Examining The Major Functions Of Online Banking Information Technology Essay

Online banking is the practice of making bank dealings via the Internet. It will give you an outstanding chance to bypass the time-consuming, paper-based aspects of usual banking in order to manage your finances more competently. 

By switching to electronic bills, statements, and payments, the average American family can save 6.6 pounds of paper in one year! And you can grab any fake (scam) transactions faster than if you received a statement by snail post.

Thanks to pioneering technology and the Internet in particular, we no longer have to leave the house to make payments. Online banking is available 24 hours a day, 7 days a week, so you can do it anytime, anywhere. 

Online banking allows us to do various services with the click of a mouse. You can:

1.    Pay a bill.

Electronic bill payment service allows a depositor to transfer money from his or her online account to a creditor or merchant, for example to a public utility or a outlet. There is no need to stand in a long queue on a weekend morning to handle your transactions!

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The payment is practically instant, though some financial institutions can wait until the next business day to send out the payment. If it is necessary, the bank can publish and mail a paper cheque or banker’s draft to a creditor who is not set up to receive electronic payments.  

2.    Schedule payments in advance.

Most banks recommend clients the ability to schedule a payment on a particular date. Once the amount is entered and the payee is checked off, the funds are automatically deducted from your online bank account. 

It is mainly useful if you constantly forget due dates. For example, you can schedule credit card or mortgage payments to make sure that you will not incur late fees and damage your FICO score.

3.    Transfer funds.

Do you want to transfer money rapidly and securely? With online banking, you can make money transfers between your own accounts, or send money to a third party account as well. All you need is recipient/payee information and enough funds in your account. Quite often, the operations are performed in real time.

4.    Manage all your accounts in one place.

Online banking is an enormous time saver because it provides a chance to handle a number of bank accounts (checking, savings, CDs, IRAs, etc.) from a single site. Most new accounts you open will be automatically added to OB (Online Banking).

5.    View images of your checks online.

Do you need a copy of a paid check? With online banking, you can see and print scanned images of the front and back of all checks you have written. It is easy and convenient.

6.    Apply for a loan or credit card. 

By using an account online, you can apply for a credit card or a loan (a car loan, a student loan, a mortgage, a home equity loan, etc.) from the same bank. If you have a good credit score and long relationship history with your bank, your application is likely to be accepted.  

7.    Purchase and manage CD accounts.

You can purchase a certificate of deposit from your bank If you have money you want to invest,. Online banking lets you compare all available offers as well as the terms, for example APY or maturity periods. When you confirm the purchase, the funds will be automatically deducted from your account. 

8.    Order traveler’s checks.

You can order American Express Traveler’s Cheques online. The bank will typically charge your online account for the sum of the cheques you bought and an express delivery cost. 

9.    Increase your overdraft.

Log in to online banking and click on ‘Overdraft’ in the menu & You can increase your overdraft online.

10.    Order a cheque book.

Save your time by ordering cheque book online. You will need to visit your bank once when you get a confirmation letter that your cheque book is ready for collection. 

11.    View up-to-the-minute account statements and balance.

There is no need to wait for the bank statement to get to your P.O.Box to check account balances. You can view all transactions and withdrawals every day just by logging in to your online account. Additionally, you can immediately report errors or unauthorized transactions in your statement. 

12.    View automatically updated spending report.

All of your purchases are sorted into common categories automatically – no receipts to keep, no expenses to enter. It is straightforward to see where your money goes!

13.    Track your payment history.

Online banking provides an opportunity to look for your payments by transaction type, date, description or amount. When did you last pay Company X? When did you buy your computer? To whom did you make your most recent payment? Your bank knows the answers. 

14.    Integrate the data with personal finance programs.

Online banking lets you bring in electronic payment data in personal finance software such as Quicken or Microsoft Money. You will be able to enter into your online accounts directly from your personal finance program. An Internet connection and online account log in information is all that needed.

15.    Change contact details. 

Have you moved to a new house? Changed your telephone number? You can log in to your online account and change contact information (e-mail address, telephone number, password, etc.). It is more secure than to send this information by e-mail. 

16.    Utilize investment research. 

You can receive real-time quotes, analytics, news and stock market information to make a more relevant and profitable decision.

17.    Take advantage of online brokerage.

Internet banking lets you invest online. You can place and confirm trades 24 hours a day, seven days a week. Most banks offer a wide range of money market instruments from various issuers.

18.    Get alerts.

This service lets you to get timely e-mail messages from your bank about any critical changes related to your Internet accounts. For instance, you can get alerts when you make a withdrawal or change your contact information. 

19.    Verify terms and conditions.

You can verify all information about your account online whenever you forget your interest rates or payment due date.

20.    Chat with your customer assistant department.

If you need help, you can send message to your bank’s customer assistant department. They will be in touch with you and try their best to help you solve your problem. 

