Handbooks Online Banking Pdf


Monday, July 1, 2019

In Bangladesh, Banking industry is mature to a great extent than earlier period. Now modern banking services have launched by some multinationals and new local private commercial banks. This paper tried to unearth the present status of electronic banking in banking sector in. ONLINE BANKING SYSTEM IN BANGLADESH Department of Electronics and Telecommunication Engineering ONLINE BANKING SYSTEMS IN BANGLADESH. Electronic banking is one of the most demanded and latest technologies in banking To find out the common features of electronic banking in Bangladesh.

Online Banking Pdf

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on online banking, security and privacy and online banking use of DBBL consumers. The Finland have an online banking contract with their bank (The Finnish. understanding about the online banking service of Prime Bank Ltd. To This report contains study on Prime Bank‟s online banking service. I am very glad to submit the report on “Customer Perception on E-Banking and Evaluate the Online. Banking Performance of Uttara Bank LTD”.

In this report I have tried to find out some problem areas related to Internet Banking of Janata Bank Ltd and tried to find out some possible solutions to those particular problems. I have enjoyed the preparation of the report because it provides me with the chance to put my theoretical knowledge in a real life situation.

If you need any kind of further information I will be glad to provide accordingly. Sincerely yours, Md. M- Session: I also confirm that, this report is only prepared for my academic requirement not for any other purpose.

I further affirm that the work reported in this internship is original and no part has been previously submitted to any books or in any other universities.

Certificate of Supervisor I am pleased to declare that Md. He is wished all the best in his effort. REB Khilkhet branch. I am also grateful to the Department of Management Studies.

I must express my gratitude to all the executives and officers of Janata Bank Limited. Then I must take this opportunity to thank Mr. Ashish Kumar Sarker. I take the opportunity to express my deep sense of gratitude of my reverend supervisor Tahmina Rita for her invaluable suggestion and guidance during the study period that has greatly inspired me in preparing this report successfully.

Jagannath University for proving me such opportunity to come closer to real situation. Although time was very limited for getting the sufficient knowledge about all of banking service. Acknowledgement First of all. After completion of core and major courses.

Janata Bank was born with a new concept of purposeful banking sub serving the growing and diversified financial needs of planned economic development of the country. Janata Bank Limited is a state owned commercial bank with numerous branches spreading all over Bangladesh and is catering the need of the mass business people. Internet banking allows us to make deposits. Banking is the business of providing financial services to the private individuals. I also worked with customers to get the idea about real scenario of banking in practical life.

I worked with some officers and departments to gather experience and practical knowledge. We can shop online. I collected secondary data from various sources like published materials such as annual reports. Thanks to technology.

Khilkhet branch. It doesn't get much more convenient than that the benefits are many. Internet banking is the practice of making bank transactions or paying bills via the Internet. It was corporatized on 15th November Janata Bank Limited is playing the most significant role in collecting foreign remittance from different countries and transfers the currency in BDT to the destined location.

Janata Bank Limited is one of the largest and leading public commercial bank of Bangladesh. Banks also render services like issue of letter of credit and guarantee. I worked in Janata bank. Executive Summary Bank is a financial institution that receives. The main service of a bank is mobilizing deposits and lending these to those people to finance their consumption or business activities.

The report can be divided in to two parts. First, is the organization part and second is the project or research part. In this report, I have arranged the data in such a way that, the results have reached a desired destination of understanding.

The online banking services and internet banking services are described along with the services availed by JBL. Besides that the current problem and risk of online banking sector is also discussed throughout the report.

The position of Janata Bank Ltd in online banking sector with its growth pattern is also discussed here. At the end of the study some suggestions have been made by analysing current internal and external situations.

Account AEO: Commercial Area CBS: Disaster Recovery Site EO: Executive Officer ERP: Foreign Commercial Bank GM: General Manager Govt.: Government HRD: Information and Communication Technology IP: Internet Protocol ISP: Internet Service Provider IT: Information Technology JBL: Janata Bank Limited LC: Letter of Credit Ltd.: Limited MD: Managing Director.

Return on Investment SCB: Transfer Control Protocol TD: Term Deposit WWW: World Wide Web. Particulars Page No. So banks should position themselves at a unique place in the minds of the customers by offering attractive offers such as higher interest rates or by offering superior service to the customers.

Internet banking has started in the s but it is relatively a new concept in Bangladesh. Global financial crisis. It is an easier way to transfer amount to another account to which we have to make payment to the party. We are blessed with such unique technologies where all our works gets completed within seconds. Although the history of Banking goes back to the 14th century in Europe but Banks are now everywhere.

