Академический Документы
Профессиональный Документы
Культура Документы
html
Chapter-1
Overview of the Study
INTRODUCTION
In a constantly changing world of today, where past is replaced by dynamic present and
the dynamic present is being replaced by more challenging future, the old ways of
doing things is no longer valid. Change is permanent and a reality. Those who are
not able to keep pace with the changes are destined to loose the race. Science and
technology is changing the way financial institutions perform their transactions.
Today’s banks are shaking by these technological changes. Life has never been so easy,
comfortable, and luxurious. Science and technology have brought our life to this stage.
But a new technology brings with it not only the potential for success but also a never-
ending series of questions regarding its design, its value to its users, ultimate use and
acceptability. For over a decade, Information technology has significantly affected the
banking industry Banks and other financial institutions have improved their functions as a
financial intermediary through adopting various information technologies. Generally
when the information technologies combine with functions of banks and financial
institutions, it is called electronic banking.
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 1
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
Since the launch of Internet the large planet has become a smaller one. It has rendered
enormous impacts on business sectors. Remarkable development in ICT (Information
and Communication Technology) has introduced a global revolution in banking sectors.
The global trend in business arena set some challenges that cannot be fulfilled with the
help of the traditional banking system.
The survey of current banking system in Bangladesh reveals the fact that it requires rapid
modification and adaptation to keep harmony with the world economy business. It
becomes more obvious by observing the increased number of customers in some modern
banks while others are losing them. In the context of Bangladesh, a country of more than
140 million people, it is to be realized that there is no other option for us than to join the
current trend. Otherwise it is almost impossible to bring any sort of fruitful achievement
for the country.
At present, people are very often scared of doing any banking function with most of the
bank of Bangladesh. For, they still follow the traditional paper-based system. It, then,
becomes cumbersome to perform even a simple financial service such as account
checking. Therefore, the existing banking system in our country is awkward, slow and
error-prone. It, in one hand, fails to meet the customers’ demand and, on the other hand, it
causes some significant losses both for the banking authority and traders. Electronic
banking, on the other hand, solves the above problems. Furthermore, it opens up some
other salient aspects such as increased foreign trade and foreign investment.
In order to cope with the changing technology Southeast Bank pursuits E-banking
services such as Online banking, SMS Banking, ATM Card – Debit Card, Credit Card,
Live Payment of foreign remittance services keeping in mind to hold up their position in
the global competitive world providing better services that customer expect being a man
in the twenty first century.
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 2
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 3
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
An immense development has been brought by the scientists in the field of information
technology. Electronic-banking is the innovative product of such advancement of
information technology. After this proliferation of technology what sorts of changes
found in the human civilization, how E-banking ripples the mind of the people at the
twenty first century, what the reacts towards the new technology of the society, how it
impacts the dimension of operations of the financial institutions and ability to provide
security about the customers confidentiality are the immanent driving forces behind me to
opt this topic and make a analysis.
1.7. METHODOLOGY
Research goals is to make a feasible study at problems and issues, scrutinize investigate
interconnections of multifarious variables that remain surrounded us. Research produces
bodies of knowledge; contribute towards the development of literature of the professions
and academic disciplines. As a formal investigative process, research takes place at
different level of scientific sophistication or kinds of epistemology .So, research in
various branches of academic disciplines operate its study through its own different ways.
Research in Business Studies focuses on describing, understanding and interpreting
business phenomena and processes and how it affects the business entities and the
society. This study is based on both primary and secondary data.
PRIMARY DATA
A structured questionnaire has been used to get data on the demography and the behavior
of 50 personal banking consumers of the E-banks (Online-banks). The respondents were
chosen randomly while they were actively involved in banking transaction.
A structured questionnaire has also been used to get data on the demography and the
behavior of 50 personal of Southeast Bank consumers of the E-services of this bank.
Bank personnel were interviewed to collect data on the E-banking services offered by the
bank.
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 4
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
SECONDARY DATA
Bank’s websites had been the sources of getting information on the services offered by
those banks. Apart from them, for literature review different scholar’s journals, books and
internet had rigorously been used.
Internal Sources
DATA ANALYSIS
No statistical tools are used. Only qualitative analysis is duly performed. For social-cost
benefit analysis simple mathematical calculations are done to cast the idea to the readers.
1. A country like Bangladesh is not so developed in the IT Sector. So I can not give a
clear notion of E-Banking of the country.
2. This is not fully E-banking because all transactions must be done by bank and
customer cannot make any transactions by his home PC.
3. Server utilization is not shown here under different loads.
4. Response time is not measured under different loads.
5. Complete information about how E-banking thrusts the bottom line of the income
statement is not available.
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 5
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
Chapter-2
Literature review
With the extensive technology innovation and telecommunication, we have seen new
financial distribution channels increasing rapidly both in the numbers and form, from
ATMs, telephone banking, PC banking to internet banking. (Earring Wood and Story,
1996). Developing alternative distribution channels is not only important in terms of
reducing costs and improving competitiveness, but also in terms of financial institution’s
ability to retain the existing customer case.(Kimball and Gregor, 1995) as well as to
attract new customers. Sathye (1999) proposed a model for Internet Banking in Australia
is significantly influenced by variables of system insecurity, case of use awareness of
service and its benefits, reasonable price, availability of infrastructure and resistance to
change. The transformation from traditional brick-and-mortar banking to E-Banking has
been Automatic Teller Machine (ATM) and thus the retail banking industry witnessed
significant and extensive change. Formally, E-banking comprises various formats or
technologies, including telephone (both land line and cell phone banking, direct bill
payment (EFT), and PC or internet banking (Power, 2000). Weitzman, (2000), Lassar,
Manolits and Lassar, (2005), Ehou and Chou (2000) identified five basic services
associated with online banking: view account balances, and transaction histories, paying
bills, transferring funds between accounts, requesting credit card advance, and ordering
checks. Majority of banks of banks is planning to introduce ICT for integration of
banking service and new finance service, which will play a vital role in bringing
efficiency in financial sector (Raihan, 2001). The most commonly factors are ease of use,
transaction security, convenience and speediness (Wan, Luk and Chow, 2005).
Organization theorists and practioners have defined e-banking in various ways. A Survey
of Electronic Banking, Electronic Cash and Internet Gaming (2003), has defined
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 6
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
electronic banking as “an umbrella term for the process by which a customer may
perform banking transactions electronically without visiting a brick and mortar
institution”. The following terms all refer to one form or another of electronic banking:
personal banking,(pc) virtual banking, on line banking, home Banking, remote electronic
banking, and phone banking are the most frequently used designations, (Joris, Claessens,
Valentine Dem et.al,2001),on line electronic banking system give every body the
opportunity for easy access to their banking activities.
Sathye (1999) proposed a model for Internet Banking Adoption, which argued that the
Intention of Internet Banking in Australia is significantly influenced by variables of
system insecurity, case of use awareness of service and its benefits, reasonable price,
availability of infrastructure and resistance to charge.
The Willis Report (1997 in Sathye, 1999) Stated that the technology must be reasonably
priced relative to alternatives for customers. Otherwise the acceptance of the new
technology may not be viable from customer’s stand point. Customers today are
more conscious of the expenses associated with the banking as they are generally better
informed about alternative option. The total costs incurred in using Internet Banking must
be minimal or competitive (Joyawardhena and foley, 2000).
Howard and Moore (1982) reported that consumers must be aware of the new brand
before adoption. Therefore it is important factor that the boxes have to create awareness
on internet banking to the consumers. Adoption means acceptance and continued use of a
product, service and idea. Customers go through a process of knowledge, persuasion,
decision and confirmation before they adopt the product or services.
Offer the internet banking; the greater the awareness level among customers and therefore
the higher will be internet banking adoption. Besides awareness, the service provided by
the banks should be perceived to be innovative with high quality and user friendliness to
meet an individual’s expectation. Cooper (1997) reported that case of use of innovation
product or service as one of the three important characteristics for adoption from the
customer’s perspective. This is related to user friendliness and ease of navigation as well
as simple institutions to use the service.
