Chapter 2

e-banking service
Electronic banking provides 24 hours access to a majority of services provide
by banks.

Most banks provide these basic services to the customers.

• Checking a customers’ saving account
• Customers can view and obtain account summaries and details of their debit
cards/credit cards.
• Money can be transferred between accounts.
• Example current account to saving account
• Dirham account to USD account
• Cross transfer between different bank account
• Make the visa and master card payments.
• Web bill payments: web bill payment allows the customer to pay all the
bills online.
• Managing investment portfolio: customers can view their current
investment accounts online.
e-Statements

E-Statements provided by the banks. customers to subscribe for this service

by the e-mail to received e-statements in their mailbox. Bank option for
receiving daily, weekly, bimonthly and monthly statements.
The benefits to switching to e-statements are:
• The customers statement is ready by the date the customer specifies(daily,
weekly, bimonthly and monthly statements).
• There is no cost to enroll in and to receive e-Statements
• Customer will be notified by e-mail when your statement is ready to view.
• Privacy of information is maintained.
• Salary transfers/ deposits can be checked.
• View and store the monthly statements.
• Obtain account transaction history.
• Customer can opt=out of e-statement at any time.
More service linked by the e-
banking
1. Direct deposits
e-banking makes possible direct deposit of cheques to the account on a
regular basis. Direct payment of insurance premiums mortgages and utility
bills.

2. Phone banking
Pay –by – phone system enables banks and financial institutions to pay
certain bills or to transfer funds between accounts.

3. Internet banking
Internet banking ( personal computer banking) allows the
customer to use the computer to view the account balance,
request transfers between accounts and pay bills.
• As a consumer, you can use Internet banking to:
• Access account information
• Review and pay bills
• Transfer funds
• Apply for credit
• Find out if a check was cleared
• Find out when a bill is due
• Apply for mortgage
• Search for the best loan rates
• Compare insurance policies and prices

4. Point of sale transfers (POS)

Point-of-sale transfers facilitates payment for
purchases with the credit card.
5. Electronic cheque conversion.

• Electronic cheque conversion converts a paper cheque into a

electronic payment. This could happen either at the point-of-sale or in
situations where a company receives cheques in the mail.
• In point-of-sale where a cheque is issued and sent to the shop cashier,
it is processed through an electronic system. The system capture the
customer banking information and the amount of the cheque.
• Once the cheque is processed the customer signs a receipt
authorizing the shopkeeper to present the cheque is processed, the
customer bank electronically, this way funds are deposited into the
merchant account.
 6. Automated teller machines (ATM)

(Automatic Teller Machine) A banking terminal that accepts deposits and

dispenses cash. ATMs are activated by inserting a cash or credit card that
contains the user's account number and PIN on a magnetic stripe. The
ATM calls up the bank's computers to verify the balance, dispenses the
cash and then transmits a completed transaction notice.
ATM Service
The machine is used to certain essential functions such as cash deposit
case withdrawal, account balance verification etc.
Most ATM are connected to interbank networks, enabling people to
withdraw and deposit money from machines not belonging to the bank
where they have their account or in the country where their accounts are
held ( enabling cash withdrawals in local currency). Some example of
interbank networks include PULSE, PLUS, Cirrus, Interswitch, STAR and
LINK.
• ATMs rely on authorization of a financial transaction by the card issuer or other
authorizing institution via the communications network. This is often performed
through an ISO 8583 messaging system. (International Organization for Standardization)
• Many banks charge ATM usage fees, in some cases these fees are charged solely to
users who are not customers of the bank where the ATM is installed, in other case,
they apply to all users.
• ATMs typically connect directly to their host ATM controller via either ADSL
(Asymmetric digital subscriber line ) or dial-up modem over a telephone line or
directly via a leased line. (A leased line is a service contract between a provider and a
customer). Leased lines are preferable to POTS (Plain old telephone service) lines
because they require less time to establish a connection. Leased lines may be
comparatively expensive to operate versus a POTS line, meaning less-trafficked
machines will usually rely on a dial up dial –up modem. That dilemma may be
solved as high speed internet VPN (virtual private network )connection because more
ubiquitous.
7. Telephone banking service

