SMS Banking service provides instant notification about your transactions as and when it happens. It helps you to keep a watch on your account with a round the clock. SMS banking is a type of mobile banking, a technology-enabled service offering from banks to its customers, permitting them to operate selected banking services over their mobile phones using SMS messaging. SMS Banking allows customers to conduct various banking transactions (account balances, payments and transfers) by sending predefined text messages to the Bank via SMS gateway dedicated for the bank.
Internet banking, sometimes called online banking, is an outgrowth of PC banking. Internet banking uses the Internet as the delivery channel by which to conduct banking activity, for example, transferring funds, paying bills, viewing checking and savings account balances, paying mortgages, and purchasing financial instruments and certificates of deposit. An Internet banking customer accesses his or her accounts from a browser— software that runs Internet banking programs resident on the bank’s World Wide Web server, not on the user’s PC. NetBanker defines a “true Internet bank” as one that provides account balances and some transactional capabilities to retail customers over the World Wide Web. Internet banks are also known as virtual, cyber, net, interactive, or web banks.
Corporate Internet banking is secure internet based service that provides corporate clients with access to online banking. Benefits include: Speed in payment processing, Access to critical account information for decision making, Access to information such as daily exchange rates for several currencies including major trading currencies, Access to reports of all transactions, processed by clients through the platform, Availability of audit trail information of all user activities, Processing of several payments in one bulk remittance transaction
Online banking (or Internet banking or E-banking) allows customers of a financial institution to conduct financial transactions on a secured website operated by the institution, which can be a retail bank, virtual bank, credit union or building society.
To access a financial institution's online banking facility, a customer having personal Internet access must register with the institution for the service, and set up some password (under various names) for customer verification. The password for online banking is normally not the same as for [telephone banking]. Financial institutions now routinely allocate customers numbers (also under various names), whether or not customers intend to access their online banking facility. Customer numbers are normally not the same as account numbers, because number of accounts can be linked to the one customer number. The customer will link to the customer number any of those accounts which the customer controls, which may be cheque, savings, loan, credit card and other accounts. Customer numbers will also not be the same as any debit or credit card issued by the financial institution to the customer.
To date, more banks have established an advertising presence on the Internet— primarily in the form of informational or interactive web sites—than have created transactional web sites. However, a number of Banks that do not yet offer transactional Internet banking services have indicated on their web sites that they will offer such banking activities in the future.
Although Internet banks offer many of the same services as do traditional brick-and-mortar Banks, analysts view Internet banking as a means of retaining increasingly sophisticated customers, of developing a new customer base, and of capturing a greater share of depositor assets. A typical Internet bank site specifies the types of transactions offered and provides information about account security.
Because Internet banks generally have lower operational and transactional costs than do traditional brick-and-mortar banks, they are often able to offer low-cost checking and high-yield Certificates of deposit. Further, in some cases, web banks are not restricted to conducting transactions within national borders and have the ability to make transactions involving large amounts of assets instantaneously. Electronic banking provides a variety of attractive possibilities for remote account access, including:
- Availability of inquiry and transaction services around the clock;
- worldwide connectivity;
- Easy access to transaction data, both recent and historical; and
- “Direct customer control of international movement of funds without intermediation of financial institutions in customer’s jurisdiction.”
OPENING AN ACCOUNT There are several ways to open and fund an electronic banking account. Customers who have existing accounts at brick-and-mortar banks and want to begin using electronic banking services may simply ask their institution to obtain a password for Internet banking. Either approach requires minimal paperwork. Once they have joined the system, customers have electronic access to all of their accounts at the bank. New customers can establish an account either by completing a account opening application form in person to an institution offering such a service or by accessing a bank’s web site and applying online for Internet banking. In either instance, the customer can fund the new online account with a check, wire transfer, or other form of remittance. No physical interface between the customer and the institution is required.
To access online banking, the customer would go to the financial institution's website, and enter the online banking facility using the customer number and password. Some financial institutions have set up additional security steps for access, but there is no consistency to the approach adopted.
Online banking facilities offered by various financial institutions have many features and capabilities in common, but also have some that are application specific.
The common features fall broadly into several categories
- A bank customer can perform non-transactional tasks through online banking, including -
- viewing account balances
- viewing recent transactions
- downloading bank statements, for example in PDF format
- viewing images of paid cheques
- ordering cheque books
- download periodic account statements
- Downloading applications for Mobile banking, E-banking etc.
- Bank customers can transact banking tasks through online banking, including -
- Funds transfers between the customer's linked accounts
- Paying third parties, including bill payments and fund transfers
- Investment purchase or sale
- Loan applications and transactions, such as repayments of enrollments
- Register utility billers and make bill payments
- Financial institution administration
- Management of multiple users having varying levels of authority
- Transaction approval process
- the process of banking has become much faster
Some financial institutions offer unique Internet banking services, for example
- Personal financial management support, such as importing data into personal accounting software. Some online banking platforms support account aggregation to allow the customers to monitor all of their accounts in one place whether they are with their main bank or with other institutions.
The case of CBO
Currently CBO has incorporated all these services into its Core Banking System, which enable to reach broader customer base.
To go with it step by step
CBO is now in a verge of launching SMS banking services. Appropriate procedure documents are made ready and in a process of approval. This service will notify the subscribers every transaction made on their linked accounts accompanied by the remaining balances. It also enables customers to request the latest three transactions made on their primary account.
When this SMS banking facility is made available, the other services including internet banking, corporate internet banking and mobile banking will accompany to reach our customers, increase their satisfaction, and control every transaction on their accounts.