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 7
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
E-banking is the waves of the future. It provides enormous benefits to consumers in terms
of case and cost of transactions, either through internet, telephone or other electronic
delivery channels (Nsouli and Schaechter, 2002)
The clearing house generally provides the settlement of funds between member banks for
the following services:
• Cheque clearing
• Crediting employees’ wages directly into their accounts (GIRO)
• Processing of transfers and payments of bills
• Execution of other debit and credit transactions
The electronic linkages of banks with a clearing house will speed up local payment
processes. However, in order to provide international payments, banks need to have
a means to link up with international payment systems (Trade Finance Infrastructure
Development Handbook for Economies in Transition, P 97-110 )
According to BTRC the total number of Mobile Phone Active Subscribers has
reached 58.36 million at the end of May 2010.
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 8
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
According to BTRC the total number of PSTN Phone Subscribers has reached 1028.19
thousand at the end of May 2010.
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 9
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
A survey of electronic cash, electronic banking and internet gaming (2002) reported that
the term electronic cash, e-cash or e-money refer to electronic payment schemes that
enable consumer to store and redeem financial value. They operate via stored electronic
units of value. Paid for in advance by conventional money and representing equivalent
units in real currency, these funds can be transferred between vendors and individuals
using compatible electronic system, in some cases consumers report to banks or other
financial intimidators. E-cash (e-money) comes in two forms: smart card e-cash and
computer e-cash
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 10
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
Chapter-3
Electronic-Banking in Bangladesh
According to Lou Gerstner, IBM’s CEO: “E-business is all about cycle time, speed,
globalization, enhanced productivity, reaching new customers, sharing knowledge across
institutions for competitive advantage. ”
3.3 E-Money
E-money includes electronic debit and credit system, smart card. The smart card has been
defined many ways, but is generally defined as “portable data storage device with
intelligence (chip memory) and provision for identity and security.” In their simplest
forms, these cards are small microcomputers—lacking only external power supply,
displays, and keyboards. One of the most widely tested stored value cards offered by
Mondex, has an electric wallet, available as an optional accessory, with both of these
peripheral devices. The microprocessor chip in a stored –value card is specialized and
custom-designed, generally with specific patented control and production circuits.
Certain data, primarily related to the security of the card, can be entered only at the time
of manufacture. In addition to a microprocessor each card generally has several kilobytes
of permanent memory, both rewritable and non-rewriteable.
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 11
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
Although there has been significant effort made to eliminate paper-based payment
transactions, the basic way of handling payments by consumers has not changed. Stored
value cards may help to make the transition from paper-based payments to electronically
based payments more likely as these cards incorporate familiar aspects of using money in
a way that could prove to be both convenient and acceptable to the public.
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 12
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
As money technology has evolved, methods of payment have also changed, but cash still
often remains a preferred method of payment by many people. Over the past few decades
various media and industry experts have predicted the demise of cash and the advent of
the “cashless” society. However, recent survey results showed that the preferred form of
payments by consumers and merchants was still cash. Table 1 presents the results of that
survey
Cash 54.2%
The survey, conducted by Ernst & Young, showed also that 58% of retailers had a
preference for cash transactions. The evidence from this survey is noteworthy, as it is
easy to see the vast market potential for a product such as the smart card that is designed
to be a replacement primarily for cash transactions.
The number of cash purchases far exceeded any other payment method, although their
value accounts for less than 20 percent of the value of total consumer transactions on a
monthly basis. Cash is used most often at food stores, for purchases at gasoline filling
stations, and for dining out. The reasons given for using cash where that 1) it is
convenient for small, inexpensive purchases, 2) force of habit, and 3) the recipient
preferred or only accepted cash.
Even assuming that stored-value cards capture only a small fraction of their targeted
markets, the potential of the market for stored-value cards has been estimated to be
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 13
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
roughly the size of the market for traveler’s checks -$20 billion transacted annually,
although most consumer transactions represent only a small share of the total
expenditures. (Low income families are an exception to this statement).
3.4 E-banking
In its very basic form, e-banking can mean the provision of information about a bank and
its services via a home page on the World Wide Web (WWW). More sophisticated e-
banking services provide customer access to accounts, the ability to move their money
between different accounts, and making payments or applying for loans via e-Channels.
The term e-banking will be used in this book to describe the latter type of provision of
services by an organization to its customers. Such customers may be either an individual
or another business.
A large number of organizations from within and outside the financial sector are currently
offering e-banking which include delivering services using Wireless Application Protocol
(WAP) phones and Interactive Television (iTV).
There have been significant developments in the e-financial services sector in the past
30 years. According to Devlin (1995), until the early 1970s functional demarcation was
predominant with many regulatory restrictions imposed. One main consequence of this
was limited competition both domestically and internationally. As a result there was
heavy reliance on traditional branch based delivery of financial services and little pressure
for change. This changed gradually with deregulation of the in dustry during 1980s and
1990s, whilst during this time, the increasingly important role of information and
communication technologies brought stiffer competition and pressure for a faster pace of
change.
The Internet is a relatively new channel for delivering banking services. Its early form
‘online banking services’, requiring a PC, modem and software provided by the financial
services vendors, were first introduced in the early 1980s. However, it failed to get
widespread acceptance and most initiatives of this kind were discontinued.
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 14
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
With the rapid growth of other types of electronic services since mid 1990s, banks
renewed their interest in electronic modes of delivery using the Internet. The bursting of
the Internet bubble in early 2001 caused speculation that the opportunities for Internet
services firms had vanished. The “dot.com” companies and Internet players struggled for
survival during that time but e-commerce recovered from that shock quickly and most of
its branches including e-banking have been steadily, and in some cases dramatically,
growing in most parts of the world. One survey conducted by the TechWeb News in 2005
(TechWeb News, 2005) found e-banking to be the fastest growing commercial activity on
the Internet. In its survey of Internet users, it found that 13 million Americans carry out
some banking activity online on a typical day, a 58 percent jump from late 2002.
The spread of online banking has coincided with the spread of high-speed broadband
connections and the increasing maturation of the Internet user population. Another factor
in e-banking growth is that banks have discovered the benefits of e-banking and have
become keener to offer it as an option to customers.
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 15
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
Banks are essentially intermediaries which create added value by storing, manipulating
and transferring purchasing power between different parties. To achieve this, banks rely
on ICT to perform most functions, from book keeping to information storage and from
enabling cash withdrawals to communicating with customers (see Table 3.1 for an
overview of ICT enabled changes). In developed countries at least, this high degree of
reliance on ICT means that banks spend a large chunk of their budget on acquiring as well
as maintaining these technologies. Internal as well as external pressures often result in
questions being asked about the return on ICT investments
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 16
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
A focus on ROI reveals that ICTs provide a very limited return unless accompanied by
changes in organizational structures and business processes. These changes also need to
be followed by a diversification of service offerings, with many banks introducing new
product lines such as credit cards, stock brokerage and investment management services.
Thus ICT has mostly enhanced productivity as well as increased the choice for customers
both in terms of variety of services available and the ways in which they are able to
conduct their financial activities
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 17
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 18
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
Credit Card
Credit Card can be called as an equivalent of a loan sanctioned by the bank to its
customers. Credit card facilitates and makes it possible to “Use First and Pay Later” the
specified amount of credit as per the agreed terms of sanction. Before issuing the card, the
bank would like to know and be sure the identification, age, level and source of income
and repaying capacity. This card facilitates the cardholder to purchase goods and services
from the merchant establishments and shops through the collaborating credit card
companies like VISA, MasterCard, Maestro, and Cirrus. Interest will be charged by the
bank on monthly basis for the credit provided through the card. And service charges also
will be collected from the cardholder for the transaction and processing.
Debit Card
A Debit Card provides for online electronic payment like Credit Card but from savings or
current accounts of the cardholder for purchases. This card is a deposit access product
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 19
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
where cardholder uses his own money in his bank account through the debit card on the
principle of “Pay First and Use Later”. Debit card can be used to make purchase at retail
shops and merchant establishments in the same way as the credit card is used. But in
order to use the debit card, the cardholder must have sufficient balance in his/her account.
Debit card contains the symbol or hologram of collaborating company such as VISA,
MasterCard, Maestro and Cirrus etc.
ATM Card
As mentioned earlier, ATM Card can be used to withdraw money, deposit money,
balance enquires, deposit bills in the account. The cardholder must maintain a savings
bank account or current account with the bank. On issuance of card, the cardholder is
intimated a four digit secret Personal Identification Number (PIN). The cardholder is
always required to maintain safely the PIN to prevent fraudulent activity.
