1. E-BANKING

2. Internet Banking  Internet as new communication medium.  Open up current IT-systems to the outside world.  Automating relations.  What is e-banking  1. using the internet to process financial transactions  2. deliver new online services Introduction

3. Internet Banking Status current Internet Banking; There is no uniform solution No realtime transaction processing  Batchprocessing  Not realtime Banks are having a hierarchical service structure in a very complex infrastructuur Standard products versus tailormade Current IT systems tend to have a high complexity. This implicates high investments to integrate front-office with back-office (via the Internet)

4. Internet Banking Current banking products online?; High product information but relative poor service level  Only paying and saving accounts are on-line  No interaction (a different accounts per service) Unilateral  Based on advise (productsupport)  Documentation not suitable for internet applications  No possibility to individualize because of the restrictions of organisations and techniques

5. Internet Banking Why is a mature player on the internet lacking ; Organizational restrictions (Hierarchical model) Web-based techniques;  No interaction and two way communication possible.  Insecure; Viruses, hackers, Spam Product-offering not suitable for internet Restrictions through current IT systems High investments and overhead costs (not profitable)

6. Internet Banking Conclusion: The success of e-banking is totally dependant on the technology and the way it is implemented. The potential of Internet Banking is enormous!

7. Potential Statistics people online ; September 2002 Asia/Pacific 187.24m Europe 190.91m North America 182.67m Latin America 33.35m 594.17m a data monitor report of the bank industry estimates a growth to 66.2 million online accountholders in 2004 against 26.2 in 2003!

8. Possibilities General possibilities; Personal marketing through benchmark capabilities Transaction oriented, realtime; direct response of users, more insight in individual requirements. International coverage Increasing profits Integration of administrative and logistical systems Time to market Individual customer profile, freedom of choice of product and services Userfriendly (ease of use and ease of adoption)

9. Internet Banking E-banking with Beeyond!

10. E-bank Complete integrated and realtime banking-model. Total concept within 1 technological model. Integrated financial service linked to one accountnumber Economies of scale; from Iran access to a worldmarket! Extensive services and products and individual oriented Increase of throughput and decrease transaction lead-times

11. Transaction center for online payments Online payments  Creditcard  Debitcard via point of sale (pin)  Collections  Bank transfers Authorisation and authentication of online payments Clearing transactions to the bank (netting) Settlement (physic money transfer) Clearinghouse

12. Payment Methods Netherlands Cashguaranteed payment CreditCardguaranteed payment (within creditlimit) DebitCardguaranteed payment Collectionsnot guaranteed payment Online Bank transfersnot guaranteed payment A transaction is authenticated when the combination of the cardholder, the credit card and the account number is validated. Risks are higher on the internet because of the lack of physical control capabilities to authenticate a transaction. The ClearingHouse takes over this risk of authentication. The ClearingHouse (like interpay) obliges strong security methods in the e-business software. Authentication and authorisation

13. Issuing bank Acquiring bank ACH Acquiring clearing house C.C Community center Swift National bank payer receiver Settlement Authentication authorisation

14. Issuing bank Acquiring bank ACH Acquiring clearing house C.C Community center Swift National bank payer receiver Settlement Authentication authorisation Beeyond technology

15. The road to e-banking Transition path 1.Unlock information (2skin)  Keep existing database and maintenance applications  Build necessary applications to extract information 2.Build interactive processes  Replace batch processing to interactive processing 3.Implement new infrastructure  Implement new interactive processing using internet/intranet 4.Implement e-commerce functions  Build front office internet applications for customers 5.Replace backoffice systems  Replace all traditional applications (RPG) 6.Implement e-banking concepts  Build state-of-the art applications to support e-banking