• Telephone banking is a service provided by a bank that enables customers

to perform financial transactions over the telephone, without the need to
visit a bank branch. Telephone banking times can be longer than branch
opening times, and some financial institutions offer the service on a 24
hour basis.
• 7x24 banking through the phone
The options available on telephone Banking.
• Checking a customers saving.
• Transfer funds between your accounts with the same base account number
• Find out if a check has been cleared.
• Activation of credit and debit cards.
• Blocking of credit and debit cards
Telephone banking facilities

• Balance enquiry
• Statement request
• Cheque book request facility.
• Fund transfer between different accounts
• Utility bills payment.
• General account queries and advice
• Ordering traveler's cheques from the bank.
• Loan payments
• Obtaining product information
• Placing stopped payment ( on cheques)
• Requesting copies of cleared cheques.
• Reordering cheque books.
 8. Mobile banking

Mobile banking also known as M-Banking

Mobile banking facilities
• Balance enquiry
• Account transactions
• Fund transfer between different accounts
• Utility bills payment.
• General account queries and advice
• Ordering traveler's from the bank.
 9. SMS Banking

• Short Message Service

• Basic banking inquiry transactions(balance inquiry, funds,
exchange rate inquiry…) are performed by the cooperation of
bank and the (GSM Global System for Mobile Communications)
operator.
• SMS banking services are operated using both
push and pull messages.
• Push messages are those that the bank chooses to send out to a
customer's mobile phone, without the customer initiating a
request for the information.
• Another type of push message is One-time password (OTPs). OTPs are the latest
tool used by financial and banking service providers in the fight against cyber fraud
. Instead of relying on traditional memorized passwords, OTPs are requested by
consumers each time they want to perform transactions using the online or mobile
banking interface. When the request is received the password is sent to the
consumer’s phone via SMS. The password is expired once it has been used or once
its scheduled life-cycle has expired.
• Pull messages are those that are initiated by the customer, using a mobile phone,
for obtaining information or performing a transaction in the bank account.
Example
• Account balance enquiry
• Mini statement request
• Electronic bill payment
10. Investment services through online banking

• Purchase of securities
• Purchase of IPO (Initial public offering)
• Online foreign exchange and money market trading
• Online buying and selling of shares
• Stock prices and NAV (Net Asset Value) listing
11. Insurance services

• Applications for travel insurance

• Payments of all insurance services.
• Credit care and protection services.
• Life insurance calculations and payment.
12. Mortgage services

• Mortgage loan application facility

• Mortgage calculation for vehicles
• Mortgage calculations for Home loans
13. Credit card services
• Credit card Application
• Low interest/ installment offers
• Card security services ( activating and deactivating / blocking the credit
cards)
 Call centers

• A call centre or call center is a centralised office used for the purpose of
receiving or transmitting a large volume of requests by telephone. An
inbound call centre is operated by a company to administer incoming product
support or information inquiries from consumers. Outbound call centers are
operated for telemarketing, solicitation of charitable or political donations,
debt collection and market research. In addition to a call centre, collective
handling of letter, fax, live support software, social media and e-mail at one
location is known as a contact centre.

• The human operator at the call center is provided with screen software, so as
to enable access to a wide variety of information about the customer. It offers
abundant opportunities for the operator for rendering more effective and
efficient service.
Benefits of call centers

• Helping build a high value relationship between the bank and its customers.
• Easy to handle huge customer base
• Effective delivery of banking and financial products.
• Enhanced personalized service to customer.
• Provision of cost effective service.
• Detailed information about the customer can be seen in the computer screen
at the call centers.
Call center enables the bank to get into meaningful conversations with
customer on all matters relating to their account. These matters are usually
confined to the handling and enactment of routine transactions. Besides,
providing an interactive connection with the customer, call centers give an
opportunity to tell the customer about other services it is offering
Call centers carry out the following tasks

• Using authorization technique to ensure that the customer who is making or

receiving the call is a genuine and authentic account holder.
• Receiving telephone calls from customers and acting on instruction received.
• Making telephone calls to customers in order to perform whatever banking
function is involved.
• Having access to customers account details so that information can be given
on the telephone to genuine and authentic customers.
• Having access to funds transfer facilities so that customers instructions
regarding the making of payments to third parties can be acted on.