Smart Card
The smart card is an amazing piece of technology. It is the size of a regular ATM card but
is capable of storing over a 1000 times more data. The data can be encrypted and hence
the card is completely temper-proof. The card can also be personalized to the holder by
printing personal and other details on the card face. Mart card is issued to the formers to
provide adequate and timely credit support for their cultivation needs including all
purchases. The formers can use this card wherever they needs. The loan amount
sanctioned to the former will be recorded in the card. The merchants can sell the goods to
the former based on the card and they can collect the amount from the local branch of the
issued bank or any other bank.
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 20
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
Internet Banking
Internet banking is a web-based service that enables a customer access his account by
logging in to the bank’s website with the help of a bank-issued identification and a
personal identification number. The concepts of e-banking and internet banking are
synonymous, though banking activities carried out through the internet just constitute a
part of the whole gamut of e-banking indeed.
Internet banking would free both bankers and customers of the need for proprietary
software to carry on with their online banking transactions. Customer behavior is
changing rapidly. Now the financial service is characterized by individuality,
independence of time and place and flexibility. These facts represent huge challenges for
the financial service providers. So the Internet is now considered to be a ‘strategic
weapon’ for them to satisfy the ever-changing customers’ demand and innovative
business needs Adequate legal framework and maximum security are the two essential
factors for Internet banking. The comprehensive security infrastructure includes layers of
security from the network to the browser, including sophisticated encryption that protects
customers’ from intrusion when they access the bank over the public network. Actually
mobile banking is a variation of Internet banking.
SMS Banking
SMS Banking allows you to do some banking enquiries on your mobile phone. SMS
Banking is developed to provide transactions related to client’s card account via SMS.
After having registered the service SMS-Banking, a (mobile Phone) subscriber should
send an SMS to 611(say) with a request for appropriate transaction. The above SMS must
contain (with space between commands):
• A type transaction
• Individual access code for working with “SMS-Banking”
• A sum to be paid (if payment transaction)
• Identifier of payment (debt)
• Identifier of data.
In reply the subscriber will receive a message reporting the result of the transaction made.
It is possible to use “SMS-Banking” abroad provided that international calls and roaming
are activated. SMS must be written in Latin letters. There is no subscription fee for the
service. The SMS-s to number 611 is charged in accordance with the company tariffs.
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 21
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
The mobile company may charge for SMS and Bank may charge for service. It is option
of Bank who provides this service. A type of request is: <transaction type> blank <access
code>blank <the amount of payment>blank<payment identifier> blank<data
identifier>the data of the request should not be put in brackets/ inverted commas.
Tele-banking
Tele-banking is a form of remote banking which is essentially the delivery of branch
financial services via telecommunication devices where the bank customer can perform
retail transactions by dialing a touch-tone telephone or mobile communication unit, which
is connected to an automated system of the bank by utilizing Automated Voice Response
(AVR) technology. Tele-banking has been in Bangladesh since 1990s. The use of Tele-
banking is easy and confidential. All you need is a push button telephone, your account
number, and you’re Personal Identification Number (PIN), which you select on your first
call and can change at any time. Tele-banking will provide you the following services:
• Checking account balance
• Interest rates related information etc.
Online Banking
Banks are considering online banking as a powerful “value added” tool to attract and
retain new customers while helping to eliminate costly paper handling and teller
interactions in an increasingly competitive banking environment. Online banking
(Internet banking) is a term used for performing transactions, payments etc. over the
internet through a bank’s secure website. This is very useful especially outside banking
hours. In most cases a web browser such as Internet explorer or Netscape Navigator is
utilized and any normal internet connection is suitable. No special software or hardware is
usually needed.
Virtual Banks
Virtual banks are banks without bricks; from the customer perspective, they exist entirely
on the Internet, where they offer the same range of services and adhere to same rules and
regulations of central banks.
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 22
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
• The routine banking transaction was becoming both costly and time consuming. The
banks resorted to computerization to cut cost and time overheads in handling routine
transactions
• The introduction of automated teller machine (ATM) impart flexibility to bank
customers and gave further boost to virtual banking
• The introduction of credit cards and debit cards helps both the consumers and retailers
to be free from cash handling
Call Center
Call center is a streamlined customer interface and offers a range of banking services
through its call center agents. Customers are now getting improved services at a reduced
cost in an exciting manner. Available services at call center are:
Product Information:
Deposit accounts, Personal loan, Savings and current accounts, Debit card, Rates and
tariff Inquiry, exchange rates, lending rates, deposit rates, tariff etc.
E-Payments
Payment is generally understood as a transfer of fund from the one person (payer) to other
person (Payee). In E-payments, the funds are transferred through electronic mode. The
following are some of the E-payment system.
Banknet:
Banknet is a communication backbone connecting various centres of a country to
facilitate the transfer of inter-bank or inter-branch messages. Most of the centres of a
country are being brought on the network. The main objective of the Banknet is to
speedup the process of transfer of funds from one bank to another bank and one branch to
another branch.
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 23
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
SWIFT:
The society for System for Worldwide Inter-bank Financial Telecommunication (SWIFT)
provides reliable, secured and expeditious telecommunication facilities for exchange of
financial messages all over the world. It operates 24 hours on all days. The banks have to
become the member of International Financial Messages Communication Network. The
banks can do foreign exchange business safely and secured mode. We can say, the foreign
exchange business which the banks are conducting today would not have been possible
without SWIFT. Most of the central banks world-wide use the message standard provided
by SWIFT for the purpose of automatic clearing house activities.
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 24
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
Capacity/Scalability Problems
It is difficult to predict the usage of e-banking on an hourly or daily basis. These
‘scalability problems’ can give rise to a slowing down of the website, or even a website
crash (temporary unavailability). This can cause many reputation problems and financial
damage. Some of the ways of addressing this problem according to Seargeant (2000) are:
• Undertake market research to predict demand,
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 25
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
A number of other technical solutions are also available to address this problem but
owing to the high cost associated with them, some banks do not implement them.
Availability and Systems Integration
One of the basic requirements of e-banking services is their 24-hour availability. This
often requires e-banking applications’ integration with legacy systems, which were
designed to provide services during only specified periods, often with suspension of
services at other times for various reasons such as data backups and end-of-day
processing (Mohamed & Al-Jaroodi, 2003). Usual legacy systems are accounting,
banking, payroll, customer information, product management (such as current accounts or
savings accounts), and inventory systems. The new business applications are often not
built from scratch and they normally rely on the functionality of the existing legacy
applications.
Incompatibility between e-banking applications and legacy systems means that most
banks require middleware to integrate these systems, which can be expensive and may
bring its own set of problems. Systems integration has been and is still, to some extent, a
key barrier in e-banking. As pointed out in (Shah et al, 2007; Shah & Siddiqui, 2006),
shortcomings in technological infrastructure are often the biggest hurdle in the
implementation of e-business channels and their integration with other parts of a business.
This type of integration is essential for the success of e-banking, as an electronic request
for a typical financial transaction passes through a number of different systems before an
action is complete.
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 26
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
of graphics or other similar factors can also deter customers from coming back to that
website. Web usage barriers can also be attributed to vision, cognition, and physical
impairments associated with the normal aging process.
Vision changes include a decline in visual acuity resulting in inability to see objects on a
screen clearly, decreased capacity to focus at close range, or increased sensitivity to glare
from light reflecting or shining into the eye. These physiological changes, and many
others, impact the users ability to see Web objects and read online content (Becker,
2005). These factors need to be taken into account when designing a website as aging
population in most industrialized counties means that this segment is increasing in size.
These are the people who might need the online services most due to mobility issues.
Several software tools, including Dottie and Usability Enforcer, are available for senior-
friendly web sites.
Poor website design can also result in decreased trust in using online financial services as
look and feel often creates a lasting impression. This issue is further covered in greater
detail below in the section on trust issues.
Information Management
Good information management enables organizations to become more effective in their
operations as it provides the information employees need to analyze and conceptualize
information, thereby adding to the firm’s store of knowledge and making their jobs more
meaningful and efficient. This gives employees an opportunity to add value to the
organization’s products and services (Blount et al. 2005). In online services operations,
good information can be a vital difference between success and failure. However
managing information has been a problem for organizations across many industries.
