Results so far:

Participate in the vote here: http://www.helium.com/debates/136035-should-we-switch-from-paper-to-electronic-bank-and-other-statements

Want to have an example of such an e-statement ?
Look at it here: http://www.absa.co.za/absacoza/content.jsp?/Home/Personal/Products-and-Services/Electronic-Services/eStatements#The_advantages_of_eStatements

Back in the pre-Internet caveman days, the very concept of a high interest savings account consisted of a bank deposit at your local neighborhood banking branch that offered an underwhelming .50% interest rate on deposits (merely half of a single percentage point). For most aggressive savers at the time, the only practical way of achieving a high annual percentage yield (APY) on bank deposits was to seek out the best CD rates by setting up a certificate of deposit account. However, given the less liquid nature of CDs compared to savings accounts, and the greater complexity with CD management and rollovers upon expiration, most bank consumers ended up accepting the low APY rates of the day.

 But with the emergence of the Internet and the World Wide Web came a new innovation with the force to change the financial landscape forever – online banking. With the rapid ascension and development of online banking came the emergence of online-only savings and money market accounts. With the ability to tap into substantially lower overhead costs, and the ability to eliminate the need to operate expensive bank branches or pay live tellers to manage them, online banks quickly surpassed traditional retail banks in what they could offer consumers in the way of improved 24/7 on-demand services and higher rate offers for bank deposits.

Article continues here: http://www.moneybluebook.com/review-of-ing-direct-savings-and-electric-orange-checking-accounts/

** EDITOR: here is yet another headline from around the globe that reminds us of how close we really are to the end of this world system. As the owner of a small cleaning business I have had to prepare myself to eventually get to the place where i myself would no longer accept cheques from cusomers – but strictly cash  while I can do so… in preparing for the cashless society coming. To that end I will not take any chip so I wont be able to buy or sell… what will YOU do?? I expect this same banking thing to happen her ein North America in 2010..***

Source: Ireland Online ( Dec 22nd, 2009)

One of the country’s larger banks has told to its customers that it is to stop handling cash in its branches.

National Irish Bank says it is moving to a Scandinavian model of “cashless banking” – with an increased reliance on ATMs and debit cards.

NIB has told customers that its branches will no longer handle cash withdrawals or lodgements, nightsafe lodgements or foreign exchange cash.

They are instead urging customers to use ATMs or get cash back on their laser cards if they need notes. Branches will continue to accept cheques and postal orders.

The bank says the idea of “cashless banking” will be rolled out over the next 18 months, and that the model is that used by its Danish parent company.

NIB says Irish dependence on cash is amongst the highest in Europe.

Read more HERE

How can banks absolve themselves of blame in phishing scams and such?
So far, I have successfully managed to ignore several hundred attempts to phish my bank details by email spam and live phone calls. I’ve also managed to evade Trojans, which attempt to extract those details from my computer, and I file or shred any hard copy that has my details on it.
What about the day one gets through?
My bank account has very modest comings and goings and it wouldn’t take much to clean me out. My bank knows my regular outgoings. Surely it’s not beyond the wit of their software to raise a query if there is unusual activity, or if a withdrawal request means I’m likely to be able to meet regular commitments.

The Government (Maggie Thatcher) repealed the Truck Acts allowing Employers to insist on wages being paid into a bank account. The present Government is trying to force pensioners etc. to have bank accounts for payments from the State.
Everyday we are edged closer to electronic banking, with all our transactions open to demolition by a single button press.
Electronic money may be a sensible way to handle things (assuming no power failures, or solar flares knocking out computers, or such.) but we need Government to set up measures that will allow us to feel secure that we will not experience the panic and despair that engulfed the arch villain in the film “ghost” and those who have, perhaps foolishly, already been scammed.

Credit Unions rock!  What I like most is that credit unions provide the capability to set up “sub-accounts” which are basically the ‘virtual envelopes’ that I discussed in the previous Electronic Banking blog.

