Online Banking
Learning Objectives To learn how society has been affected by online banking
What main ‘services’ do customers get from online banking? There are others….
Transfer Money You can move money from one account to another (even internationally)
Apply for loans / mortgages The website can see if your eligible for a loan and can afford the payments.
Pay Bills You can pay Credit Card Bills / Utility Bills very easily.
Task – Page 38
What Hardware is needed for online banking? – Customers Side What is the most essential thing you will need to go on the internet?
What Hardware is needed for online banking? – Customers Side Now to connect to the internet?
What Hardware is needed for online banking? – Company Side How will the company run the a website?
What Hardware is needed for online banking? – Company Side Wireless will be too slow, with all the data, so how will the company connect their network?
What Hardware is needed for online banking? – Company Side With all these cables a simple router won’t have enough ports.
What Hardware is needed for online banking? – Company Side What could they use to protect their data from hackers?
Task – Page 36
What software is needed for the client? How will the client view an online bank?
What software is needed for the company? Websites are hard to create, what could the company use to help them? A web authoring IDE Integrated Development Environment
What software is needed for the company? How will they protect themselves from hackers? HARDWARE IS BETTER FOR THIS!!
Task – Page 36
What security issues are associated with online banks? Hackers
What security issues are associated with online shopping? Identity Theft
What security issues are associated with online banks? How can companies protect your data? Encryption
What security issues are associated with online shopping? Pharming Phishing Spyware
Task – Page 36
Can close down branches, or hire less staff (save money). Advantages to the Banks
Easily contact customers about offers / information. Advantages to the Banks
Being open for business 24/7: Means customers can do what they need at a convenient time. The alternative would be for banks to open all day. Advantages to the Banks
Disadvantages to the Banks Start up cost – businesses will normally need to pay out a lot of money to have their websites professionally designed and developed.
Disadvantages to the Banks Website downtime – if the website goes down, no one will be able to do banking – this could cause loss of money / give bad reputation.
Personal touch – no personal contact with the customers can drive people away. Disadvantages to the Banks
Online Fraud – a lot of online fraud, means there is a risk of losing money with phishing and pharming.
Task – Page 36
Some online ‘e-accounts’ are free to setup so customers can make a small saving. Some accounts require a monthly fee. Advantages to the Banks
Customers can bank at a convenient time for them. Advantages to the Customers
Customers can bank at a favorite bank. even when they are miles away. Advantages to the Customers
Customers can shop around for loans, insurance, mortgages etc really easily. Advantages to the Customers
The Internet allows customers to look at a wide banks all around the world. Advantages to the Customers
Security concerns surrounding the financial information that is stored about customers Disadvantages to the Customers
concerns over what information banks are storing about customers. Disadvantages to the Customers
Task – Page 38