.
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 27
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
Outsourcing Problems
Development or implementation of e-banking systems and other technical tasks such as
upgrading and integrating existing legacy systems are very complex. They require very
high levels of technical and project management competence to carry out without outside
help. Even the best companies need to recognize the limitations of their expertise and
when to outsource certain e-Commerce functions (Hirsh, 2002).
Security
Security related issues are a major source of concern for everyone both inside and outside
the banking industry. E-banking increases security risks, potentially exposing
traditionally isolated systems to the open and risky world of Internet. According to
McDougall (2007) security problems can mainly be categorized as; hacking with criminal
intent (e.g. fraud), hacking by ‘casual hackers’ (e.g. defacement of web sites or ‘denial of
service’ - causing web sites to slow or crash), and flaws in systems providing
opportunities for security breaches (e.g. a users is able to transact on other users’
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 28
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
accounts). These threats have potentially serious financial, legal and reputational risks
associated with them. Luckily actual financial losses from these breaches have been very
low in comparison to (say) credit card frauds. Financial regulators also demand a very
high standard of security from banks.
Information is a valuable asset and to fully utilize it needs wide availability at least within
an organization. However security requirements might hinder wider information sharing.
In an e-banking environment, security threats largely fall into the following categories:
• Login detail disclosure: This is most basic threat to the financial system. Using a
number of means, criminals acquire login details, such as a customer number, pin, and
use it to access the account and steal money from it.
• Computer spy viruses: These are computer programs which are circulated through
email or other means. Once a customer opens a malicious email a program is
automatically installed in his/her computer.
• Dummy sites: Here customers are lured to the dummy or look alike website. These
website look very similar to a bank’s website, and when login details are entered, these
are recorded and used for criminal activities.
• A strategic approach to security, building best practice security initiatives into systems
and networks as they are developed;
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 29
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
• Trust and trustees: The two parties, trustier and trustee, are vital for establishing a
relationship. In an online environment, a website, or rather the trader behind it, is a trustee
and a consumer is a thruster.
• Vulnerability: Offline traders usually have a physical presence which reduces the sense
of vulnerability but the anonymity associated with the online world leaves consumers
feeling more vulnerable. This is not just about vulnerability to fraud but also loss of
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 30
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
privacy, because every move made by a consumer can be recorded and analyzed to assess
their behavior.
• Produced actions: A consumer action may include just visiting a website for
information or purchasing a product, often providing credit/debit card as well as other
personal information such as home address. Both of these action benefit traders in terms
of a potential sale or an actual sale. To provoke these actions, a trader must do a number
of things – discussed below – to create trust in consumers’ mind.
• Subjective matter: Trust is a subjective matter. Some people will trust easily whereas
others will not trust no matter what. The majority of consumers, however fall, somewhere
in between, and can be persuaded to trust even a virtual trader. Basically, trust is a
psychological state of mind when the person is willing to accept the risks involved. When
the perception of benefits out weigh the risks in the relationship, the person enters into a
trusting relationship (Carr, 2007).
Adoption/Acceptance Issues
From an organizational point of view, failing to successfully adopt e-business initiatives
originate from a combination of unclear business vision for e-business and lack of
technological expertise amongst other factors. Other factors include: uncertainty of
financial benefits, limited size of target market, lack of time/resources to start new
projects, and high costs of computing technology, organizational issues like top
management short-sightedness and longstanding internal barriers.
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 31
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
Ethical Issues
Consideration of the ethics of e-banking have mainly focused on areas relating to the
use/abuse of information collected through analyzing online customer behavior.
In this context the main issues may include security/privacy of information about
individuals, accuracy of information, ownership of information and intellectual property,
accessibility of information held and what uses of this information are ethically
acceptable. These relate to: freedom of choice; transparency; facilitating fraud
(ethical/illegal activities of others).
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 32
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
A) Does any kind of offence knowing, it will hamper the resource, erase or change any
computer system which will loss public assets.
B) Access into any computer, server, network system without authorization.
Unauthorized access into any computer system knowing that it is restricted by controller
of government should be treated as unauthorized access.
Penalty: Maximum 10 year, 1, 00,000 taka or both of this.
Damage any file, resource, document, data, program, network system should be treated as
a crime.
Penalty: Maximum 10 year, 1, 00,000 taka or both of this.
If any body does any hamper to any source code, hide code and desolate of any computer,
computer program, computer system and computer network or does by another body will
be treated as cracking offence/crime.
Penalty: Maximum 3 year, 3, 00,000 taka or both of this.
According to penal code of Bangladesh:
Sec 03: Punishment of offences committed beyond, but which by law may be treated
within, Bangladesh.
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 33
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
Chapter-4
E- Banking Infrastructure & its Development in Bangladesh
4.1 Introduction
The Internet has provided a new and inexpensive channel for banks to reach out to their
customers. It allows customers to access banks’ facilities round the clock and 7 days a
week. It also allows customers to access these facilities from remote sites/home etc.
However, all these capabilities come with a price. The highly unregulated Internet
provides a less than secure environment for the banks to interface. The diversity in
computer, communication and software technologies used by the banks vastly increases
the challenges facing the online bankers. In this chapter, an effort has been made to give
an overview of the technologies commonly used in e-banking infrastructure. An attempt
has been made to describe concepts, techniques and technologies related to privacy and
security including the physical security. Security is one of the key issues in infrastructure
development.
Infrastructure is the basic physical and organizational structures needed for the
operation of a society or enterprise, or the services and facilities necessary for an
economy to function. The term typically refers to the technical structures that support a
society, such as roads, water supply, sewers, power grids, telecommunications, and so
forth. Viewed functionally, infrastructure facilitates the production of goods and services;
for example, roads enable the transport of raw materials to a factory, and also for the
distribution of finished products to markets
• Building Infrastructure
• Systems Infrastructure
• Personnel Infrastructure
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 34
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
Local area network (LAN) connects many servers and workstations within a small
geographical area, such as a floor or a building. Some of the common LAN technologies
are 10 MB Ethernet, 100 MB Ethernet, 1GB Ethernet, Fiber Distributed
Data Interface (FDDI) and Asynchronous Transfer Mode (ATM). The data transfer rates
here are very high. They commonly use broadcast mode of data transfer. The Wide Area
Network (WAN), on the other hand, is designed to carry data over great distances and are
generally point-to-point. Connectivity in WAN set-up is provided by using dial-up
modems on the Public Switched Telephone Network (PSTN) or leased lines, VSAT
networks, an Integrated Services Digital Network (ISDN) or T1 lines, Frame Relay/X.25
(Permanent Virtual Circuits), Synchronous Optical Network (SONET), or by using
Virtual Private Networks (VPN) which are software-defined dedicated and customized
services used to carry traffic over the Internet. The different topologies, technologies and
data communication protocols have different implications
on safety and security of services.
Protocols:
The data transmission protocol suite used for the Internet is known as the
Transmission Control Protocol/Internet Protocol (TCP/IP). The Internet is primarily a
network of networks. The networks in a particular geographical area are connected into a
large regional network. The regional networks are connected via a high speed “back
bone”. The data sent from one region to another is first transmitted to a Network Access
Point (NAP) and are then routed over the backbone. Each computer connected to the
Internet is given a unique IP address (such as 142.16.111.84) and a hierarchical domain
name (such as cse.iitb.ernet.in).The Internet can be accessed using various application-
level protocols such as FTP (File Transfer Protocol), Telnet, (Remote Terminal Control
Protocol), Simple Mail Transport Protocol (SMTP), Hypertext Transfer Protocol (HTTP).
These protocols run on top of TCP/IP. The most innovative part of the Internet is the
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 35
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
World Wide Web (WWW). The web uses hyperlinks, which allow users to move from
any place on the web to any other place.
With the popularity of web, organizations find it beneficial to provide access to their
services through the Internet to its employees and the public. In a typical situation, a
component of the application runs (as an ‘applet’) within the browser on user’s
workstation. The applet connects to the application (directly using TCP/IP or through web
server using HTTP protocols) on the organization’s application and database servers.