I have been using my credit union for over 5 years and the sub-account capability, friendly service, security, and local community focus are the big reasons why.  I like the idea that I can walk in and they know me, serve my needs in a friendly manner and offer as much or more than banks.  And yes, deposits are insured by the National Credit Union Agency (NCUA), similar to the FDIC for banks.

As I state in my book, virtual envelopes are one of the key strategies to sound financial budgeting and replace the outdated cash envelope system.  The ’sub-account’ is the tool that allows you to create virtual envelopes at your credit union.   The ’sub-account’ capability is typically not available at a bank, at least not in my geographical area.  Hence, I do business at my local credit union where I have a savings account, a money market account, and a checking account.  (I also have a business account, but that’s beyond the scope of this blog).

The money market is used to hold medium term savings which are items 1-2 years out.  The checking account is used to pay bills from, either by check or debit card.  The savings account is where it gets interesting and basically holds only a $5 balance because it’s only an umbrella account.  Underneath that umbrella account are the ’sub-accounts.’  I have 8 ’sub-accounts’ that contain the money that I use to pay for the respective items in that category.  Here is a list of my ’sub-accounts:’

• Real Estate taxes
• Home repairs
• Car repairs
• Season tickets
• Son’s college
• Vacations
• Charity
• Christmas gifts

Your list of ’sub-accounts’ would be different based on your life circumstances and what you need to actively fund for the coming year.

These ’sub-accounts’ are the virtual envelopes where you can deposit money and transfer money into and out of as needed.  So it’s a saving account, a virtual envelope, and a GREAT budgeting tool!

If you have any experiences or comments, please post!

To get a copy of the best budgeting workbook and spreadsheet on the planet, visit:  http://PersonalEconomicCoachingLive.com

Todos AB, a leading provider of security solutions for eBanking and eCommerce strong authentication, has announced about its launching of onMobile for iPhone(TM) and iPod Touch(TM) and updating onMobile Java MIDP technology and new application for the Android platform. All these innovations will give banks a full range of solutions for user authentication and transaction verification using the latest mobile phones.

Todos designed unique technology for users to feel safe and confident transacting with their phone. Todos’s Dynamic Signatures allows a bank to adjust the level of security according to the riskiness and value of the transaction. Sign-what-you-see confirms key details of a transaction with a user on their mobile phone screen before they sign it. Secure Domain Separation gives ecommerce, banking, digital signatures and one-time passwords their own secure channel simplifying the process for the user.

Article continues here: http://www.ecommerce-journal.com/news/25355_todos-makes-mobile-authentication-reliable-and-convenient?drgn=1

Alliance & Leicester has started providing free software to its Internet banking customers which gives an additional layer of protection against phishing attacks and fake websites, the bank announced today.

The innovative ‘Rapport’ anti-malware software from Trusteer, silently protects information entered by users into their Internet browser, including their unique customer ID and PIN, from malicious software like Trojans which could be hiding on some computers. It will also protect against redirection to fake lookalike web sites.

Rapport works alongside existing anti-virus software and firewalls to provide additional protection when banking, by ring-fencing information away from the Trojan. Rapport is currently available to over one million Alliance & Leicester’s Internet Banking customers who can download this software from the Alliance & Leicester website.

Article continues here: http://www.finextra.com/fullpr.asp?id=30772

One past useful budgeting technique was to set up your saving/bill paying using the envelope system.  Basically it consisted of keeping separate envelopes for your spending categories and populating them with cash from your income source.  Then when a bill came due, you simply paid it from the appropriate envelope.

There are many disadvantages of this old technique in today’s complex world, such as keeping all that cash around. In today’s electronic world, there’s a version of the envelope system that can take the old proven approach and revamp it for the 21st century:  Virtual Envelopes.

