pal for $1.5 billion. Niche retail companies CSN Stores and
NetShops are founded with the concept of selling products through several
targeted domains, rather than a central portal.
2009: Zappos.com acquired by Amazon.com for $928 million. Retail Convergence,
operator of private sale website RueLaLa.com, acquired by GSI Commerce
for $180 million, plus up to $170 million in earn-out payments based
on performance through 2012.
2010: US e-Commerce and Online Retail sales projected to reach $173 billion, an
Increase of 7 percent over 2009
BUSINESS APPLICATIONS
# Newsgroups # Teleconferencing
# E-Banking
E-BANKING
E-banking is defined as the automated delivery of new and traditional banking
products and services directly to customers through electronic, interactive
communication channels. Customers access e-banking services inculcates
using an intelligent electronic device, such as a personal computer (PC),
personal digital assistant (PDA), automated teller machine (ATM), kiosk, or
Touch Tone telephone.
Figure
1:
Third-
Party
Provider
Hosted
E-Banking
Diagram
E-BANKING (Continued)
Figure
2:
In-House
E-Banking
Diagram
RISKS ASSOCIATED WITH E- BANKING
Security vulnerabilities are part of web reality. The success of
the internet has attracted a rising number of hackers and other
scallywags. Thus, the internet, because of its low cost, global
reach and versatility raises the stakes for the banks – both in
terms of the opportunities it presents as well as the risks.
•Strategic Risk
•Operational Risk
•Liquidity & Pricing Risks
•Reputation Risk
•Legal Risk
RISKS ASSOCIATED WITH E- BANKING
(Continued)
• Physical Security
• Network Security
• Back-up
• Encryption
• Message Authentication
• Digital Signature
• Algorithms & Cryptographic Mechanisms
• Three Factors Authentication
COMMON CRIMES ON E-BANKING
Some of the market factors that may drive a bank’s strategy towards internet
banking include the following:
•Competition
•Cost efficiencies
•Geographical Reach
•Branding
•Customer Demographics
21ST CENTURY ONLINE APPLICATIONS OF E-BANKING
• Call Center
• Cash deposit which will originally deposit very next day of deposit
that means, people do not need to go to the branch for every
occasion.
• Mini statement which contain 8-10 previous transaction records
• Can able to pay utilities bill
• Withdraw money by using VISA, PLUS, MASTER, MAESTRO and
other credit card
• Withdraw money from dollar account which gives taka by converting
foreign currency.
SWOT ANALYSIS
THE BARRIERS OF E-BANKING IN BANGLADESH
• Unreliable connectivity and low bandwidth (9K);
• Poor telecommunication infrastructure with limited fixed-line
access;
• Very minimum number of users of web sites;
• High price of computer and hardware
• Lack of technically efficient personnel;
• Lack of investment in hardware and software;
• Electronic payments and inter-bank connectivity is poor
• Small number of Credit Card users;
• Limitations of supportive legal system
• Absence of cyber law
• People's mindset and very slow and expensive Internet services
• Enterprise managers' are lack of initiative
• Bureaucratic complexities
• Lack of awareness at government level of E-Commerce issues
RECOMMENDATIONS
• There should be an EFT (Electronic Fund Transfer) Gateway
• Business organizations like FBCCI, DCCI, MCCI, and BGMEA can play a
significant role in promoting E-Commerce in Bangladesh.
• National ICT policy, 2002 and enactment of the ICT Act, 2005 is required to
enhance the implementation of E-Banking
CONCLUDING REMARKS