These servers may be on different computer systems. The web-based applications provide
flexible access from anywhere using the familiar browsers that support graphics and
multimedia. The solutions are also scalable and easy to extend. Fig 4.1 below shows
some of the components and technologies/products commonly
used in the design of web-based applications.
Banking Products:
E-Banking applications run on diverse platforms, operating systems and use different
architectures. The product may support centralized (bankwide) operations or branch level
automation. It may have a distributed, client server or three tier architecture based on a
file system or a DBMS package. Moreover, the product may run on computer systems of
various types ranging from PCs, open (Unix based) systems, to proprietary main frames.
These products allow different levels of access to the customers and different range of
facilities. The products accessible through Internet can be classified into three types based
on the levels of access granted:
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 36
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
Application architecture
A computer-based application may be built as a monolithic software, or may be structured
to run on a client–server environment, or even have three or multi-tiered architecture. A
computer application typically separates its 3 main tasks: interactions with the user,
processing of transactions as per the business rules, and the storage of business data. The
three tasks can be viewed as three layers, which may run on the same system (possibly a
large, proprietary computer system), or may be separated on to multiple computers
(across the Internet), leading to three-tier or multi-tier architecture.
These layers can be briefly described as follows:
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 37
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
few important functions of the administrator and how they relate to or impinge on system
security are discussed below:
a. Installation of software:
A software (whether system or application) needs to be carefully installed as per the
developer’s instructions. The software system may contain bugs and security holes, which
over a period are fixed through appropriate patches. It is necessary to know the latest and
correct configuration of all software packages.
Hackers and intruders are often aware of these bugs and may exploit known weaknesses
in the software; hence, care should be taken to install only the latest versions of software
with the latest patches. Further, improper installation may lead to degradation of services.
Installation of pirated software is not only illegal and unethical, but may also contain
trojans and viruses, which may compromise system security.
b. Access controls and user maintenance:
An administrator has to create user accounts on different computer systems, and give
various access permissions to the users. Setting access controls to files, objects and
devices reduces intentional and unintentional security breaches. A bank’s system policy
should specify access privileges and controls for the information stored on the computers.
The administrators create needed user groups and assign users to the appropriate groups.
The execution privilege of most system–related utilities should be limited to system
administrators so that users may be prevented from making system level changes. The
write / modify access permissions for all executables and binary files should be disabled.
c. Backup, recovery & business continuity:
Back-up of data, documentation and software is an important function of the
administrators. Both data and software should be backed up periodically. The frequency
of back up should depend on the recovery needs of the application. Online / real time
systems require frequent backups within a day. The back-up may be incremental or
complete. Automating the back up procedures is preferred to obviate operator errors and
missed back-ups. Recovery and business continuity measures, based on criticality of the
systems, should be in place and a documented plan with the organization and assignment
of responsibilities of the key decision making personnel should exist. An off-site back up
is necessary for recovery from major failures / disasters to ensure business continuity.
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 38
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 39
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
unless otherwise protected, all data transfer can be monitored or read by others. Although
it is difficult to monitor a transmission at random, because of numerous paths available,
special programs such as “Sniffers”, set up at an opportune location like Web server, can
collect vital information. This may include credit card number, deposits, loans or
password etc.
5. Data Integrity: It ensures that information cannot be modified in unexpected way.
Loss of data integrity could result from human error, intentional tampering, or even
catastrophic events. Failure to protect the correctness of data may render data useless, or
worse, dangerous. Efforts must be made to ensure the accuracy and soundness of data at
all times. Access control, encryption and digital signatures are the methods to ensure data
integrity.
6. Non-Repudiation: Non-Repudiation involves creating proof of the origin or delivery
of data to protect the sender against false denial by the recipient that data has been
received or to protect the recipient against false denial by the sender that the data has been
sent. To ensure that a transaction is enforceable, steps must be taken to prohibit parties
from disputing the validity of, or refusing to acknowledge, legitimate communication or
transaction.
7. Security Audit Trail: A security audit refers to an independent review and examination
of system's records and activities, in order to test for adequacy of system controls. It
ensures compliance with established policy and operational procedures, to detect breaches
in security, and to recommend any indicated changes in the control, policy and
procedures. Audit Trail refers to data generated by the system, which facilitates a security
audit at a future date.
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 40
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
5. The intruder does not gain access, but instead implements malicious procedures
that cause the network to fail, reboot, and hang.
Modern security techniques have made cracking very difficult but not impossible.
Further more, if the system is not configured properly or the updated patches are not
installed then hackers may crack the system using security hole. A wide range of
information regarding security hole and their fixes is freely available on the Internet.
Common cracking attacks include:
1. E-mail bomb and List linking
2. Denial-of-Service
3. Sniffer attack
4. Utilizing security hole in the system software
Authentication Techniques:
As mentioned earlier, authentication is a process to verify the claimed identity. There are
various techniques available for authentication. Password is the most extensively used
method. Most of the financial institutions use passwords along with PIN (Personal
Identification Number) for authentication. Technologies such as tokens, smart cards and
biometrics can be used to strengthen the security structure by requiring the user to possess
something physical.
1. Token technology relies on a separate physical device, which is retained by an
individual, to verify the user’s identity. The token resembles a small hand-held card or
calculator and is used to generate passwords. The device is usually synchronized with
security software in the host computer such as an internal clock or an identical time based
mathematical algorithm. Tokens are well suited for one-time password generation and
access control. A separate PIN is typically required to activate the token.
2. Smart cards resemble credit cards or other traditional magnetic stripe cards, but
contain an embedded computer chip. The chip includes a processor, operating system,
and both Read Only Memory (ROM) and Random Access Memory (RAM). They can be
used to generate one-time passwords when prompted by a host computer, or to carry
cryptographic keys. A smart card reader is required for their use.
3. Biometrics involves identification and verification of an individual based on
some physical characteristic, such as fingerprint analysis, hand geometry, or retina
scanning. This technology is advancing rapidly, and offers an alternative means to
authenticate a user.
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 41
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
Firewalls:
The connection between internal networks and the outside world must be watched and
monitored carefully by a gatekeeper of sorts. Firewalls do this job. Otherwise, there is a
risk of exposing the internal network and systems, often leaving them vulnerable and
compromising the integrity and privacy of data. Firewalls are a component or set of
components that restrict access between a protected network and the outside world (i.e.,
the Internet). Broadly, there are three types of firewalls i.e. Packet filtering firewalls,
Proxy servers and stateful inspection firewall.
• Packet filtering routers:
Packet filtering routers are the simplest form of firewalls. They are connected between the
host computer of an Internal network and the Internet gateway as shown in Fig.6.
2. The bastion host directs message accepted by the router to the appropriate application
servers in the protected network. Their function is to route data of a network and to allow
only certain types of data into the network by checking the type of data and its source and
destination address. If the router determines that the data is sourced from an Internet
address which is not on its acceptable or trusted sources list, the connection would be
simply refused. Also, the filtering rules can be difficult to configure, and a poorly
configured firewall could result in security loopholes by unintentionally allowing access
to an internal network.
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 42
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
network wants to access some application running on a computer inside the internal
network, then it would actually communicate with the proxy server, and proxy server in
turn will pass the request to the internal computer and get the response which will be
given to the recipient (outside user). That is, there is no direct connection between the
internal network and Internet. This approach allows a high level of control and in-depth
monitoring using logging and auditing tools.
a. Stateful Inspection firewall:
This type of firewalls thoroughly inspects all packets of information at the network level
as in the case of proxy servers. Specifications of each packet of data, such as the user and
the transportation method, the application used are all queried and verified in the
inspection process. The information collected is maintained so that all future are
inspected and compared to past transmission. If both the “state” of the transmission and
the “context” in which it is used deviate from normal patterns, the connection would be
refused. These types of firewalls are very powerful but performance would also decline
due to the intensive inspection and verification performed.