After making registration. The password provided by the bank should be 2. We can pay our bills like telephone. To operate internet an individual needs the customer number and password. Internet banking allow us to access our account.

With the help of internet banking. Internet banking is the practice of handling all the bank transactions through internet. However the competition in the banking industry has intensified more than ever before. Banks in Bangladesh play a significant role compared to other financial Institutions. Internet banking is a service offered to the customers which includes viewing the balances on accounts.

Financial Institutions mainly banks play a pivotal role in matching a depositor and lenders and channeling money and making the economy more efficient. When we apply for internet banking. Internet banking has opened up a new field of competition for banks.

Services include financial advice. Internet Banking is one of such technologies. The Internet has provided a new and inexpensive channel for banks to reach out to their customers. The highly unregulated Internet provides a less than secure environment for the banks to interface. The diversity in computer.

The password should be alpha-numeric and should be changed on frequent basis. This information must be kept at utmost secret. Internet banking or Internet banking allows customers to conduct financial transactions on a secure website operated by their retail or virtual bank. For years. Now that its customers are connected to the Internet via personal computers. The advent of the Internet and the popularity of personal computers presented both an opportunity and a challenge for the banking industry.

Internet banking isn't out to change our money habits. Banks point of view internet banking is as a powerful "value added" tool to attract and retain new customers while helping to eliminate costly paper handling and teller interactions in an increasingly competitive banking environment.

I choose Janata Bank Limited for my study. I have tried my level best to present my experience of the organization and in this report. Before starting exploration to the real occupational field.

My instructor Tahmina Rita has assigned this topic. Farashgonj branch from to. Specific objectives: To obtain main objective. Internship program is made essential to this MBA program with the aim of developing the real life sense.

I have done this report as the requirement MBA program. The investigation will be helpful for the readers and researchers. A thorough research was carried out for a period of three months when we talked with several bank bodies and finally this article is chalked.

It also makes the reader aware of the operations of JBL and the internet banking service of the bank. However JBL provides very few internet banking services which is available on their web site. A few internet banks update information in real- time. It does take some time to set up and get used to an internet account.

Internet banking through traditional banks enables customers to perform all routine transactions. Despite the advantages. It will allow you to pay your bills and make transactions anytime during the day and the week. Some internet banks are traditional banks which also offer internet banking. Account information can be accessed anytime. Many banks allow for file transfer between their program and popular accounting software packages.

Internet- only banks have a few additional drawbacks: In addition. Once information has been entered.

Sign on to Personal Online Banking:

The bank will never close because you can access it through your laptop or computer. First and foremost. Banks should choose their internet banking system configuration. Over the Internet.

Internet banking services also give you the option of handling several different bank accounts from one site itself. Switch money from one account to the other. The following table lists some of the common retail on line banking services offered by banks are as follows: Banking transactions can range from something as basic as a retail account balance inquiry to a large business-to-business funds transfer. Pay bills. On line banking services.

And doing all of the other things people does at banks in the comfort of their own home Most internet banking sites are compatible with programs like Microsoft Money and Quicken. Keeping up to date with all of your latest cheque payments etc. It is a network of networks that consists of millions of private.

Banks can outsource any aspect of their on line banking systems to third parties. The following entities could provide or host i. Banks may choose to support their on line banking services internally. The Internet carries a vast array of information resources and services. Sometimes the term An intranet is a private computer network that uses Internet Protocol technologies to securely share any part of an organization's information or network operating system within that organization.

The term is used in contrast to internet. The banking sector of Bangladesh comprises four categories of scheduled banks. Different banks use different types of software depending on the cost and other factors. These are state- owned commercial banks SCBs. At present. The essential hardware required to build a complete internet banking system includes: Bangladesh Bank is the Central Bank of Bangladesh and the chief regulatory authority in the sector.

It may host multiple private websites and constitute an important component and focal point of internal communication and collaboration.

Internet Banking in Bangladesh is yet to develop according to international standard. As a part of stepping towards internet-banking. After connecting with the information superhighway. Internet user percentage of total population From the figure we see that the Internet users of our country are increasing every year. In Bangladesh most of the banking hardware is available for internet banking is The existing form of e-banking that satisfies customer demand in banking activities electronically throughout the world are PC banking or PC home banking that include internet banking.

The software support for internet banking. Internet banking operation hardware includes. POS terminals. Again Bangladesh Government is working on the copyright law and the preservation of intellectual property act.

V-SAT connectivity etc. In 15 November. Including 4 overseas branches in United Arab Emirates Janata Bank runs its business with branches across the country having a big family of around More so a matter of great honor is that the contribution. Janata Bank Limited. In this backdrop. Advance BDT 3. Post Box No Abu Dhabi. NurulAlam FCA. Al-Ain and Sarjah. Dhaka- United Arab Emirates Profile of Janata Bank Limited.

