Digital Banking

Overview
Hello!
I’m Jamshid
Zakee
Digital Banking Technical Officer

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“

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What is D-Banking or E-
Banking?
Digital banking is the process by which a
customer perform banking transactions
via electronic means without visiting a
bank or financial institution, in other
words E-Banking is use of computers and
telecommunications to enable banking
transactions to be done by telephone or
computer rather than through human
interaction. Terms like PC banking,
Internet banking, virtual banking, online
banking & home banking refers to E-
Banking.
E-banking indicate a process through which a
customer is allowed to carry out, personal or
D-Banking history in a
Nutshell
▸ First ATM opened in London in 1967 by Barclays Bank
▸ The First Website for Banking Services launched by Stanford Credit
Union in 1994 in the US
▸ The first online Account Access was activated by Wells Fargo in 1989
US
▸ First computerized POS system offered in 1973 by IBM US
Advantages of E-Banking.

11/10/2024 ADC Department Report of May 2021

Benefits/Advantages
▸ Automation of transaction process

▸ Releasing Pressure from Branches

▸ Time saving (branch can utilize saved time to introduce other innovative
ideas)

▸ increase in sales & profit (saving resources)

▸ Digitizing the economy (Cashless Economy)

▸ Transparency

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 Convenience:
 save effort and time where the customer can conduct banking operations
without having to go to the bank.
 Ease & Speed of conducting transactions via D-Banking Channels
 Security: provide higher security and less risk of manipulation or theft of checks, in
addition to the reliability of cash flows, and the speed of the movement of cash.
 Control:
 control over your finances with the ability to self-serve
 mobile banking apps and websites generally have no restrictions on when you
perform banking tasks, like depositing a check or moving money from one
account to another.
 24/7 in 365 Availability: Executing transaction anytime anywhere in real time.
 Reducing the dependence on paper forms:
Drawbacks
▸ Downtime: Access to your account could challenged due to
digital banking solutions outage.
▸ Learning Hassles: For those who aren’t tech-savvy, online
banking and mobile banking apps might be a bit difficult.
▸ Security: username and password can be compromised despite
measures taken (like dual/multi authentication) by banks/Fis
▸ Power & Tech Infrastructure: Poor technological infrastructure
& lack of reliable power supply will result in inaccessibility of D-
Banking Services
Ways to enhance/improve delivery of
D-Banking Services (in General).

▸ Design customer friendly systems:

▸ Make all services available onboard:
▸ Empower your staff: train & update your front desk employees &
customer support to increases customer experience
▸ “Transfer” the bank into the customers’ phone: by Internet,
WhatsApp & Mobile Banking.
▸ Cross-promote: Find ways to cross-promote digital banking. For
example, during your new account opening process, encourage
enrollment into online banking. Or, if your bank or credit union is
doing a credit card promotion, use that as an opportunity to cross-
promote your mobile app.
▸ Awareness & Promotion:

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Ways to enhance/improve delivery of
D-Banking Services (at Branch Level).

▸ Listing/Naming all D-Banking available Products

▸ Provision of proper information about D-Banking Products/Service
convincing them to avail (features of products)
▸ Post Sales Services (Guiding Customers how to use the service after sale)
▸ On time Service (contacting customers that your card is ready, communicating
customers issue with D-Banking like missing signature ….)
▸ Tracking existing customers cash withdrawal amounted less than AFN
30,000.00 (in places where we have ATM)