Cryptography:
The process of disguising a message in such a way as to hide its substance is called
encryption. An encrypted message is called cipher text. The process of turning a cipher
text back into plain text is called decryption. Cryptography is the art and science of
keeping messages secure. It uses a ‘key’ for encrypting or decrypting a message. Both the
method of encryption and the size of key are important to ensure confidentiality of a
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 43
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
message. There are two types of encryption: Symmetric key and Asymmetric key
encryption. In the symmetric key cryptography scheme, the same key is used to encrypt
and decrypt the message. Common symmetric algorithms include One-time pad
encryption, Data Encryption Standard (DES), Triple DES, LOKI, Twofish, Blowfish,
International Data Encryption Algorithm (IDEA). DES and Triple DES are the commonly
used techniques. Asymmetric key cryptography scheme is also known as Public key
crypto-system. Here two keys are used. One key is kept secret and therefore it is referred
as “private key”. The other key is made widely available to anyone who wants it, and is
referred as “Public key”. The Public key and Private key are mathematically related so
that information encrypted using the public key can only be decrypted by the
corresponding private key and vice-versa.
• Diffie-Hellman: This is the first public key algorithm invented. It gets its security from
the difficulty of calculating discrete logarithms in a finite field. Diffie-Hellman method
can be used for distribution of keys to be used for symmetric encryption.
• RSA: Named after its three inventors, Ron Rivest, Adi Shamir and Leonard Adleman,
who first introduced the algorithm in 1978, RSA gets its security from the difficulty of
factoring large numbers. The public and private keys are function of a pair of large (100
or 200 digits or even larger) prime numbers. The pair is used for asymmetric encryption.
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 44
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 45
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
/PIN/digital certificate to authenticate clients. Once the clients and server have
authenticated each other, they establish a session key for encryption of messages. The
diagram above shows flow of messages in SSL. The flow of authentication messages in
SSL is shown in Fig.6.4.
Physical Security:
Physical security is a vital part of any security plan and is fundamental to all security
efforts--without it, information security, software security, user access security, and
network security are considerably more difficult, if not impossible, to initiate. Physical
security is achieved predominantly by controlled and restricted physical access to the
systems resources. Access control broadly provides the ability to grant selective access to
certain people at certain times and deny access to all others at all times. Physical security
involves the protection of building sites and equipment (and all information and software
contained therein) from theft, vandalism, natural disaster, manmade catastrophes and
accidental damage (e.g., from electrical surges, extreme temperatures and spilled coffee).
Security Policy:
The information security policy is the systemization of approaches and policies related to
the formulation of information security measures to be employed within the organization
to assure security of information and information systems owned by it.
The security policy should address the following items:
1. Basic approach to information security measures.
2. The information and information systems that must be protected, and the reasons for
such protection.
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 46
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
The top management of the bank must express a commitment to security by manifestly
approving and supporting formal security awareness and training. This may require
special management level training. Security awareness will teach people not to disclose
sensitive information such as password file names. Security guidelines, policies and
procedures affect the entire organization and as such, should have the support and
suggestions of end users, executive management, security administration, IS personnel
and legal counsel.
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 47
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
with the international markets and seeks growth through exports, improved
communication and computer skills among various segments of the society are
imperative.
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 48
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
on networking and operating systems allows for the advantages of the “flattening” of the
world as discussed in the Thomas Friedman article. The Global Information Technology
Report 2004- 2005 provides evidence of the dire state in which Bangladesh currently
finds itself in this regard.
Firewalls: At the minimum, banks should use the proxy server type of firewall so that
there is no direct connection between the Internet and the bank’s system. It facilitates a
high level of control and in-depth monitoring using logging and auditing tools.
Isolation of Dial Up Services: All the systems supporting dial up services through
modem on the same LAN as the application server should be isolated to prevent
intrusions into the network as this may bypass the proxy server.
Security Infrastructure: At present, PKI is the most favored technology for secure e-
banking services. However, it is not yet commonly available. While PKI infrastructure is
strongly recommended, during the transition period, until IDRBT or
Government puts in the PKI infrastructure, the following options are recommended
1. Usage of SSL, which ensures server authentication and the use of client side
certificates issued by the banks themselves using a Certificate Server.
2. The use of at least 128-bit SSL for securing browser to web server
communications and, in addition, encryption of sensitive data like passwords in transit
within the enterprise itself.
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 49
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
Penetration Testing: The information security officer and the information system auditor
should undertake periodic penetration tests of the system, which should include:
1. Attempting to guess passwords using password-cracking tools.
2. Search for back door traps in the programs.
3. Attempt to overload the system using DdoS (Distributed Denial of Service) & DoS
(Denial of Service) attacks.
4. Check if commonly known holes in the software, especially the browser and the email
software exist.
5. The penetration testing may also be carried out by engaging outside experts (often
called ‘Ethical Hackers’).
Physical Access Controls: Though generally overlooked, physical access controls should
be strictly enforced. The physical security should cover all the information systems and
sites where they are housed both against internal and external threats.
Back up & Recovery: The bank should have a proper infrastructure and schedules for
backing up data. The backed-up data should be periodically tested to ensure recovery
without loss of transactions in a time frame as given out in the bank’s security policy.
Business continuity should be ensured by having disaster recovery sites where backed up
data is stored. These facilities should also be tested periodically.
Monitoring against threats: The banks should acquire tools for monitoring systems and
the networks against intrusions and attacks. These tools should be used regularly to avoid
security breaches.
Education & Review: The banks should review their security infrastructure and security
policies regularly and optimize them in the light of their own experiences and changing
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 50
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
technologies. They should educate on a continuous basis their security personnel and also
the end-users.
Log of Messages: The banking applications run by the bank should have proper record
keeping facilities for legal purposes. It may be necessary to keep all received and sent
messages both in encrypted and decrypted form. (When stored in encrypted form, it
should be possible to decrypt the information for legal purpose by obtaining keys with
owners’ consent.)
Certified Products: The banks should use only those security solutions/products which
are properly certified for security and for record keeping by independent agencies (such
as IDRBT).
Approval for I-banking: All banks having operations in India and intending to offer
Internet banking services to public must obtain an approval for the same from RBI. The
application for approval should clearly cover the systems and products that the bank plans
to use as well as the security plans and infrastructure. RBI may call for various documents
pertaining to security, reliability, availability, auditability, recoverability, and other
important aspects of the services. RBI may provide model documents for Security Policy,
Security Architecture, and Operations Manual.
Standing Committee: RBI may set up a standing Committee to monitor security policy
issues and technologies, to review prescribed standards, and to make fresh
recommendations on a regular basis.
Well Trained Personnel
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 51
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
Chapter-5
E-Banking in Southeast Bank
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 52
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
5.1.2 Mission
High quality financial services with the help of the latest technology.
Fast and accurate customer service.
Balanced growth strategy.
Follow ethical standards in business.
Steady return on shareholders' equity.
Innovative banking at a competitive price.
Attract and retain quality human resource.
Commitment to Corporate Social Responsibility
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 53
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 54
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 55
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
In case of cash advance, the interest @ 2.50% per month will be charged and calculated
on daily basis from the date of transaction until cash advance is paid in full.
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 56
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 57
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
contribution is equally important, if not more, in the contribution they make to the
economy of the country. The foreign exchange they send home is the second largest
source of much needed foreign exchange for our economic development. In fact if we
adjust import costs against export of the garments sector that overtly brings more foreign
exchange to the national economy, remittance will figure as the single largest source of
foreign exchange for Bangladesh. Nationalized and private banks are the principal agents
for bringing remittance to the country.
Although Southeast Bank has entered into remittance late compared to the other private
banks, it has continuously strived to build its remittance business around quality service
by making it easy for remitters to remit money through a network of agreements with
reputed banks and remittance houses abroad and an extensive network in the country to
deliver the money to the beneficiaries at their door in the quickest possible time and
without hassles.
SEBL deliverer money to the beneficiaries without service charges & assures
confidentiality in transactions. Additional features of SEBL‘s one - stop remittance
delivery service are:
Global Partners
Western Union Money Transfer Services (www.westernunion.com)
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 58
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 59
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 60
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
I. The sender will receive money receipt with Money Transfer Control Number
(MTCN) from any of the Western Union agent location outside Bangladesh after
depositing money.
II. The sender will inform the money transfer detail (amount of money sent, sender's
name, receiver's name, destination country, and MTCN) to the receiver.
III. The receiver will receive the money from any of the 66 Branches of Southeast
Bank Ltd. by showing a valid Identification and filling a form.
Money transfers can be received from 9.00 A.M. to 3.00 PM on Sunday through
Thursday and from 9.00 A.M. to 12.00 PM on Saturday in 17 Authorized Dealer
branches.