Not yet started its operations Janata Exchange Company. Values Janata Bank Ltd follows eight basic core values. Vision To become the effective largest commercial bank in Bangladesh to support socio-economic development of the country and to be a leading bank in south Asia.

These core values work as basic principles of JBL. Core competences of Janata Bank Limited 2. JBL follows and maintain ethical values in every sphere of its banking operation and customer services. The core ethics of JBL business are as follows: The bank typically provides short term working capital loan and limited long term credit exposure.

On the other hand. Under corporate banking services JBL provides trade finance.

In JBL offers micro enterprise and special credit as well as rural banking. Organogram of Janata Bank These are given below: They are: It includes strengths and weaknesses. It includes opportunities and threats.

SWOT analysis explains environment of an organization in two broad ways. This analysis is known as SWOT analysis. Apart from inland branches.

Live operations in all native branches of the bank are conducted using off-line systems. This facility was available in 17 branches only in Internet banking services of JBL Janata Bank has introduced new services for those people who are not covered by traditional banking services.

In all 93 branches each administrative district being equiped with at least one such branch are operating the payment system of electronic Government procurement by which all types of tender fees are collected.

JB cheque payment and JB cash deposit system through cheque have been developed in all inland branches by its own software. Among these. The following table projects the growth of launching internet banking according to administrative divisions. For performing internet banking. Speedy foreign remittance system has been implemented in the national branch network. ATM Service By adopting the latest technology and under the largest network comprised of 34 banks. Cardholders of the bank have access to more than ATMs.

This service has been categorized under the following three modules: Considering customer service expansion along with promoting goodwill of the bank. The table below shows the increase of number of both debit and credit card holders. JB Cash Deposit System 3.

JB Cheque Payment System 2. Internet banking Real time system has already been implemented in branches by This system has enabled instant monitoring of core deposit collection of all branches. CDMS As core deposit is the low cost deposit and nucleus of the financial base of any bank. Repetition of reporting is reduced thus saving working hours.

Reports both in detail and summary. Helps decision taking through generating transparency and accountability of information. Through this system. OMIS does the following: All the dignitaries and employees of JBL are able to view over fifty Real Time reports about the employees and organizational structure of the bank by registering with General Module of the PMIS system.

Management Information System MIS For the purpose of automation and removal of the shortcomings of manual generation of reports and regular monitoring of the business activities. All necessary statements are produced through open query system. Credit Cards: Credit Card can be called as an equivalent of a loan sanctioned by the bank to its customers.

JBL is the first to introduce website with domain named www. Website As a state owned bank. Monthly Savings Scheme iii. Double Growth Benefit Scheme iv. Triple growth Saving Account v. Education Saving Account vi. Millionaire Deposit Scheme vii.

Senior Citizen Scheme etc. Most of them are being given below which will be explained in the next chapter of the report. Credit Card iii. Debit Card iv. Online shopping [4][5] 2. It is planning to double its ATMs within next year. It may include of any transactions related to online usage. To access a financial institution's online banking facility, a customer having personal Internet access must register with the institution for the service, and set up some password under various names for customer verification.

The password for online banking is normally not the same as for telephone banking. Financial institutions now routinely allocate customer numbers also under various names , whether or not customers intend to access their online banking facility. Customer numbers are normally not the same as account numbers, because a number of accounts can be linked to the one customer number.

The customer will link to the customer number any of those accounts which the customer controls, which may be cheque, savings, loan, credit card and other accounts. To access online banking, the customer would go to the financial institution's website, and enter the online banking facility using the customer number and password.

Some financial institutions have set up additional security steps for access, but there is no consistency to the approach adopted [8][10][12]. Internet Banking- Through a PC that connects to a banking website via modem and phone line or other telecommunication connection and Internet Service Provider or via wireless technology through PDA Personal Digital Assistant or cell phone.

As a consumer, one can use online banking for different financial purposes. Some of them are given below: Access account information- Anyone can his or her account's details information without coming to the bank physically. Review and pay bills- Consumer can pay different types of utility bills without any trouble and at the same time he or she can review current market policies and position.

Transfer funds- People can easily transfer from one account to another or one place to another instantly. Apply for credit- Consumers can apply for credits in case of shortage of balance.

Trade securities- As bank and consumer are connected online and maintain everything online there are more trade securities for both of them. Apply for mortgage- Consumers can submit all necessary papers and apply for mortgage for different purposes.