By Virtual Envelopes, I’m referring to a set of sub-accounts that you set up at your banking institution to correspond to your spending (bill) categories.  When you deposit money, you simply allocate the appropriate amounts to the sub-accounts, based on your spending plan or budget.  It’s easy to move money around your various spending categories or sub-accounts if and when you need to.  When a bill comes due, you simply transfer money from the sub-account to your checking and then electronically pay the bill.

Most credit unions have the ability to set up sub-accounts and access via the web, for no charge.  For those banks that do not offer sub-accounts, there are alternative methods such as the  Mvelopes(R) fee-based system.  (We’ll have a separate review of Mvelopes(R) at a later time).

I have been using the sub-account Virtual Envelope method through my credit union for several years and it works beautifully!

Do you have any experiences with virtual envelopes and electronic banking that you’d care to share? Post them here.

I have dedicated an entire chapter in my workbook to Electronic Banking and the virtual envelop approach.  Check it out at http://PersonalEconomicCoachingLive.com

The Bank for International Settlements has – already some time ago – developped a nice document about risk management in electronic banking. You will find an interesting list of the specific threats to risk management of your brick and click bank but also a nice suggestion of the responses to this risks. It will surely help to redraw or update the risk policy of your bank.

Here you can download this usefull document : http://www.bis.org/publ/bcbs98.pdf

Raiffeisen Bank Romania has ordered 190,000 Todos A200 smartcard readers. The bank’s objective is to increase security for its online customers and, as a result, increase their trust and confidence in eBanking with Todos’s advanced technology. Raiffeisen Bank is one the country’s leading banks with more than two million customers. It is a subsidiary of the Austrian Raiffeisen International Bank-Holding AG, which in turn is a fully consolidated subsidiary of Vienna-based Raiffeisen Zentralbank Österreich AG (RZB).

RZB operates one of the largest banking networks in CEE, covering 17 Central and Eastern European markets through subsidiary banks, leasing companies and other financial services firms. The group’s nearly 62,000 employees service 14.9 million customers via more than 3,200 business outlets.

Article continues here: http://www.pr.com/press-release/180917

Monday 17 August 2009 | 04:34 PM CET

Kuala Lumpur: Maybank says it sees high growth potential for its mobile banking services and plans to double its growth this financial year.

The bank recorded an average of RM2 million worth of transactions monthly for its mobile services last year.

Maybank this week will also become the first financial institution in the country to be introducing the first, free and downloadable banking application called M2UMap for the recently launched iPhone.

In a statement here Friday, Lim Hong Tat, Maybank’s Senior Executive Vice President and Head of Consumer Banking, said Maybank had good potential to expand its mobile banking services via the iPhone platform.

“Our mobile banking services has seen a growth of 36 per cent in our customer base in 2008 compared to the previous year.

“Our market share of mobile banking customers in Malaysia represents about 45 percent of the total number of 530,000 as at end December 2008 according to Bank Negara’s Report 2008,” he said.

Meanwhile, Maybank is introducing the M2UMap service in Malaysia this week after hitting Maybank Singapore in May. This is expected to mark a new milestone for the mobile banking services in Malaysia and to iPhone users.

Source: http://www.dailyexpress.com.my

Todos AB has become a member of OATH (Open Authentication), an industry initiative designed to provide an open specification for strong authentication to help combat online fraud globally.

Since eCode is an open, flexible authentication platform that supports any form of authentication, including smart card readers, tokens, PKI and mobile solutions, it is natural that Todos AB includes OATH compatibility within its eCode back-end architecture.

Through its OATH membership, Todos AB will provide the community with the benefits of the company’s vast experience of large-scale deployment of authentication solutions to the global financial sector. Already compliant with all other key global standards, the addition of OATH support means that eCode retains its ability to provide uniquely flexible compatibility with authentication protocols.

“eCode has become widely adopted by banks around the world – largely due to the fact that it has flexibility and compatibility as its key cornerstones.” Peter Gullberg, VP Product Strategy says. “By including support for the OATH standard we ensure that eCode remains fully able to meet any authentication requirements a bank might have.”