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 61
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 62
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
• Stop Payment and Cheque Leaf Reactivation for Payment services will be
available during office hour only. Account Statement Request is limited for
previous 6 (six) months only.
• Reply SMS charges are monthly payable with 15% VAT. If account holder does
not pay due SMS charges for consecutive 3 (three) months, SMS service will be
discontinued.
Account Statement
206 25.00 3.00 -
Request by E - mail
Eligibility
We are issuing ATM card against SB, CD & STD Account
Fees & Charges
TK 500 for annual / renewal fee.
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 63
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
5.2.7 Export
Southeast Bank Limited offers a wide range of export services. Routing all export related
transactions through Southeast Bank Limited could eliminate many of exporting hassles.
With our expertise and experience, we can structure and customize solutions for specific
requirements.
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 64
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
• @0.25% flat or minimum Taka 1,000/- plus interest for the period the
bill remain outstanding.
• Advising Foreign Bank LCs to the local beneficiary @ Taka 1,000/- per instance
LC advising charge - Local LC ( BTB & Inland):
• Taka 750/- per instance for our Bank client.
• Taka 1,000/- per instance for other bank's clients
Transfer of LC:
• Transfer Charge - Taka 1,000/- per instance for our Bank's client.
• Commission for transfer of amendment - Taka 500/- per instance for our Bank's
clients.
• Adding confirmation charge @ 0.25% per quarter
• Foreign Bank's guarantee commission against discrepant bills At actual
• Collecting Bank's charges from abroad At actual
Processing of documents under collection in local currency:
• Full waiver of handling charges.
• Postage / Swift / Mail / Telex / Courier charges to be realized at actual.
Mailing of Export Document:
• 1st mail at actual or minimum Taka 1,500/-
• 2nd mail at actual or minimum Taka 800/-
• Advising of guarantee to the beneficiary in original without any engagement on
our part @ Taka 500/- flat.
• Advising of Guarantee in original by adding our confirmation. As per agency
agreement or @ 0.50% per quarter or part thereof minimum Taka 1,000/-.
• Advising of guarantee in our own format or on the format supplied by the opening
bank with our full engagement - As per agency agreement or @ 0.50% per quarter
or part thereof minimum Taka 1,000/-.
• Issuing Bid Bond / Performance Bond favoring overseas beneficiary through
foreign correspondent at client�s request - As per agency agreement or @
0.25% per quarter or part thereof along with SWIFT / Mail charge.
• Charge for issuance of Export Performance Certificate @ Taka 200/- and
stationary charge Taka 50/-.
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 65
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
5.2.8 Import
Features and Benefits
Import Services:
Southeast Bank Limited offers comprehensive range of Import services. Southeast Bank
Limited is highly respected in the world of international finance and cross border
transactions. Through our expertise and experience, we can structure and customize
solutions suited to specific business requirements.
Import Letters of Credit:
We issue Import Letters of Credit on behalf of our customers. Our experts can advise in
drafting the LC terms and conditions so as to protect customers' interests.
Import Collection Bill Services:
Documentary Collections are a common and flexible method of payment for goods
purchased from suppliers in abroad. Rely on our expertise in efficient and prompt
handling of Import collection documents.
• Supply advance payments towards Imports.
• Shipping Guarantee & Bank Guarantee are also available.
• Post shipment finance such as LIM, LTR etc for your immediate liquidity.
• Back to Bank L/C facility against Export LC.
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 66
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 67
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 68
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 69
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
Tokyo &
24. JPY UBAF 10 282760 001 00 0
Osaka
Female 1 5 14 4 24 3.87
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 70
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
Among the respondents were surveyed, 43% male and 12% female use ATM card from
100% male and female respectively. The results of the survey are shown below according
to the gender category of the respondents:
Q-11 (%)
Male 43
Female 12
Gender basis
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 71
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 72
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
Same 11%
Worse 3%
Strength
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 73
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
Weakness
SEBL’s focus more now increasing the number of customers. But the authority
has no headache to increase the capacity of the server. So their system may collapse
due to overload any time.
Due to large number of customers they may face security problem
There is no ATM booth in the University campus as NBL has. But student may
be profitable customers in near future.
Few number of ATM booth located in the only urban area. There is no one
ATM booth in the rural area.
Opportunities
o Customer’s psychological impression to use debit and credit card will be positive
aspects of exploring online banking.
o Of late expansion of fiber optic cable in Chittagong intensifies this opportunity
much more.
o Tejari, a Dubai based online marketplace, is to open offices in Bangladesh to offer
e-commerce services to exporters and so banking application will be aloofted.
o Expansion of mobile network over the country creates scope for online business
applications. Some companies already provided mobile internet services in the
country.
Threats
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 74
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 75
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
Chapter-6
Data Analysis
The use of online banking in the national bank is zero. Only the service of linking A/Cs
online is present in Public Bank, but other services are absent in both the NCBs.
The scenario in PCB is better. Among 14 surveyed banks, four banks (like Premier Bank
Ltd, First Security Bank ltd, Dhaka Bank Ltd, Exim Bank Ltd) are only applying minor
activities of online banking services.
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 76
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
Linking A/Cs online and foreign exchange rate update-these two services are provided by
remaining 10 banks. Besides these, the task of branch transactions, fund transfer, bank
statement, paying utility bills and checking account balances can be done through online
in these banks.
There are a total of 49 scheduled public and private banks in the country. Here there are
four state owned commercial banks (Nationalized Commercial Banks-NCBs) have 3496
branches, five specialized banks (DFIs) have 1311 branches, 30 local private commercial
banks (Private Commercial Banks-PCBs) have branches of the scheduled banks in the
country. The banking system of our country, depending on computerization can be
classified into three categories: (i.)Completely computerized (ii.) Partially computerized
(iii) Not computerized. Standard Chartered Grindlays Bank Ltd., City Bank NA,
American Express Bank, HSBC etc are completely computerized banks in our country.
All privates and state owned banks are partially computerized and not computerized. The
overall picture of computerization in the banking sector of our country presented in the
following table (Raihan ).
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 77
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
The overall computer density in the banking sector is 1.64. For foreign commercial banks
(FCBs) the computer density is 45.34, where as for NCBs the ratio is only 0.41. The
specialized bank scenario is almost same as the NCBs, 0.43. On the other hand, private
commercial banks have comparatively higher ratio, 4.94. As a whole 81.81 percent bank
does not have any local area network (LAN), 30 percent have WAN (Wide Area
Network) but for some banks many branches are outside of WAN connectivity. At
present, all of the foreign banks of our country are using online banking system, they are
invested a lot for their automation banking services. For this reason, they are increasing
market share every year. They are the pioneer of implementing electronic banking
systems in Bangladesh, but now most of the private banks of our country are using
electronic banking systems.
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 78
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
10. Tele-banking 35 46 54
11. Point Of Sales (POS) Service ---- ------- -------
12. Remittance (Electronic Way) ------ ----- ------
13. Call Center ------ ------ -------
14. SWIFT Channel -------- ---- 30
15. Web Shopping On Internet ----- --- -----
Table-6.2.2 Electronic Banking Services in Bangladesh [% of Banks]
(---= service not significant Amount)
The above table shows the different electronic banking services are increasing day by day
in Bangladesh.
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 79
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
Business & service groups are the dominant users of online banking among the
professionals that belongs to 32.5% and 37.7%.We may expect that with in very near
future the using rate will be reached in a satisfactory level.
6.5 Estimated ICT Human Resource Demand over the Next Five Years
Table 6.5, below, gives a rough idea of the demand for skilled labor over the next few
years. These estimates are based on knowledge gained through activity in the sector over
the last four years as well as interviews with all three industry associations.
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 80
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
Expansion of mobile network over the country creates scope for online business
applications. Some companies already provided mobile internet services in the country.
Expansion of ISPS
The number of ISPS has grown to 195 with individual band with ranging from 34 KBPS
to 2 MBPS, offering broad band internet services through DSL/HDSL.
Regulatory Support
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 81
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
Certain regulations such as IPR bill, the evidence act have the capability of facilitating the
scope of online banking in Bangladesh.
Expansion ICT
A considerable number of manpower’s are available who have a potent ICT knowledge.