Search for the best loan rates- As information is more available than ever before one can easily search for the best loan rates within a bank or different banks. Compare insurance policies and prices- Consumers can also compare insurance policies and prices and choose the right one. Online Shopping- People can now easily download things without going marketplace. It is quite possible to download almost anything from home because of Online Banking System. Paperless and eco-friendly banking- The whole world is now eagerly doing paperless and eco- friendly business.

As there is no paper needed for online banking there is no need to chop down trees for paper production and there is also less pollution.

Mobility- Now banking is possible is anywhere and anytime. Saves money and time- The cost per transaction throughout the world is decreasing day by day. The following figure shows the comparison between different channels- Figure 3. Cost Per Transaction[7] 3. As this system is developed through the Internet there is a big chance for hacking through our system. SSL is a set of rules that tells computers the steps to take to improve the security level of communications.

These rules are designed for the following [1][20]. Encryption guards against eavesdropping.

Encryption is the scrambling of information for transmission back and forth between two points. When we send out a letter to our friend, we communicate in a language that both of us understand.

Since, our language is understood by thousands of other people also, if someone else gets hold of our letter, he will not have any problem in understanding its contents[1][9].

Decryption Encryption refers to the encoding of information that a user sends over the Internet. If an unauthorized party tries to read that, it would be impossible for them to read it. Decryption is reverse technique of Encryption. After receiving encrypted data it is converted to original data[9].

Following figure shows the encryption and decryption process Figure 3. Encryption and Decryption [7] 3. Using a mathematical formula, SSL puts the information into a complex code.

Even if information is intercepted, that would be extremely difficult to read. SSL Technology [20] 4. Authentication Authentication provides security against impersonation. High Implementation and maintenance cost- Online Banking System cost so high to be operational and it also needs costly but proper maintenances. More Complex and sometimes not user friendly- Some people find Online Banking System is complex and not user friendly.

Security Issues- Security of a customer's financial information is very important. Financial institutions have set up various security processes to reduce the risk of unauthorized online access to a customer's records, but there is no consistency to the various approaches adopted. Security is possibly the most significant barrier to acceptance of IT services and digital services as a utility becoming absolutely crucial in a more dynamic often justify their creation by claiming that it supports and promotes certain qualities, often called non- functional qualities.

These qualities including portability, reusability, performance, modifiability, and scalability are supposed to be automatically conferred on any system that is realized using the architecture. The achievement of non-functional qualities is attributable to many factors such as coding styles, documentation, testing, etc. Now a day's Money Mules are a great threat to online banking system who are capable to breach OBS security. The following figure Figure 3. In large systems a Meta Architecture approach will improve both the functional and non functional quality attributes [3][13][15].

OBS security breaching [7] 3. Each computer is supported by network software that provides the server or client functionality. The hardware used to transmit data across the network is called the media. It may include copper cable, fiber optic, or wireless transmission. The standard cabling used for the purposes of this document is 10Base-T category 5 Ethernet cable.

This is twisted copper cabling which appears at the surface to look similar to TV coaxial cable. It is terminated on each end by a connector that looks much like a phone connector.

Its maximum segment length is meters [1][27].

Online banking

Clients- Any PC or other computer system that makes use of network resources is a client. In the old days, we might have called them workstations, but the correct, modern term is client.

Some may say terminal, but that really refers to a screen and keyboard-only setup no processing power, no Windows!

Almost any PC can be a client, provided that is somehow attached to the network and run the software needed to get it communicating. A small network may have only one server, but a corporate setup may have dozens, each performing a specific task.

A third server may provide access to the Internet while also acting as a firewall to keep out unwanted hackers trying to probe around network. Ultimately, the number of servers on a network depends on the workload the network is going to face and whether one server can cope.

Later chapters will discuss how networks behave under load and what can be done to keep things running smoothly. Server based and Peer-to-peer. In a server based network, there are computers set up to be primary providers of services such as file service or mail service. The computers providing the service are called servers and the computers that request and use the service are called client computers. In a peer-to-peer network, various computers on the network can act both as clients and servers.

For instance, many Microsoft Windows based computers will allow file and print sharing. These computers can act both as a client and a server and are also referred to as peers. Many networks are combination peer-to-peer and server based networks. The network operating system uses a network data protocol to communicate on the network to other computers. The network operating system supports the applications on that computer.

Essentially, it is the topological structure of a network, and may be depicted physically or logically. Physical topology refers to the placement of the network's various components, including device location and cable installation, while logical topology shows how data flows within a network, regardless of its physical design. The main ones are bus, star, ring and tree. Bus- In local area networks where bus topology is used, each node is connected to a single cable. Each computer or server is connected to the single bus cable.

A signal from the source travels in both directions to all machines connected on the bus cable until it finds the intended recipient. If the machine address does not match the intended address for the data, the machine ignores the data.

