E-BANKING E-banking is defined as the automated delivery of new and traditional banking products and services directly to customers through electronic, interactive communication channels. E-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 e- banking services using an intelligent electronic device, such as a personal computer (PC), personal digital assistant (PDA), automated teller machine (ATM), kiosk, or Touch Tone telephone. While the risks and controls are similar for the various e- banking access channels,

Retail Services Account management Bill payment and presentment New account opening Consumer wire transfers Investment/Brokerage services Loan application and approval Account aggregation

Wholesale Services Account management Cash management Small business loan applications, approvals, or advances Commercial wire transfers Business-to- business payments Employee benefits/pension administration

Account aggregation A service that gathers information from many websites presents that information to the customer in a consolidated format and, in some cases, may allow the customer to initiate activity on the aggregated accounts. Aggregation services typically involve three different entities: (1) The aggregator that offers the aggregation service and maintains information on the customer's relationships/accounts with other on- line providers. (2) The aggregation target or website/entity from which the information is gathered or extracted by means of direct data feeds or screen scraping. (3) The aggregation customer who subscribes to aggregation services and provides customer IDs and passwords for the account relationships to be aggregated.

Account management Activities such as balance inquiry, statement balancing, transfers between the customer’s accounts at the same financial institution, maintenance of personal information, etc.

Bill payment An e-banking application whereby customers direct the financial institution to transfer funds to the account of another person or business. Payment is typically made by ACH credit or by the institution (or bill payment service) sending a paper check on the customer's behalf.

Bill presentment An e-banking service whereby a business submits an electronic bill or invoice directly to the customer's financial institution. The customer can view the bill/invoice on-line and, if desired, pay the bill through an electronic payment.

Intrusion Detection System (IDS) Software/hardware that detects and logs inappropriate, incorrect, or anomalous activity. IDS are typically characterized based on the source of the data they monitor: host or network. A host-based IDS uses system log files and other electronic audit data to identify suspicious activity. A network-based IDS uses a sensor to monitor packets on the network to which it is attached.

Legacy systems A term commonly used to refer to existing computers systems and applications with which new systems or applications must exchange information.

1. PC banking is a form of online banking that enables customers to execute bank transactions from a PC via a modem. In most PC banking ventures, the bank offers the customer a proprietary financial software program that allows the customer to perform financial transactions from his or her home computer. The customer then dials into the bank with his or her modem, downloads data, and runs the programs that are resident on the customer’s computer. Currently, many banks offer PC banking systems that allow customers to obtain account balances and credit card statements, pay bills, and transfer funds between accounts.

2. Internet banking, sometimes called online banking, is an outgrowth of PC banking. Internet banking uses the Internet as the delivery channel by which to conduct banking activity Transferring funds, Paying bills, Viewing checking and savings account balances, Paying mortgages, and Purchasing financial instruments and certificates of deposit.

E-trading (E- Brokerage): Definitions: (1). E-trading is buying and selling of securities, stocks and funds electronically. (2). E-trading refers to screen based online trading of and investing in other transactions in equity stocks and other financial products like bonds, Forex etc Advantages: Before E-trading stock exchanges needs physical locations where buyers and seller meet and negotiate now by the introduction of e- trading physical location is no longer required for negotiation so we can electronically exchange information of interest and negotiate from the remote location. By e-trading stock exchanges are easy to manage and maintain It provides the real time stock prices throughout the world. Customers can react in real time to changes in the stock market Every person with internet account can buy and sell stock Stock market business will increase