Online Banking

9 September 2016

Online-banking is the automated delivery of new and traditional banking products and services directly to customers through electronic, Interactive communication channels. Online-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 online-banking services using an intelligent electronic device. Online Banking is one of the truly widespread avatars of E-Commerce the world over. 1. 2 Background

Safe and secure internet banking system means the provision of information about a bank and its services via a home page on the internet. Internet banking system provides customer access to accounts, the ability to make transaction between different accounts. The main objective of this project, any user with a personal computer and browser can get connected to his bank service website to perform any transaction that he wishes. In internet banking system the bank has a centralized database that is web enabled. All the service that the bank branch permitted on the internet is displayed in the menu of the system.

It is believed that online banking began in 1995. It was October 6 and presidential savings bank offered an alternative to the usual branch banking by offering on line access of bank services. This opened the gates for banks solely existing in the internet banking and allowed other physical banks to join in. Nowadays, it is rare to see huge banks that offer no online banking services as more and more people get connected to the web. There are also more and more banks that advertise on the web and there are now a huge number of web domains by banks.

This is the basically the start of the online banking history (Jeff Wysaski, 1999). For carrying out internet banking properly, a basic knowledge of computer and internet required by the user, which limits the number of users willing to make used of internet banking facility. Many users which are not comfortable with computer and internet, they often find it so difficult to use internet banking. Therefore, for beginners, internet banking is really time-consuming. In addition people also find it difficult in trusting a completely mechanized system like internet banking, in case of any financial matters.

For instance a simple mistake, like clicking a wrong button, may create a big problem. And so, many individual often keep wondering how they executed the transaction. 1. 3 Statement of the problem The research is focused on the present online or internet banking system in Nigeria, the lapses in these systems and how these systems can be improved to deliver a better and efficient service. What motivated the author to write this project is that the existing system has disadvantages such as time and security issues. Most the systems are slow and there is no concrete security concerning user’s personal detail.

Nigeria is a country that is known for internet crime, if there are loopholes in an online banking system it will cause a great damage to that bank. The solution to this is a more secure and fast system. The author intends to find these loose ends that cause security and slowness of the system, and then address it by creating a better one. That motivated the author to develop this project, which gives the real life understanding of safe and secure internet banking, and activities performed by various roles in the supply chain. The project enables users to look after some of their banking needs from a computer connected to the internet.

They can conduct any kind of transaction process with their personal banking details such as managing of transactions or view their bank statements. The World is advancing at a rapid stage. Data theft is becoming a big issue. If it is not tackled effectively it will cause a lot of trouble to any bank. Also, the concept of Online-banking in Nigeria is still very new; the author wants to create awareness through developing a prototype, and then demonstrating it to show its importance. 1. 4 Objectives The main objective of this project is to provide anytime internet banking service to user without customer having problem to access the system.

To study existing online banking systems in Nigeria * To study the state of online banking implementation in Nigeria * To establish a way to make the system more efficient and effective * To implement a prototype of online banking system using the new standard of HTML and CSS3 The main focus’s and aim of this project is to provide a secure of easy operations of the banking activities. 1. 5 Purpose of the system The aim of this project is to develop a secured online banking system with the following objectives: * Create an efficient and effective online banking system * To create a better online banking system in Nigeria

To establish a more secure and simple interface * To implement online banking in Nigeria using International standard CHAPTER 2 LITERATURE REVIEW Successfully completing the project involves the responsibility to conduct a proper literature review on the existing Online Banking systems. This is to get a clear picture on the subject before going further into the research and design phase of the development. 2. 1 Existing system The traditional way of maintaining the details of a user in a bank was to enter the details and record them.

Every time if the customers want to perform any transaction he has to go to bank and perform the necessary actions, which may not be feasible all the time. It may be a hard-hitting task for the user and the banker too. 2. 2 History of Online Banking The precursor for the modern home online banking services were the distance banking services over electronic media from the early ’80s. The term online became popular in the late ’80s and refers to the use of a terminal, keyboard and TV (or monitor) to access the banking system using a phone line.

‘Home banking’ can also refer to the use of a numeric keypad to send tones down a phone line with instructions to the bank. Online services started in New York in 1981 when four of the city’s major banks (Citibank, Chase Manhattan, Chemical and Manufacturers Hanover) offered home banking services using the videotex system. Because of the commercial failure of videotex, these banking services never became popular except in France where the use of videotex (Minitel) was subsidized by the telecom provider and the UK, where the Prestel system was used.

