Prospects & Challenges of Indian Internet Banking

8th Refresher Course In computer Application, ASC, University of Burdwan

Factors Influencing The Strategies Of Banks In The Post LPG Era

Globalization Deregulation Escalating Competition Changing Consumer Behaviors & Needs Emergence Of New Financial Services Models

8th Refresher Course In computer Application, ASC, University of Burdwan

You have no choice but to operate in a world Shaped by globalization and the information revolution. There are two options: adapt or die. Andy Grove, Chairman, Intel.

In the 21st century there will be a lot of banking, but there will be no banks. says Bill Gates

8th Refresher Course In computer Application, ASC, University of Burdwan

What Is Online Banking?

Need For Internet Banking

8th Refresher Course In computer Application, ASC, University of Burdwan

Bank
Information Technology

Customer

8th Refresher Course In computer Application, ASC, University of Burdwan

Chief Driving Forces Behind Increasing Use of Internet Banking Technology

Competition Cost Efficiencies Geographical Reach Branding Customer Demographics

8th Refresher Course In computer Application, ASC, University of Burdwan

Phases In Internet banking World

Establish Nurture
Unidirectional Static Websites

Stage To Initiating Basic Transaction

Complement

Highly Automated Multi-channel Integrated Offering

Evolve

A Self-reliant Channel Capable of Conducting Banking Independently

8th Refresher Course In computer Application, ASC, University of Burdwan

Growth Potentiality of Indian banking sector Huge Under-Penetrated Banking Market India Has A Very Low Debt Penetration Rapid Economic Growth Has Boosted Consumer Banking Much Younger Population With Faster-Growing Labour Forces Very Impressive Household Saving Rate

8th Refresher Course In computer Application, ASC, University of Burdwan

Cost Per Transaction In The US: Money Transfer (units in US $)

Type

Branch

Cheque

Phone

ATM

PC

Internet

Cost Per Transaction

1.07

0.95

0.45

0.27

0/.015

.010

8th Refresher Course In computer Application, ASC, University of Burdwan

Internet Usage Data

600 500 400 300 200 100 0 Aisa Only Rest Of the World 303.7 % of World Pop. Penetration % of Pop. User Growth User % of World Population 545.9

56.3 19.4

42.6

43.7 33.6

54.4

8th Refresher Course In computer Application, ASC, University of Burdwan

8th Refresher Course In computer Application, ASC, University of Burdwan

INTERNET USAGE PENETRATION OF ASIA

7 24.8 26.9 46.3 55.9 1 65.7 65.9 69.2 72.4 75.5 77.6 0 20 40 60 80 100

INDIA VIETNAM CHINA MACOA BRUNEI MALAYSIA TAIWAN HONG KONG SINGAPORE JAPAN SOUTH KOREA

8th Refresher Course In computer Application, ASC, University of Burdwan

Challenges Before Indian Internet Banking Online banking have not Penetrated in India to the Expected Levels

A widespread trust in the security of electronic transactions is yet to develop among the masses and that perhaps is the main reason why Internet banking has not grown well in India. Security is always a challenging task for a banking and technology community.

8th Refresher Course In computer Application, ASC, University of Burdwan

Internet usage and the online banking sector are experiencing spectacular growth. This growth in popularity has not gone unnoticed by the criminal element. Online fraud has become major source of revenue for criminals all over the globe. The biggest threat to online banking is the threat of Phishing.

Phishing is a form of online identity theft that employs both social engineering and technical tactics to steal consumers personal identity data and financial account credentials

8th Refresher Course In computer Application, ASC, University of Burdwan

There are two classes of fraud that commonly affect online operations User Identity Theft User Session Hijacking

8th Refresher Course In computer Application, ASC, University of Burdwan

Existing authentication involve three basic factors

Something the user knows Something the user has

Something the user is

8th Refresher Course In computer Application, ASC, University of Burdwan

8th Refresher Course In computer Application, ASC, University of Burdwan

8th Refresher Course In computer Application, ASC, University of Burdwan