8/8/2019 Abstracts of Presentation E Banking Risks and Responses

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E Banking : Risks and Responses

A Presentation by : Mrs. Pratibha N. Jha

Abstract of Presentation

e-banking

e-banking is the use of electronic channels to communicate and transact business with

both domestic and international customers, primarily through use of the Internet and theWorld Wide Web. This has enabled banks and other financial institutions to increase the

use of electronic channels for receipt and delivery of their products and services. The BIS

broadly categorises e-banking, both domestic and international, into three categories:

Basic information web sites, which only broadcast information on bankingproducts and services offered to bank customers and the general public.

Simple transactional web sites which allow bank customers to submit applications

for different services, make enquiries about balances and submit instructions tothe bank but not permit any account transfers.

Advanced transactional web sites that allow bank customers to electronically

transfer funds to/from their accounts, pay bills and conduct other bankingtransactions on-line.

e-banking has unique characteristics that may increase an institutions overall risk profile

and the level of risks associated with traditional financial services, particularly strategic,

operational, legal, and reputation risks. These unique e-banking characteristics include:

Speed of technological change,

Changing customer expectations,

Increased visibility of publicly accessible networks (e.g., the Internet),

Less face-to-face interaction with financial institution customers,

Need to integrate e-banking with the institutions legacy computer systems,

Dependence on third parties for necessary technical expertise, and

Proliferation of threats and vulnerabilities in publicly accessible networks.

e-banking Risk

Risks arise primarily on the latter two categories which permit transactions, though

clearly a site which broadcasts information can be exposed to risks arising frominaccurate, misleading or even fraudulent representations about the bank's products and

services.

8/8/2019 Abstracts of Presentation E Banking Risks and Responses

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