Todos AB joins more than 80 other leading device, platform and application vendors and end-user customers of authentication technologies, all of which are dedicated to creating an open authentication architecture that facilitates the growth of both eBanking and eCommerce.

Source: http://www.abcmoney.co.uk/news1/

E-banking portals are a critical part of a corporate treasurer’s toolkit. These comprehensive platforms often combine cash management, trade finance and securities services functions into a single engine empowering users to do more from their desktops.

Over the past decade, banks have continually acknowledged customer demands for web-based products by developing ever more capable e-banking portals. For example, Standard Chartered Bank launched its first electronic host-to-host connection with clients in 1998, added product-specific web portals in 2002, and created a single engine platform Straight2Bank in 2007.

Today, comprehensive and functional web platforms targeted at corporate treasurers have become ubiquitous in the banking market. Malaysia’s Maybank has Maybank2e.net. Emirates NBD in the United Arab Emirates offers smartBUSINESS, and Wells Fargo in the US has Wells Fargo CEO.

But most banks mask these very capable systems behind obsolete interfaces that barely cross the web 2.0 threshold. Web 2.0 refers to a second generation of web development and design that is characterised by information sharing, interoperability, user-centred design and collaboration.

Article continues here: http://www.financeasia.com/article.aspx?CIaNID=107456

Fraudulent activities  in the use of the Automated Teller Machine (ATM) and other e-banking services will soon be a thing of the past with full implementation of the Central Switch of the Central Bank of Nigeria (CBN). NCS is designed to provide interconnectivity and interoperability amongst approved electronic fund transfer (EFT) switch initiatives in Nigeria.
The Central Switch is expected to solve the problems of connectivity and other hitches while using ATMs or other e-banking products on Pont of Sales (POS) terminals.
More so, efficiency in transactions will be better guaranteed, and assure lowered processing time for transactions, using any bank’s card within banking halls or any other bank outlet.

Article continues here: http://www.businessdayonline.com/index.php?option=com_content&view=article&id=3504:central-switch-to-curb-atm-fraud-enhance-e-banking-services&catid=54:banking-finance&Itemid=326

Jamaica’s largest commercial banks are reporting a significant growth in the number of customers resorting to online banking, a free service. The trend suggests a direct response to banks’ increasing service charges, which represent billions in annual revenues for the big two – Scotiabank and National Commercial Bank (NCB).

Bank of Nova Scotia Jamaica (BNS), which upgraded its online service in the first quarter of this year, has already seen a 25 per cent jump in the use of online banking only halfway through year, according to Maya Walrond, senior vice-president of customer experience at the institution. Some 37,000, or 10 per cent, of its active customers use  the e-banking service of the bank, which is the local sector leader in deposits.

NCB, the largest bank by assets, is reporting that e-banking represented 46 per cent of all transactions in May this year, up from 42 per cent recorded in January. Together, BNS and NCB control 70 per cent of the commercial banking market.

Article continues here: http://www.jamaica-gleaner.com/gleaner/20090628/business/business1.html

Let’s have a look at the different channels that a clicks & bricks bank has to take into consideration and that many European banks already have available. They are as follows:

• Branch network and ATM
• Internet Banking
• Mobile Banking
• Web Spaces
• Phone and Fax Banking
• WAP and I-mode

Let’s now look at these channels one by one and see what they  are composed of.  We shall also see the trends in accessing the bank.

 branches

Still an essential element and contact channel with the client, branches are being reduced in number (quantity) but improved in quality: more ATM (automated teller machines), cash dispensers, improved services for client advice.

 There are some new services appearing, like buying tickets for shows and concerts and cultural events in the branches and the development of self-service branches, integrating the latest technological development of self banking (terminals, cash dispenser, enhanced services at the terminals etc)

 ATMs

Although designed merely to retrieve or deposit cash, new ATMs also offer basic banking services like transfers, standing orders, direct debits etc. More advanced At more advanced ATMs you can also buy tickets for cultural events, reload your mobile telephone card etc.