Now that I described various functions of Online banking it is the time to discuss Citibank functions and how they do them and what is the purpose of doing such functions.

Here is the Citigroup Mission Statement:

“Citigroup Inc. (“Citi”) recognizes that foreclosures affect the individual, the family and the community. We also understand that early intervention and a full understanding of the available options are important for mitigating or minimizing the impact of foreclosures.

Citi’s Office of Homeownership Preservation (OHP) is dedicated to finding solutions that preserve homeownership and help mitigate the challenges faced by borrowers. We work directly with borrowers at risk of losing their homes. We also work with any and all stakeholders who advocate on behalf of borrowers, including non-profit organizations, elected officials, government agencies, regulators and others. Our strong partnerships with these stakeholders help us to develop and implement homeownership preservation solutions and enable us to magnify our outreach and assistance to borrowers. For example, OHP’s hotline for housing counselors greatly enhances their ability to work with us on behalf of our borrowers. And our borrower and counselor outreach programs, which we conduct in collaboration with partners in numerous locations around the U.S., bring help directly to at-risk communities.”

First I will explain the definition of 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. 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. Customers access e-banking services using an intelligent electronic device, such as a personal computer (PC), personal digital assistant (PDA), automated teller machine (ATM), kiosk, or Touch Tone telephone. While the risks and controls are similar for the various e-banking access channels, this booklet focuses specifically on Internet-based services due to the Internet’s widely accessible public network. Accordingly, this booklet begins with a discussion of the two primary types of Internet websites: informational and transactional. Citibank offers vast amount of electronic banking products and services which enables customers fast and secure access to banking through Citibank’s portfolio of bank. CitiDirect Online Banking business banking’s new direction and is defined as a powerful new way to bank that puts customers banking functions all in one place at your fingertips and within reach of your entire organization.  For small companies, it means accessing global capabilities from your desktop and for multinationals it’s about getting a handle on your world. CitiDirect is the cornerstone of Citibank’s vision of the future of banking. CitiDirect lets you access your accounts-real-time -and an ever-expanding portfolio of industry-leading products and services through the Web, so you can be more efficient, more flexible and more in control of your banking.

Customers can access their information on bank balances, initiate both local and foreign currency payments and would shortly be able to initiate trade transactions and customer service requests.

Benefits:

Banking that changes as you change

Customer Banking Services

Leading Edge Security

Online Support

Fast, Efficient and Easy to Use

Easy Access, Total Control

Citibank Paylink is Citibank’s premier payment product, enabling an absolute outsourcing of the payment route to Citibank for efficiency, time and cost savings to our customers. Citibank Paylink needs data creation, approval at customer’s offices and diffusion via on-line modem to Citibank where payment is authenticated and securely practiced either as cheques or Electronic Funds Transfers to receiver at Citibank or other banks.

Citibank Paylink can also be edged with accounting systems to be given payment data prior to transmission on-line to Citibank. SAP R/3, JD Edwards, SUN and most major accounting systems have been successfully interfaced with Citibank Paylink. Citibank Paylink also incorporates a perform at library, which can be used for regular payment instructions of dealers, and beneficiaries.

Citibank Paylink suggests a fast, suitable, consistent and secure way to effect payments, including:

Foreign Currency/ Money Market Deal initiation

Mass Payments Processing for Dividends, etc

Accounts Payable Process Management

Regional Payments Services

Electronic Payroll Processing

Customs and Duty Payments

Benefits of Citibank Paylink:

Security and control.

Facilitates straight through processing

Enhanced reconciliation

Convenient, Flexible and adaptable system

Elimination of check order, printing and signing process

Time and cost savings

Citibanking Online deals with cash management which is an progressively more important factor in overall business performance. Information on your bank accounts must be exact, up-to-date and instantly reachable. Citibanking Online is Citibank’s Windows based electronic banking display place providing integrated access to account information. This system allows you to see, in a matter of seconds, the very latest of information on accounts you hold worldwide via a computer terminal in your office. Citibanking Online ‘s competence and power provide a clear competitive edge wherever & whenever you do business.

Benefits: 

Historical Data

Simple Access and User Friendly Software

Comprehensive Data

Provides Instant Information

Real-time Online Information

Citibanking is considered as a product that offers admission to all Citibank branches around the globe. You can easily and from your own office, you can get connected to Citibank’s network in a few seconds. You can also view the very latest information on accounts held globally. You can also transmit or transfer instructions to any Citibank location or branch in the world. Citibanking performs in either a single workstation or multi-user surroundings providing features and attributes adapted to meet your specific needs.

Benefits:

Security.

Rapid, cost effective communications.

Reliable, accurate records.

Enhanced productivity.

Citibanking is well-matched to financial institutions and global corporations; It is also well suited to trade transactions and works well with cash management.