Alternatively, if the data matches the machine address, the data is accepted. Both ends of the network must be terminated with a terminator. A barrel connector can be used to extend it. Figure 3. Star- In local area networks with a star topology, each network host is connected to a central hub with a point-to-point connection.

In Star topology every node computer workstation or any other peripheral is connected to central node called hub or switch.

The switch is the server and the peripherals are the clients. The network does not necessarily have to resemble a star to be classified as a star network, but all of the nodes on the network must be connected to one central device. Ring- Devices are connected from one to another, as in a ring.

A data token is used to grant permission for each computer to communicate. Ring Topology [7] IV. Tree- The type of network topology in which a central 'root' node the top level of the hierarchy is connected to one or more other nodes that are one level lower in the hierarchy i.

This tree has individual peripheral nodes. Tree Topology [7] 3. Private networks are networks that belong to a single organization. There are usually said to be three categories of networks: A networked office building, school, or home usually contains a single LAN, though sometimes one building will contain a few small LANs perhaps one per room , and occasionally a LAN will span a group of nearby buildings. In addition to operating in a limited space, LANs are also typically owned, controlled, and managed by a single person or organization.

They also tend to use certain connectivity technologies, primarily Ethernet and Token Ring [27][28]. Local Area Network II. MANs can also depend on communications channels of moderate-to-high data rates.

A MAN might be owned and operated by a single organization, but it usually will be used by many individuals and organizations. MANs might also be owned and operated as public utilities. They will often provide means for internetworking of local networks [1]. In essence this mode of telecommunication allows a business to effectively carry out its daily function regardless of location. This is in contrast with personal area networks PANs , local area networks LANs , campus area networks CANs , or metropolitan area networks MANs which are usually limited to a room, building, campus or specific metropolitan area respectively [1][29].

Wide Area Network [7] 3. This can be done automatically using network software such as dynamic host configuration protocol DHCP or by manually entering static addresses into the computer. Ports- The TCP layer requires what is called a port number to be assigned to each message. This way it can determine the type of service being provided.

Please be aware here, that when we are talking about "ports" we are not talking about ports that are used for serial and parallel devices, or ports used for computer hardware control. These ports are merely reference numbers used to define a service.

For instance, port 23 is used for telnet services, and HTTP uses port 80 for providing web browsing service. There are some ports that are assigned, some reserved and many unassigned which may be utilized by application programs. Port numbers are straight unsigned integer values which range up to a value of Addresses- Addresses are used to locate computers.

It works almost like a house address. There is a numbering system to help the mailman locate the proper house to deliver customer's mail to. Without an IP numbering system, it would not be possible to determine where network data packets should go. IPv4, which means internet protocol version 4, is described here.

Each IP address is denoted by what is called dotted decimal notation. This means there are four numbers, each separated by a dot.

Each number represents a one byte value with a possible mathematical range of Briefly, the first one or two bytes, depending on the class of network, generally will indicate the number of the network, the third byte indicates the number of the subnet, and the fourth number indicates the host number. This numbering scheme will vary depending on the network and the numbering method used such as Classless Inter-Domain Routing CIDR which is described later.

The host number cannot be 0 or None of the numbers can be and the first number cannot be 0. This is because broadcasting is done with all bits set in some bytes.

Broadcasting is a form of communication that all hosts on a network can read, and is normally used for performing various network queries. An address of all 0's is not used, because when a machine is booted that does not have a hardware address assigned, it provides 0. This would occur for machines that are remote booted or those that boot using the dynamic host configuration protocol DHCP. The part of the IP address that defines the network is referred to as the network ID, and the latter part of the IP address that defines the host address is referred to as the host ID.

IPv6 is an enhancement to the IPv4 standard due to the shortage of internet addresses. The dotted notation values are increased to 12 bit values rather than byte 8 bit values. This increases the effective range of each possible decimal value to Of course the values of 0 and all bits set are generally reserved the same as with the IPv4 standard.

Every minute of every day, Internet users download files from various websites and Webmasters upload files and web pages to their website. OBS uses this method for operating their online financial services and also for synchronizing between branches and Head Office.

FTP is a widely accepted Internet Standard. Although there have been subsequent Internet Drafts over the years that have added extensions to the original specification, RFC is the rulebook that defines FTP. The FTP server will store or house the files accessed during file transfer and the FTP client will connect to the FTP server and send files to, or retrieve files from the server [1][31]. The FTP client will connect to the FTP server, usually on port , and will begin a synchronized conversation that involves the client sending a command to the server and the server sending a response to the client.