The UK’s first home online banking services were set up by the Nottingham Building Society (NBS) in 1983 (“History of the Nottingham” Retrieved on 2007-12-14. ). The system used was based on the UK’s Prestel system and used a computer, such as the BBC Micro, or keyboard (Tandata Td1400) connected to the telephone system and television set. The system (known as ‘Home link’) allowed on-line viewing of statements, bank transfers and bill payments. In order to make bank transfers and bill payments, a written instruction giving details of the intended recipient had to be sent to the NBS who set the details up on the Home link system.

Typical recipients were gas, electricity and telephone companies and accounts with other banks. Details of payments to be made were input into the NBS system by the account holder via Prestel. A cheque was then sent by NBS to the payee and an advice giving details of the payment was sent to the account holder. BACS was later used to transfer the payment directly. Stanford Federal Credit Union was the first financial institution to offer online internet banking services to all of its members in Oct, 1994.

Definition of the Online Banking The concept of internet banking has been defined in many ways. Daniel (1999) defines electronic banking as the delivery of banks’ information and services by banks to customers via different delivery platforms that can be used with different terminal devices such as a personal computer and a mobile phone with browser or desktop software, telephone or digital television. •According to Pikkarainen, Karjaluoto, and Pahnila (2004)  Define online banking as an internet portal through customers can use different kind of banking services ranging from bill payment to making investments. With the exception of cash withdrawals, internet banking give customers access to almost any type of banking transaction at the click of a mouse, by De young, (2001). Indeed the use of internet banking as a new alternative channel for the distribution of financial services has become a competitive necessity instead of just a way to achieve competitive advantage with the advent of globalization and fiercer competition as explained by et al. 2004. All the banks using the internet as an additional channel or a bank using only the internet as delivery channel are now equal footing to offer their banking services on the internet and to compete for around the world. •Robinson, (2000) and Sathye, (1999) Banks uses internet banking as it is one of the cheapest delivery channels for banking products (Pikkarainen 2004). Says such service also saves the time and money of the bank with an added benefit of minimizing the likelihood of committing errors by the bank tellers (Jayawardhena of 2000).

Also said internet banking offer services regardless of geography and time, and banks thus provide its services to the customers for them to use at their convenience. As Karjaluoto of 2002, Argued “internet banking is no longer bound to time and geography. Customers over the world have relatively easy access to their bank accounts, 24 hours per day, and seven days in a week. The author further argued that, with internet banking services, the customers who felt that branch banking took too much of time and effort are now able to make transaction at the click of their fingers.

In accordance with Stewart (1999) Claimed that the failure of the internet in retail banking is largely attributed due to the lack of trust consumers have in the electronic channels. Richness and sound presence of internet banking environment will affect banks’ ability to create a trusting relationship between their customers and employees. The concept of internet banking is a delivery channel for banking services. Banks have used electronic channels for year to communicate and transact business with both domestic and international corporate customers.

Internet banking acceptance studies Internet banking acceptance has gained special attention in academic studies during the past five years as banking journals have devoted special issues on the topic (Mukherjee and Nath, (2003). Give two reasons that can be established for online banking development and diffusion. First, banks can saves costs by offering online banking services. It has been proven that online banking channel is the cheapest delivery channel for banking products one stabilized (Gigho, 2002).

Secondly, banks can reduce their branch network and downsize the number of services staff, which open the way for online banking as many customers feel that branch banking requires too much of their time and effort. Therefore, time and cost saving and freedom from place have been found to the main reason underlying online banking acceptance. •According to Hamilton and Hewer, (2002) Says internet banking offers many benefits to bank as well as to customers. However, when compared globally the percentage of online user is not as high in the USA as other regions of the world.

There can be several reasons for this, the most obvious new online banking has no social dimension, and they are not served in the same way as in a face to face situation at a branch. Plus there are issue of security and privacy. The businesses benefit of internet banking, according to Gow (1997). It to generate additional revenue, improves customer service, extend marking and increase cost of savings. Banks enjoy the benefit as well. •In Accordance with Ainscough and Luckett (1996)

The provision of customer interactivity is an important criterion that attracts users in the delivery of internet banking. Gerrard and Cunningham (2003), also identify other factors of paramount importance in ensuring the success of internet banking, the ability of an innovation to meet users need using different feature availability on the website. For instance, the provision of interactive loan calculators, exchange rate converters, and mortgage calculators on the website draw the attention of both users and non-users into the banks website.

A UK study uncovered five key service quality attribute, such as security related issue, convenience, speed and timeliness of the services, and product variety diverse features (White and Nteli 2004). Therefore it hypothesized that convenience has positive effort on customer satisfaction. Customer has doubts about the trust of the internet banking privacy policies (Gerrard and Cunningham 2003). Trust has striking influence on user’s willingness to engage in online exchanges of money and personal sensitive information.

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