1. Take Charge of your Finances
Online Banking
Take Charge of your Finances
Changes to slide 7, 13, 15

2. Online Banking
In the year 2006, 63 million Americans reported that they used online banking
43% of internet users in the United States bank online

3. Online Banking
Online banking – also known as internet banking, allows consumers to complete transactions with wireless technology. Wireless technology includes:
Personal Computers (PCs)
Personal Digital Assistants (PDAs)
Cellular phones

4. Online Banking
Consumers can access account information and statements

5. Online Banking
Consumers can transfer funds

6. Online Banking
Consumers can manage bills and apply for credit

7. Online Banking Decreased cost of paper and postage
Advantages
Disadvantages
Decreased cost of paper and postage
Storing all statements online instead of keeping a paper copy
Convenience
Paying bills online
Ability to access account anytime
No waiting for a monthly statement
Not as personal
Not able to access without technology
Decrease in safety features
Increase in risk for fraud

8. Online Bill Payment
Online bill payment – allows consumers to send money from one account to a vendor
Usually occurs automatically
Consumers need to check with the vendors regarding their policy of when the payment will be processed

9. Online Bill Payment
Examples of companies that use online bill payment include:
Retailer banks
Credit card companies
Insurance companies
Energy and utility companies
Health care
Transportation companies
Education expenses

10. Consumer works directly with the company in which the money is owed
Online Bill Payment
Occurs in two ways
Consumer works directly with the depository institution to pay the company that is owed
Consumer works directly with the company in which the money is owed

11. Online Bill Payment Important financial aspects include:
Checking with the vendor or company to understand their policy of when transactions are complete
Confirming there are enough funds in the account to cover the expense of the bill
Confirming bill will be paid, money will be taken out of the account, and the transaction will be completed
Their financial information is secure and it is safe to make online transactions

12. Determine Security
The Uniform Resource Locator (URL) ends in “s” which stands for secure
A closed lock to the right of the URL or in the bottom right hand corner of the web browser to indicate a secure site
Changed the picture so that the magnified picture of the lock and https were bigger

13. Insecure Practices Email accounts are not secure
Do not send important information such as:
Social security numbers
Bank account numbers
PIN numbers

14. Consumer Protection
The Federal Reserve Bank of Chicago suggests the following:
Passwords are a combination of letters and numbers
Avoid using passwords that would be easy for someone to guess such as birth dates, phone numbers, names, sequential numbers, etc.
Change passwords once a month
Keep all receipts and compare them to bank statements monthly
Log out of depository institution Web sites immediately after you finish working
Contact the depository institution directly with any questions or concerns
Added “Reserve” to “Federal Bank of Chicago” Added 2nd bullet point

15. Recurring Payment
Recurring payment – bills are set to be paid on the due date or a previous date set by the consumer
Payment will happen automatically electronically
Advantages of recurring payment include:
Save money on postage
Saves time for the consumer
Bills are paid on time

16. Regulation E
Regulation E – covers all electronic fund transfers including transfers occurring through an electronic terminal, computer, telephone, or magnetic tape
The transfer must be conducted with the purpose of authorizing a depository institution to debit or credit a consumer's account

17. Consumer Protection
Privacy Policy outlines how a consumer’s information will be used and protected
Opting out of a financial policy allows a consumer to request a depository institution to share only a limited amount of personal information

18. Conclusion Review Any questions? Define online banking
Review what transactions can be completed through online banking
Discuss advantages and disadvantages of online banking
Discuss online bill payment
What are secure and insecure online banking practices?
Any questions?