For each command sent by the client, the server will issue a response. Responses from the server are of a standardized format where the first three characters of the response will be a 3-digit response code. The first digit of the response code is the most important as it is an indicator of the overall success or failure status of the command. Usually response codes beginning with 1, 2, or 3 are good, and response codes beginning with 4 or 5 are not good [21][22]. Each time the client and server wish to transfer a file or other data, such as a directory listing, a separate connection is established between the parties.

This separate connection is called the Data Connection and is used solely for the purpose of transferring the requested data. Once the data has been transferred between the two parties, the Data Connection is closed [22]. Control Connection and Data Connection [7] 3. When running in Active Mode, the client issues a PORT command to the server signaling the server to actively open the Data Connection back to the client. When running in Passive Mode, the client issues a PASV command to the server signaling the server to select an appropriate IP address and port number, and then listen passively while the client attempts to open the data connection.

One of the primary reasons for having the choice of Active or Passive Mode Data Connections is due to any firewalls that may be present between the client and server. A common scenario would be an FTP server that sits behind a firewall.

The firewall would be blocking all incoming traffic except for traffic bound for port 21 FTP traffic. Since the client is now the passive entity in the connection establishment, the server would be able to open an outbound connection through the firewall to the FTP client.

The FTP server attempts to make connections to random high ports on the client, which would almost certainly be blocked by a firewall on the client side.

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The client will make both connections to the server, but one of them will be to a random high port, which would almost certainly be blocked by a firewall on the server side[27][33]. Passive Mood 3. Now it is an era of electronic banking. Electronic banking is the banking activities performed through the electronic means, i. In , First National City Bank of New York introduced successful electronic system-based transferable deposition certificate.

In the year of , America and Japan began to run their self-made dispenser machine. This machine worked off-line which was not linked with the computers of the bank. Customers can apply for loan, verify their account information, financial transactions etc. Internet can be seen as a truly global phenomenon that has made time and distance irrelevant to many transactions.

This paper presents the performance, problems and prospects of introducing online banking in Bangladesh [3][6][8]. Many researchers expect rapid growth in customers using online banking products and services. Banks see Internet banking as a way to keep existing customers and attract new ones to the bank.

National banks can deliver banking services on the Internet at transaction costs far lower than traditional brick-and-mortar branches. The actual costs to execute a transaction will vary depending on the delivery channel used. National banks have significant reasons to develop the technologies that will help them deliver banking products and services by the most cost-effective channels [6][9].

Online Banking in Bangladesh [6] 3. Ultimately, the products and services obtained through internet banking may mirror products and services offered through other bank delivery channels. A brief description of retail and wholesale products and services is given below: Hardware An ATM is typically made up of the following devices: CPU to control the user interface and transaction devices ii.

PIN Pad similar in layout to a Touch tone or Calculator keypad , often manufactured as part of a secure enclosure. Secure crypto processor, generally within a secure enclosure. Display used by the customer for performing the transaction vi. Function key buttons usually close to the display or a Touch screen used to select the various aspects of the transaction vii.

Record Printer to provide the customer with a record of their transaction viii. Vault to store the parts of the machinery requiring restricted access ix.

Housing for aesthetics and to attach signage to [21] 2.

Software With the migration to commodity Personal Computer hardware, standard commercial "off-the- shelf" operating systems, and programming environments can be used inside of ATMs. There is a computer industry security view that general public desktop operating systems have greater risks as operating systems for cash dispensing machines than other types of operating systems like secure real-time operating systems RTOS [1].

Working Principle [21][22] i. The a magnetic strip on the back of the card includes the bank's routing number, the user's bank account and their password. Once the card is entered, the machine reads the information on the magnetic strip and prompts the user to enter their password or "PIN" personal identification number.

Communication- Using the bank's routing number, the ATM connects to the main computer of the bank that issued the card via telephone line. If, for example, the user wants to withdraw money, the request for the amount is sent to the bank that checks the amount against the amount in the account. If the amount requested is the same as or less than the amount in the bank, the withdrawal is approved, and the bank deducts the amount from the account.

If the amount requested is more, the withdrawal is denied. Dispensing- Once the ATM receives approval, it dispenses the specified amount of money through a slot in the machine. The money is held in a sealed container with a spring-loaded bottom to maintain pressure. Rubber wheels in contact with the top bill s roll, causing the money to be dispensed into a holding area until the correct amount is reached.

Once the correct amount is counted out, the bills exit via the external slot to the user.

The ATM then returns the card, prints a receipt and returns to standby mode. Disadvantages [1][22] Although ATMs are convenient, there are disadvantages to using these machines.

