Possibilities of e-banking

1. Possibilities of e-banking Marek Chlebicki Grzegorz Sieczkowski HermannOssowski International Programme Virrat 2006

2. Poland • Republic • Official language – Polish • Area 311,904 km2 • Population ca. 39,000,000 • Internet TLD .pl (also .eu)

3. The Capital of Poland Largest city: Area 516.9 km² Population 1,692,900 Located on the Vistula river Warsaw

4. Warsaw University • Established in 1816 as The Royal University of Warsaw • Nowadays • 18 schools and 25 units • 60 766 students • 5 531employees – 2816 academic teachers • www.uw.edu.pl

5. BUW • Founded in 1817 • Library holdings: 2,483,787 vol. • One of the three largest collections of scholarly books in Poland • From 15.12.1999 new modern building • www.buw.uw.edu.pl

6. School of Management • Founded in 1972 as the Institute of Management Studies • The oldest university faculty of its kind in this part of Europe • Employs 12 full professors, 3 associate professors, 15 people with a higher doctorate, 22 doctoral students • Partner of Socrates Erasmus Programme • www.wz.uw.edu.pl

7. School of Management

8. Born 26.05.1982 in Warsaw Work experience: One year in life insurance companies (Fin Life S.A.) One year in Raiffeisen Bank Polska S.A. Studies: Business Management Born 01.09.1982 in Warsaw Work experience: Racing Team Manager Board of Management Proxy Studies: Quality Management Marek Chlebicki Grzegorz Sieczkowski

9. Germany Emden • Area:357,050 km2 • Population: • ca. 83,000,000 • Internet TLD .de

10. Emden • Located directly at the Northsea • Inhabitants: >50.000 • Third biggest harbour in Germany • Capital of Ostfriesland

11. FH-OOW • University fusion of five cities • Students: 10,000 (3,800 in Emden) • Professors: about 300 • Founded in 2000

12. Hermann Ossowski • Born 23.09.1981 in Flensburg • Work experience: Six month in the Copenhagen stock exchange • Studies: Business Consulting and information systems

13. Possibilities of e-banking International Programme Virrat 2006

14. Internet banking– term used for performing transactions, payments etc. over the internet through a bank’ssecure website. • (Any other definition could vary is correct.) • So internet banking means for real that… • If you have a computer and a connection to the Internet, Your excuses for not trying online banking and bill paying have just dried up!!!

15. P – Place? P – Price? P – Promotion? P – Product ? What is the most important in e-banking in the marketing point of view? • THE 5 P !!! • P – PEOPLE – BANK CUSTOMERS

16. E-banking website may meet hypothetical expectations of an Internet businessbut fall down flat when it comes to interactive design and user experience. • Basics of e-banking effective website design: • Always keep your customer in mind. • Clarity of intent and navigation. • Do not confuse the audience. • Let your customers control their web experience. • Regularly audit yourself.

17. Web channels need to market: The bank’s product and services Present corporate information aboutglobal businesses The websiteshould provide customers to: Access their financial information – anytime; anywhere Transact real-time Make empowered online financial decisions Marketing point of view. • First of all website is for customers to provide them bank’s core online products and services.

18. The most common advantages for customers usinge-banking. • Possibility of reviewing accounts 24 / 7 • Possibility of using bank products and services from every place with Internet connection • Lower prices of account operations • Faster commissions realization • Easy communication • Money and time saving • Personal safety and protection from robberies

19. External: lack of infrastructure (especially communication infrastructure) limited Internet access costs, upkeep, total profits Internal: routines, inertia, habits safety feeling lack of information and knowledge E-banking safety – barriers for customers: Being afraid of data privacy in the internet: 45% Being afraid of data security and data manipulating: 43% Lack of trust to e-banking security systems: 48% Lack of knowledge about internet securities: 65% The most common barriers for customers not usinge-banking.

20. 1000 people questioned across UK in August 2005 83% - must do more to protect themselves online With 53% - saying they didn’t know how to improve security 40% - were afraid that criminal can clear their bank account 85% - didn’t think that doing something about cyber crime was their problem 49% said business should try to tackle it 11% think the gouvernment should solve it Survey findings

21. Only 28% update security programs weekly 14% update monthly 32% did it every three months 6% NEVER BY COMPARISON: Anti-virus companies update their scanning systems EVERY HOUR The survey found that those who were doing something to protect themselves often didn’t do enough

22. Some bad habits were revealed by the survey too • 22% opened attachements on e-mails from people they didn’t know • One of the many routes malicious hackers use to get viruses, worms, spyware onto PC’s • A further 9% happily forwarded these mails to friends and family

23. Fears vs. threats Risky business ? • Ignorance about basic computer security • Javelin Strategy and Research • Unsecured online transactions were responsible for fewer than 2,5% identity theft cases. • At the Bank of America • Less than 1% of fraud occurs via online transactions

24. Beyond the single password • Log-in security • Contain both numbers and letters (also capital) and change it periodically • Biometric fingerprint readers • Tokens – password valid for 60 seconds • Transfer confirmation • Another, different password • Sending code to your mobile via sms • Bank of America - Images and secret questions • Automatic notifications - unusual transactions take place or if account balances goes below a certain level

25. Staying safe online6 steps to improve security • Use anti-spy and anti-virus programs with at least weekly basis update • Install a firewall and make sure it’s switched on • Update your operating system • Disable pop-ups in your browser • Never click on e-mail links to enter bank’s site • Monitor your computer and stay alert to threats

26. Banks • They can do a lot to secure its clients by: • Using https and other safe protocols • Multi stage log-in process with application of hi-tech devices • Further securities to do a transfer from account • Teaching about fraud prevention • But their efforts can an be ineffective without CUSTOMER will

27. Secret Socket Layer (SSL) 1 • e.g. : • https • Pop3 • Smtp 2 3 4

28. Phishing Phishing = "fish" for users financial information and/or passwords by masquerading as a trustworthy company in an apparently official electronic communication.

29. Example: Chase

30. Phishing • Biggest problem in internet security is not hard- or software, but the dupability of users • In the next years customers will be more sensitized because of increased Phishing

31. How to do e-banking? Balance secure userfriendly

32. Conclusion • e-banking should always be focussed on the customer • The safety must be as secure as needful BUT as easy as useful!

33. Thank you for you attention!