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Role of Digital Banking:
 Bank the backbone of Economy: somehow its involved in all economic
activities of the individuals, corporations, countries, regions and global market
without banking development of a society is impossible growth of human
beings are dependent to Banking.
 Technological Changes: developments in Fintech
 Form of Banking Changed: from traditional banking to a new phase its
developed coincidentally with the development of technology & reached to a
new era.
 Customers’ Behavior & Demands have changed: now clients don’t prefer to
wait for a long time in queues to perform financial/non-financial transactions
or to have limited access to their accounts, thus, Digital Banking has become
the most important part of banking it provides access to customers in their
accounts without time bound in multiple forms.
 Importance of D-Banking: leading the countries/human societies to cashless
economies are impossible without Electronic or Digital Banking, thus, to meet
the contemporary demands/needs of clients and to reach to the new heights
of economic goals developing D-Banking with latest technology & according
to market demand is essential.
 BMA Digital Banking Products & Services
• AF-Pay Debit Card
• Internet Banking (financial facility com-
ing soon)
• SMS banking “via Message/ Email”
• E-statement “daily, monthly, quarterly”
• ATM
• POS (coming soon)
 AF-Pay Card (Afghanistan Payment System)
 Afghanistan Payments System (APS) initially inaugurated and founded by BMA, Pashtany Bank and Ghazanfar
Bank in 2011, is national switch of Afghanistan which provides AfPay Debit/Prepaid Card Management System as
well as ATM Switching & Driving, with many other ongoing projects (APS is governed completely by DAB now).

Banks Connected to APS & Charges

 All Local Banks are Connected to APS.
 $0.06 (AFN 5.00) for Balance inquiry in ATMs
other than BMA (Currently AFN 15)
 $0.20 (AFN 20.00) for Withdrawal in ATMs
other than BMA (Currently AFN 30.00)
 Cash Withdrawal from BMAATMs AFN 25.00
 Annual Fee: AFN 300.00
 Renewal/replacement: AFN 300.00 (AFN
600.00 for card & PIN)
 Re-Issue PIN: AFN 300.00
ATM (Automated Teller Ma-
chine)
is an E-Banking outlet which permits cardholders to perform basic transactions without
aid of teller or bank representative. Below is list of few features
 Withdrawal physical cash
 Balance Inquiry
 Mini statement
 Transfer funds
 PIN Change
Note: Currently BMA has 19 Active ATMs (14 ATMs in Kabul and 5
ATMs in Paktya, Khost, Kandahar, Herat & Mazar-e- Sharif), soon
Jalal-abad ATM will be covered.
 Replenishments
Standard replenishments; Onsite ATMs (within/attached to bank premises) once in a week and
Offsite ATMs every 10 days or when the remaining balance in canisters are below 50% (for
both)

Important points:
 D-Banking will inform branches for Replenishment.
 Print Canisters/Cash Report.
 Ask Digital Banking department to Stop the ATM (When Ready).
 Count remaining cash in cassettes along with rejected cash and credit to the related GL.
 Fill cassettes with fix amounts according to ATM/Canister Limit.
 Call back for activation of ATM to digital banking department.
 Inspect ATM as per Provided Check List in Cash note
 Fill cash notes and send back to digital banking along with report at earliest.
 Note: replenishment should take place in presence of HT, BM/BrOM, and
security.
 Internet Banking
Existing internet banking solution is passive (non-financial), through which customer can login and access
his/her account statement and account balance and is only accessible on web base (no mobile App).

Types of Internet Banking:

By User Type:
Corporate
 Retail
By Facility Type:
Non-Financial
User
Note:
Work on internet banking finan-
cialfacility and mobile App is
in progress.
SMS Banking

Normally there are two types of SMS as mentioned below, however, in BMA customer has to request branch to
enroll him/her for the facility in this case they will receive alerts against any fund movement in their accounts.
 Mandatory Alerts
 Non-Mandatory Alerts

Monthly enrolment Fee: AFN 20.00 for Individuals and AFN 50.00 for Corporates.
Mandatory and Non-Mandatory Alerts

Mandatory Non-Mandatory
 Mandatory Alerts are set it by default and sending
on its particular date  Non-mandatory alerts are by order of cus-
tomers, without customer permission bank
 License, Visa, Passport Expiry
can’t activate;
 Welcome message at the time of AO  Debit and Credit cash transactions
 Minor to major  Account to account Transferee
 Account status change  Staff Salary Processing
 Signature Change  Interest posting and Tax deduction
 TD Maturity
 Cheque book Charges
 Lockers and re-KYC
THANKS
!
Any
questions?