Privacy- Privacy is not guaranteed because ATM transactions are completed using a keypad or touch screen. The people standing nearby may be able to see personal identification number, or PIN, and account balance information, making it easier to steal your identity. Fees- Although there are regulations that provide the option of opting out of various fees, using an ATM machine and a debit card generally leads to fees and charges.

If account balance is less than the requested withdrawal amount, some machines will still allow you to withdraw funds. This leads to a fee for overdrawing your account. It also run the risk of fees for using the ATMs of other banks.

These fees may originate from your bank or from the bank you are using. In some instances, both banks will charge you a fee to withdraw the money. ATM Card- Having a physical ATM card in possession is a disadvantage If it is lost or stolen, it can be used by the finder, which can lead to potential losses for you.

Another problem is the machine taking the card. If anyone enter the wrong PIN or the machine malfunctions, that card may disappear into the machine. The amount of a transaction is typically displayed on a card reader, after which the customer swipes the card then enters their PIN number.

In the case of credit cards, the issuer lends money to the consumer or the user. It is also different from a charge card though this name is sometimes used by the public to describe credit cards , which requires the balance to be paid in full each month.

The banks store the rejected checks for a certain period usually 90 days. After the expiration of this stipulated period, the rejected checks are spoiled and the bank maintains a micro film copy for a period [9][13].

This can mean a retail shop, a checkout counter in a shop, or a variable location where a transaction occurs in this type of environment. Additionally, point of sale sometimes refers to the electronic cash register system being used in an establishment. Point of sale systems are used in restaurants, hotels, stadiums, casinos, as well as retail environments in short, if something can be sold, it can be sold where a point of sale system is in use [4][13].

ACH processes large volumes of both credit and debit transactions which are originated in batches. ACH credit transfers include direct-deposit payroll payments and payments to contractors and vendors. ACH debit transfers include consumer payments on insurance premiums, mortgage loans, and other kinds of bills. Other retail and fiduciary products and services may include Balance inquiry, Funds transfer, Downloading transaction information, Bill presentment and payment, Loan application, Investment activity and other value-added services [9][10].

This kind of transfer of money could be either within the country or abroad. Funds are transferred under the following network: Bank wire 3. Some of them are still in theory, some are already implemented. They are- 1.

Tele-Banking or Telephone Banking 2. Mobile Banking 3. Television Banking 4. Super ATMs 5. Microwave Banking 3. Most telephone banking services use an automated phone answering system with phone keypad response or voice recognition capability.

To ensure security, the customer must first authenticate through a numeric or verbal password or through security questions asked by a live representative.

With the obvious exception of cash withdrawals and deposits, it offers virtually all the features of an automated teller machine: Tele Banking [7] 3. Mobile banking and Mobile payments are often, incorrectly, used interchangeably.

The two terms are differentiated by their service provider-to-consumer relationship; financial institution-to-consumer versus commercial institution- to-consumer for mobile banking and payments, respectively. Mobile Banking involves using mobile devices gain to access financial services. Mobile payments on the other hand may be defined as the use of mobile devices to pay for goods or services either at the point of download or remotely. Bill payment is not considered a form of mobile payment because it does not occur in real time.

With the introduction of the first primitive smart phones with WAP support enabling the use of the mobile web in , the first European banks started to offer mobile banking on this platform to their customers.

Apple's initial success with iPhone and the rapid growth of phones based on Google's Android operating system have led to increasing use of special client programs, called apps, downloaded to the mobile device.

Online Banking

SMS banking- It includes basic banking inquiry transactions balance inquiry, funds, exchange rate inquiry… are performed by the cooperation of bank and the GSM operator. Security is the main problem. WAP Banking- Wireless application protocol WAP is an application environment and set of communication protocols for wireless devices designed to enable manufacturer-, vendor-, and technology-independent access to the Internet and advanced telephony services.

Various banking transactions offered in WAP environment by banks. It has similar architecture with SMS banking. SIM Application Toolkit is designed as a client-server application. On the server side, Sim Card platform and the client side, phone that supports the SIM Application Toolkit In the near future, banks will start to offer banking transactions in this platform. SMS Banking [7] 3. Superior image resolution detail for a given bandwidth, Smaller bandwidth for a given image resolution, Compatibility with computers and the Internet, Interactivity, Superior audio quality, Consistency of reception over varying distances.

Banks offer their banking transaction in this new environment. T- commerce is the technology for the near future. The Television Banking enables customers to conduct banking business with television and TV set- top box as the terminal and remote control for the operational tool based on the cable TV broadband network. Compared with online banking, television banking is closer to the life of everyone. Customers of television banking do not need to download a computer or bear the internet "jam".

Television banking enables customers to complete banking transactions through the television, have access to financial products and industry information, and experience a more fashionable and convenient wealth management approach [1][19].

