The function and benefits of online banking

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Contents pages

Section........................................................................................................Page Number

1. Introduction...................................................................................................1

2. Literature.......................................................................................................2

3. Abstract.........................................................................................................3

4. Findings........................................................................................................4

5. Methodology.................................................................................................8

6. Conclusions..................................................................................................10

7. Recommendations........................................................................................14

8. Bibliography.................................................................................................15

List of figures

1. A bar chart show the evaluations of online banking for the students...........8

1. Introduction

Online bank or E-bank, contains two levels of meaning, one is the concept of agency, referring to the information network services offered by banks; another one is the business concept, referring to the financial services that provided by banks through information networks, including traditional banking business, and because of the information technology brings new business. In daily life and work, we refer to online banking, and more second-level concepts, namely the concept of online banking services. Online banking is not just a simple transfer from traditional banking products online, the way other services and content undergone some changes, but also due to the application of information technology, it has produced a new variety of businesses.

2. Literature Review

2.1 Overview

Functions of online banking

Online bank accounts over the Internet to customers, query, reconciliation, inline transfer, bank transfer, credit, online securities, investment banking and other traditional services, so that customers can stay at home will be able to safely and easily manage the demand and time deposits , checks, credit cards and personal investments. We can say that online banking is a virtual bank counter on the Internet.

Online banking is also known as “3A bank”, because it is not time and space constraints, it can work at any time, any place, in any manner to provide customers with financial services.

Types of Bank

Many banks offer online banking services,this service is to attract customers.Malaysiahas many banks, for example, CIMB Bank, May Bank and Public Bank.

2. Abstract

Online banking is known as the internet banking or E-banking. Online banking is one of the famous system in website. The aims of this report are to understand online banking’s functions and benefits. This study has been conducted by research from website. The findings show the online banking is very useful to society and it is easy and quick to perform any transaction by using online banking system. Furthermore, online banking system is good for all users and customers, because each of service is traditionally available from many banks. So, it is concluded that online banking is really useful system. We can use in society with many functions and benefits in this system.

With the advent of the Internet and Internet-related services, technological conveniences and advances have somehow made their way into our daily lives and have now become a major part of us. So, it comes as no surprise to us that the banking industry has also developed into a major presence over the Internet as well. But just how safe is online banking? Will your money really be secure?

To propose improvement through the understanding of the advantages and disadvantages of the online banking system, and to make online banking services to be more better, Customers can complete a range of financial services via the Affin Bank. We can see how it save customer’s time.

3. Findings

3.1 Introduction

With the increasing technological advances and the popularity of computers, more and more people choose to do a various activities through the Internet. With the development of e-commerce, basically the majority of banks have launched online banking. This is not only convenient to the customer doing banking service, also save a lot of money for the bank.

Affin Bank Berhad (AFFINBANK) is a wholly-owned subsidiary of Affin Holdings Berhad which is listed on Bursa Malaysia. It commenced operations in January 2001 following a merger between the former Perwira Affin Bank Berhad and BSN Commercial (M) Berhad in August 2000. In June 2005, it merged with the former Affin-ACF Finance Berhad. To date, it has a network of 89 branches nationwide.

3.2 The benefits of online banking

3.2.1 Flexible

Online banking has a flexible time which is available all the time.For example,this system provided 24 hours per day and 7 days per week.This helps customer to perform their tasks form anywhere and anytime,even not in the office hour or when the bank is closed on holidays.The only thing they need to have is an acyive internet connection.Customer can choose their own banking times even in the lunch hour,mid night,or weekend.

3.2.2 ubiquity

The online banking is ubiquitous. The benefits of online banking include being able to access your account via the computer, online payment, online transfer-action to another account and people can quickly receive e-mails when your account has hazard warning.

3.2.3 faster

Online banking transfers faster. All of the online banking services are usually executed immediately a significant reduction in the customer’s time, but also facilitate the commercial activities carried out by the customer.

3.2.4 high efficiency

Online banking has high efficiency. When you are on a security site, you can access and manage all of your accounts, including personal pensions, insurance premiums, and so on.

3.2.5 diversification of services

Online banking offers a variety of effectiveness services. Many online banks offer high-end tools to help the customers more effectively to manage the assets, including account aggregation, stock selection, and a series of vary user-friendly service.

3.2.6 Send email

Some online banking has to provide the service to send email notification when a lot of money exits from your account, or when your account balance is too low. Such services attract more and more customers choose to use online banking system.