The identification and contact with these “machines” also is changing, with some now accepting  biometrical recognition measures (e.g. pupil recognition).

Banks are also aware that these tools are a good communication channel and apply the same marketing techniques to promote new products and banking services through the ATM screens.

ATMs are also available outside bank branches in supermarkets, in railway stations and airports,  post offices or public places in general where a client may need financial services.

 Internet banking

The key elements of this channel are the following. After the Internet bubble (1998 – 2002), some pure internet banks had to close due to insufficient clients,  huge deficits remaining in their Profit and Loss statements etc. Most banking groups integrated the internet banks as an additional channel, developing as such the successful concept of a “bricks&clicks” bank.

In the meantime, a new generation of clients have appeared. They are used to working with computing tools and the Internet, they want to do their banking when they want (outside bank opening hours) and they like an independent approach to financial services (e.g. day traders). It is not only younger people who have grown up with computers but also older people (who are retired or have taken early retirement)  who interested in managing their financial accounts or portfolio.

 With these new and demanding clients, the internet channel in whatever bank (universal, private banking, institutional bank etc) is a bare necessity from a competitive point of view, since nowadays clients are more on the move than in the past and want to do their banking in their hotel during the holidays, at home on Saturday morning and if their own bank does not offer this service a lot of its competitors do.

 Internet banking is the channel which came to maturity and so had a huge success as a way to satisfying new and demanding clients, winning clients from competitors in a stagnating market, on a national or an international level, since internet banking has no frontiers. (e.g. a client in the Benelux can easily use his internet bank account in Belgium, Luxembourg or in the Netherlands, wherever he lives).

 Mobile banking (m payment)        

      This new banking channel offers the latest developments in financial services. You can pay for your parking with your mobile phone, you can receive your latest bank statement via messaging (SMS), and do some basic transactions like transfers or even receive alerts for orders.

The three main tools here are the WAP technology (although not very successful because of the lack of acceptance by clients and related technical problems), messaging (SMS), cheap and very much used and last but not least the third generation mobile phones for which appropriate services can be developed taking advantage of the broadband access to this channel.

Combinations between the internet channel and the mobile phone are coming up like messaging from the outlook took to and from the cellular phone for messages ,alerts etc. This system requires a special production environment (computing) and a mobile communications platform to access the off-site personnel or clients

Yet another banking channel, this equipment allows clients to connect to their internet bank accounts for free inside the branches (during branch opening hours) or surf on the internet. In this special corner of the bank an ATM is frequently also installed for cash operations related to the bank operations. Everything is in one space, where the client usually does not have to queue and can quickly and quickly execute his orders. This leaves the branch employees more time to invest in the relationship with their demanding clients or to give advice on more complex transactions, acquisition of new clients, improvement of portfolio etc.

If we need a definition, a webspace is a combination of ATM and internet banking inside the branch, offering as such a very complete service platform.

 Phone and Fax Banking

Another channel, still popular with a lot of clients and very flexible (available 24 h a day, 7 days a week) is phone banking. After login and identification, the client speak to a friendly computer voice which guides him through the different operations he wants to execute: ordering new documents, making transfers, modifying direct debits, etc.

For good clients, special toll-free phone numbers can be created on a national or international level as a kind of special offer or to improve the attractiveness of this banking channel.

The pitfalls of this channel are:

-          no screen to follow up the transaction or receive order confirmation

-          limited possibilities of transactions (mainly used for transfers)

     With fax banking, the client can send orders (transfers, stock exchange operations, transfers between his own accounts etc.) by fax. A special agreement with the bank must be signed beforehand  to make orders valid, recognise the signatures etc. Clients who find themselves a long way from the bank can also communicate and send orders to the bank outside banking hours.