Some others clues are:
Customer’s psychological impression to use debit and credit card will be positive
aspects of exploring online banking.
Of late expansion of fiber optic cable in Chittagong intensifies this opportunity
much more.
Tejari, a Dubai based online marketplace, is to open offices in Bangladesh to offer
e-commerce services to exporters and so banking application will be lofted.
Citi’s global transaction services business announced a set of cross border
remittance services for the corporate and banking markets.
In order to expansion of e-banking, in august 2001, center for policy dialogue (CPD)
articulated several principles that could be the foundation for government policy in
Bangladesh, includes:
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 82
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
Central bank may form a "center for online banking technology and management" to
support the banks with latest technological development in the banking world and provide
expert support for ICT implementation.
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 83
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
• Government Initiatives
• Sound Banking Sector
• Information Infrastructure
• Telecommunications
• ICT Penetration in Financial Sector
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 84
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 85
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
• Operational risk
• Market risk
• Legal risk
Traditional banking risks such as credit risk, liquidity risk and market risk are also present
in e-banking sectors
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 86
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
Chapter-7
Cost-benefit analysis is mainly, but not exclusively, used to assess the value for money of
very large private and public sector projects. This is because such projects tend to include
costs and benefits that are less amenable to being expressed in financial or monetary
terms (e.g. environmental damage), as well as those that can be expressed in monetary
terms.
Cost-Benefit Analysis (CBA) estimates and totals up the equivalent money value of the
benefits and costs to the community of projects to establish whether they are worthwhile.
One of the problems of CBA is that the computation of many components of benefits and
costs is intuitively obvious but that there are others for which intuition fails to suggest
methods of measurement. Therefore some basic principles are needed as a guide.
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 87
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 88
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
days is absorbed to nil. Assuming yearly interest rate as 13% we can find out the net
profit calculated over this delay of 7 days.
Net profit = (7x13x25480) / (365x100) = 63.52 (amount in lac TK.)
Concluding Remarks:
If the above function is done with the traditional banking system society will incur a loss
amount to tk 63.52 (lac).But under the online banking system society will gain by
expediting the transaction. So from the social perspective the online banking project is
acceptable.
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 89
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
convenient to process an L/C operation. Therefore, bank now can lower its commission at
least at .25% instead of .5%. Foreign Courier Charge will be sharply reduced to TK.100/=
(including some electronic message transfer charge. Suppose other charges remain same).
Concluding Remarks:
I may conclude that online banking could able to provide optimum benefit to the
members of the society. As a whole society is benefited insinuately and the extra amount
that was charged under traditional banking system can be invested to the productive
sectors and benefits derive from that project to the society.
So, online banking project is viable for the society.
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 90
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
bank contacts Credit Information Bureau (CIB) at central bank .CIB checks all related
papers and other documents regarding the person and finally send a reply stating the
summery of his past transactions. Depending upon the report sent from CIB the bank
either accepts or rejects to sanction loan for the person/persons. Above process of
generating CIB report requires on an average of 20 days. This delay is due to the manual
procedure of verification. By contrast the proposed electronic banking system is capable
to do same job in an efficient way. The Central Bank can generate the CIB report within
seconds using its integrated database for the customers.
Mr X wants to take a car loan from TBL in Sylhet branch. After completing the
application form, TBL will send it to the CIB to discern the application that will take one
month due to the manual procedure of verification. The social cost of that community will
be like this:
Assumptions
-The people have to expend an hour and to pay tk25.
-If car moves the cost would be tk5 per person and take 15 minutes.
-Every day 100 people travel from Golapgonj to Sylhet
So the amount paid by 100 people is = (25 X 100X30) = tk75000
Time required = (100X1X30) = 300 hours
But the Central Bank can generate the CIB report within seconds using its integrated
database for the customers. If all things are positive it will take two days to provide the
loan by the TBL.
So the amount paid by 100 people is = 5 X 100X30 = 15000
Time required = 100X15X30 = 4500/60=75 hours
Social cost = (75000 – 15000) = tk50000
Time lost = (100-75) = 25 hours]
Concluding Remarks:
If online banking services are available the social benefit would be tk50000 and time
saved 25 hours. No doubt about the social benefit of the online banking.
Under the proposed configuration every bank is directly connected with the ports
authority (sea and air). Currently, disbursement of goods from ports requires much time
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 91
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
due to processing and clearing of required papers. The trader now sometimes gets the
papers from his bank and deposits them to the port authority. The unexpected delay will
be removed using a direct communication channel with the port authority.
Suppose, Lack of proper documents the fossil fuel has not been released by the ports
authority of Chittagong. And it will take 7 days to submit the necessary documents as no
online banking services are present in the country. Result is that the price of fossil fuel
will rise from tk 48 to tk 55 due to more demand over supply. So society suffers tk 7
more in per litter.
Concluding Remarks:
If online banking facility prevails in the country, the importer could submit their
documents properly and society could enjoy the fruits. So there is no debate regarding e-
banking from the society’s view point.
This is one of the important role that the proposed system will play currently the Central
Bank, the beginning of the day, declares major exchange rate. Each Head Office (HO)
collects that information from the Central Bank usually over the telephone. After some
interval the rate might change but due to the lack of online connectivity with the Central
Bank each HO gets the changed exchange rate information with some significant delay.
This delay might cause heavy loss for the bank or for the customer. Here lies the
necessity of assuring floating point exchange rate. The proposed system can very well
establish the requirement of the floating exchange rate using online message broadcast
from the central bank.
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 92
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
=$470588
Now assume that the importer will charge per kg at tk 36 after considering all costs.
But within mean time the exchange rate has been changed from tk 68 to tk 69.5 that was
not available to the office of Barisal due to lack of information system. Under the new
exchange rate importer will pay to exporter = 32000000 / 69.5 = $460432 and the rice per
kg would be priced to tk 40 by the importer adding all costs. So the common people
would have to pay more tk 4 (40-36) per kg now.
Concluding Remarks:
If E-banking services are available in Barisal, the fluctuating exchange rate will reach in
time. And the society is benefited by paying tk 4 less per kg.
So e-banking again proves itself healthful to the society.
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 93
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
Chapter-8
Findings & Recommendations
8.1 Findings
The findings of my study are-
In the context of Bangladesh, both educated and uneducated people are very much
unaware about the IT .This unconsciousness creates the other hindrances like
techno phobia, lack of security and privacy.
Most of the people of our country are reluctant to change the traditional
personalized procedures.
Sometimes people are aware and interested enough to replace the traditional
method with the IT, but do not have enough money and infrastructure support.
Internet network is not available over the whole country.
Though the online banking in Bangladesh is infancy stage, it is expanding rapidly.
In SEBL, there is no ATM booth in the University campus as 3% of the total users
are student.
If we observe the consumer behavior of online banking either Bangladesh
perspective or SEBL perspective, we see that female participants are very poor
and needless to say of rural and most of the urban housewives.
No initiatives have been taken to attract the female users.
SEBL has provided online banking services only the divisions, major city
corporations and port area.
Conspicuous aspects of SEBL e-banking consumers are highly educated who are
very much optimistic about change.
The server capacity is not the latest version.
8.2 RECOMMENDATIONS
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 94
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
8.3 CONCLUSION
E-banking means today, web based banking. Today banks are embracing web technology
to offer more services at a cost effective rate. Although in late Bangladeshi commercial
banks put forward themselves to gain that competitive advantage. If these
recommendations are followed perfectly by the concerned, it is not so far that Bangladesh
will embrace the benefits of IT in the full extent and get one of highest rates in the
adoption of IT as well as OB through out the world.
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 95
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html
References
http://h71028.www7.hp.com/enterprise/downloads/iflex_sb.pdf
http://www.bccbd.org/html/itpolicy.htm
http://www.bttb.net/bttb_home_ddn_rate.htm
http://www.theage.com.au/news/Breaking/Bangladesh-net-users-cross
1m/2005/04/29/1114635721380.html?from=moreStories&oneclick=true
http://www.fnc.gov/Inter net_res.html
http://www.it.iitb.ernet.in/~sri
http://info.isoc.org/internet/history/brief.html
http://bba-mba-arena.blogspot.com/p/internship-reports_06.html 96