4.List of figures

4.1 Figure: A bar chart show the evaluations of online banking for the students

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(source:the questionnaire survey conducted by the students who study in Legenda College University, 16th Sept. 2014)

According to conducting a field survey through questionnaires in Legenda College University, we can get the next information. The people who access the higher education can easy to accept a relatively high degree of fresh technology. The majority of respondents have used online banking, The evaluations of the advantages for online banking are more concentrated. However, low trust in online banking is security.

5. Methodology

5.1 The disadvantages of online banking

5.1.1 time

The opening of the online banking services need to spend a certain amount of time. To register your online banking program, you will need to provide accurate personal information, and signed an agreement in any a bank.

5.1.2 re-enter personal information

Some banks are on a regular basis to upgrade the system or add new features, and customers had to re-enter personal account information.

5.1.3 safety

Many customers have security concerns of online banking. The best way is to print out the transaction documents and keep them. Once there is a conflict, customers have the evidences to protect their funds against loss.

5.1.4 Easy to use

Internet E-mail communication is also very flexible and convenient, easy, and communication between the customer and the bank's internal bank. Internet banking is easy to use. Such as the elderly can easily master its use. If you can access the unit or at home, online banking is to help you save time best choice. You can select the bank account you use most frequently, go to counter the banks for online banking, you can put all of the same bank account maintenance room. You can make your own using online banking account inquiries, transfers, deposits to demand deposits set, pay the bill, but also use money on credit cards, buy fund and buy government bonds.

5.2 Way to address

While most of us have heard about online banking services, more than a majority of us have probably not even tried it out yet. It could possibly be because we are more comfortable working with real people; paper and money instead of its virtual counterpart as performing transactions over the Internet can be very impersonal. Whatever may be the reason; there are a number of advantages and disadvantages to online banking services. This article will outline the good side as well as the bad side to online banking so that you can either feel that online banking is a safe way to manage your finances, or you could possibly be justified in your fears.

6.Conclusions

The results show opportunity cost of lost of banks customers will reduce to use of online banking and also indicate non-existing of enough knowledge and trust have led to decrease in using online banking in the world and education can increases using of online banking services among the bank’s customers in Malaysia .

Online banking in people's lives played a very importance role. We can save time and money, and no regional restrictions apply for our needs to do quickly business. We are unnecessary trek to the bank counter, almost all of the business can be done at home. Money exchanges between the two accounts has become more convenient. The rapid development of online banking is improving people's living standards.

7. Recommendations

In the light of these conclusion, I recommend that should be have many changes.

First, Laws and regulations and the disconnect between the real needs. Internet banking is still part of the economic and financial activities, it is inseparable from the legal norms and protection, and the existing legal and very difficult to regulate the development of online banking and consumer protection. Online money transfer as long as there is a link error occurs, the funds can not pay the normal, legal disputes occur, so we need to adjust the law. We should establish a dedicated online banking access system. To access the online banking system of registration, security, geographical areas defined strictly, and in access standards, business and other aspects of leniency, to establish a set access system, accelerate the construction of relevant laws and regulations.

Second, the very prominent security issues. Transactions via the Internet, confidentiality, authenticity, integrity and non-repudiation of the information is the most critical factor. How to ensure the security of transactions, for personal privacy, has become the fastest online banking problems to be solved. At present, commercial banks, although some have taken security measures to develop the corresponding provisions, but management is not prevalent in the implementation of strict phenomena, such as keeping passwords and periodic replacement, computer room security management, disaster recovery, virus prevention and so on.

Third, the lack of overall planning of network construction, due to poor infrastructure resulting funds online payment lag, still had to use "online ordering, payment under the net" approach when some customers in online transactions. Although banks have set up their own websites, but in the framework and content of the website services, banking and high-tech industries combination does not close, resulting in a network of small-scale financial markets, low level of technology, small coverage, basically still stuck in the traditional business computerized on. We should complete and comprehensive online information system.

Forth, vigorously to build the information network of banking supervision, with extensive use of security technology and authentication mechanisms, the development of Internet financial services to banking supervision and financial undoubtedly legislation brought new issues. Old regulatory approach and procedures have been difficult to apply to new financial services, the existing financial legislation also prevent or limit the development of new business. With the change in the commercial banking business model and internal management mechanism, the bank regulatory model will change.

8.Bibliography

http://www.buzzle.com/articles/advantages-and-disadvantages-of-online-banking-services.html

http://baike.baidu.com/view/58779.htm?fr=aladdin

http://www.affin.com.my

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