 Wap and I-mode

 Although part of the mobile banking channel, it is important to differentiate between WAP banking (mostly European) and I-mode (specially developed by DoCoMo in Asia). In Europe WAP (Wireless application protocol) imposed a special technology on mobile phones and was not so well received. In Asia however, mobile phones were specially developed and sold (extremely successfully), taking advantage of every technical development that phones could offer: appropriate screen for reading bank statements, sufficient security for sending messages to the bank etc.

To summarise this we can confirm that multichannel banking has emerged, integrating electronic or e-banking as an additional channel in it’s strategy to reach, acquire or satisfy clients. Branches are also giving improved computer services through new generation of ATMs, self banking services or Web spaces. The e-banking channel’s flexibility (accessibility on 24 h basis 7 days a week), is also a quality of Phone banking, although the services offered are failry limited (mainly transfers). The third most important (and strongly developing ) channel is also over the phone and is M-banking  mobile phone banking), with services such as M-payment, WAP access or I-mode in different countries. The third generation mobile phones will even improve access thanks to broadband and make it possible to offer new banking services on this channel.

Azfinansbank’s new branch to operate 24 hours seven days a week will apply technologies (e-exchange points and automatic acceptance of deposits) not used in any of the local banks. Among them are, and all banking services,” he said.

Azfinansbank is also going to introduce SMS-banking.

Continued here: http://abc.az/eng/news/corporate/35782.html

Imagine you are a bank with no branches or ATMs, almost three million customers and only 195 employees in total. This is e-bank Japan, which provides 24-hour real-time electronic services. With a corporate vision that mobile computing can give customers their own personal branch in the future it is an example of a company that has totally automated its business using the latest technology.

Japan may be the first to adopt this kind of technology, but it is something that could make sense in the UK too. After all, e-bank Japan has about 200 staff, of which 30 are internal IT staff, yet it manages almost three million customer accounts. The combined attractions of reduced costs and increasing customer demand could drive mobile banking adoption in here post credit crunch.

Continues here

The advanced online banking functionality has been developed as part of the existing core banking system, BEAM Core, which Sword Apak implemented for Unity Trust Bank in 2006. Sword Apak’s new module will significantly enhance the online banking service provided by Unity to its customers.

Internet Banking users will now be offered online banking with single, dual or triple signatory arrangements on both internal and external payments. This is especially useful for organisations that require more than one person to authorise payments and are located in geographically different areas, which is a common feature of Unity’s customers who include charities and social economy organisations. Customers will also be given greater access to account information as well as a comprehensive view of multiple accounts.

Sword Apak’s enriched page layout ensures that the module is more user friendly for customers who will also benefit from improved cross browser compatibility. Kevin Turmore, Managing Director at Unity Trust Bank, commented: “Sword Apak’s Internet banking module has helped Unity to build on its established track record of providing safe, secure and speedy access for our customers.

The new functionality offers a number of advanced features which means Unity is able to continue to provide a modern and user friendly online banking service”. Technical Director for Banking at Sword Apak, Ray Moy, added: “Sword Apak is an established provider of specialist banking solutions for medium sized, customer focused banks. We are of course very pleased with the latest implementation of our Internet banking system for Unity Trust Bank, whose core technology requirements we are proud to have supported for over ten years.”

Going to the bank and queue up for people continue to be a chore and the convenience, ease and heightened security of online banking make it a good proposition. The innovation of technology led many business services as well as personal banking to be put forward online. As more people get comfortable with online banking, more are converted. Online electronic banking includes bill payment, check writing and mailing as well as fund transfer, balance enquiries and host of other services.

Online banking is not just for the biggest banks as many smallest banks are coming together providing their depositors the ability to bank online. Increasing more people get internet savvy, they are inclined to incorporate the use of personal computer and wireless devices into their management of their daily lives, making electronic banking well received. It will maintain to be in great demand in the foreseeable future as it can be available 24/7.

The advent of internet and computer also make the chore so much easier as well as efficient. Electronic means to accomplish our banking requirements consequently gain in popularity as increased services are touted online.

Continues here: http://9lot.com/300092-Online-Electronic-Banking-Services.html

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