Television Banking [7] 3. But it remains one of the most under-used examples of computer technology. That's about to change dramatically. Over the next few years, ATMs will offer consumers an increasingly wide range of services. In fact, while cash may be the ATMs' currency of today, personal information and communication may become their most valuable offering of tomorrow.

These new solutions include ATMs that understand speech, recognize their customers by the patterns in their eyes, and dispense e-cards, theatre tickets and stamps as well as cash. There's even a Creative ATM which enables banks to develop a closer affinity with an audience who will become primary customers in the years ahead - children ages nine to The Creative ATM includes an individual personal software agent character that gets to know the user, personal services from horoscopes to pen pals, a music corner for listening and recording, and banking and financial information [25].

These high-speed telecommunications infrastructure networks provide both redundancy and expansion of computer LAN and WAN technology, while allowing banks to own or lease their own networks versus making expensive, never-ending payments to traditional telecommunications providers. ERF Wireless' encrypted networks also provide fast delivery of data, text, voice, video information and remote services across the entire enterprise or geographical area [24][26].

Jamuna Bank By dint of their online service any customer will be able to get the following facilities: SWIFT is a member owned co-operative, which provides a fast and accurate communication network for financial transactions such as Letters of Credit, Fund transfer etc.

By becoming a member of SWIFT, the bank has opened up possibilities for uninterrupted connectivity with over 5, user institutions in countries around the world 2. City Bank Citi-Direct is their unique service. To gain more control over ones cash positions, one needs easy access to accounts and information in real time. One will need the convenience of local banking and the global solutions of an industry leader.

The solution is Citi-Direct Online Banking. Eastern Bank Limited Eastern Bank Limited Internet banking application addresses the needs of small, individual and corporate account holders of the bank.

This application provides a comprehensive range of banking services that enable the customer to meet most of their banking requirements over the net. Bank Asia Bank Asia symbolizes modern banking with innovative services in Bangladesh. Bank Asia is maintaining its competitiveness by leveraging on its Online Banking Software and modern IT infrastructure. HSBC Business Banking Account enables a person to receive credit of all the cash or cheque deposits along with inward remittance and make all local payments and provide access to the wide range of services for the business requirements.

BRAC bank: These measures extend from data encryption to firewalls. Electronic Banking provides various types of support through a wide range of operating systems, sweeping transaction accessories with the provision of reporting features or other special functions.

Moreover, the Fast Track also provides some account opening service and loan information. It is also working to make an interface with the renowned PayPal payment gateway. Once everything in operation, this will change the payment mechanism in Bangladesh and will reduce public suffering. It will also boost the E-commerce and open the door for freelancer and ICT Company to earn more remittance for the country.

Dutch-Bangla Bank Limited DBBL is the first bank in Bangladesh, who introduced mobile banking service to bring poor people from remote area under smart banking service. Bangladesh Bank has already allowed 10 banks to initiate mobile banking with the aim to connect the deprived section of the society with the modern banking system; DBBL is the first runner among of them.

More and more banks are now using different software to do their banking operations, which has established the arguments in favor of using technology. Many Bangladeshi commercial banks initially started with some locally produced banking software and at present many of them are now upgrading the previously obtained software. However, some of them started with the advanced foreign software. It is evident from Table 1 that the banking sector of Bangladesh has recognized the necessity of introducing new technology in this arena.

More than twenty five commercial banks are using ATMs including foreign commercial banks. The banks are planning to install more ATMs in different locations, which are commercially important. Bangladeshi commercial banks are implementing the online banking gradually, though it cannot be said it is real time online banking. In this case the private commercial banks are playing the pioneering role. Through the existing system of online banking the branches are linked together with one another which facilitate smooth coordination among the branches and also with the head office.

It enhances the mobility of account transaction. Few Bangladeshi banks are now introducing real time online banking and Internet banking. It is basically in true sense the online banking, which is practiced in much developed banking system. The Bangladeshi commercial banks, which are introducing the real time online banking, have made a breakthrough in traditional online banking.

Therefore, from the introduction of real time online banking the customers of those banks will be able to enjoy the high quality customer oriented banking service.

Besides the PCBs, Foreign Commercial Banks FCBs operating in Bangladesh are offering world class banking services using the improved banking technologies since their operation started in this country [3][6][8].As there is no paper needed for online banking there is no need to chop down trees for paper production and there is also less pollution.

Clients come first ii. Encryption and Decryption For instance, on the internet, competitors are only one click away. As discussed by Turner , progress in information technology has slashed the costs of processing information, while the internet has facilitated its transmission, thus facilitating change in the very essence of the banking business.

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