Introduction to E-commerce

• E-commerce means electronic commerce
• Information and Communications Technologies (ICT) are central to economic growth and productivity.
• Networks can increase productivity, decrease costs, and open new market opportunities
• Using the Internet and email to conduct business is not uncommon.
• Electronic Commerce is a methodology of modern business which addresses the need of business organizations, vendors, and customers to reduce costs and improve quality while increasing delivery speeds.
• E-commerce refers to paperless exchange of business information.
• Electronic Data Exchange (EDI)
• Electronic Mail (e-mail)
• Electronic Bulletin Boards
• Electronic Fund Transfer (EFT)
• Other Network-based technologies
• The concept of e-commerce is about using the internet to do business better and faster.
• E-commerce is the process of buying and selling over the Internet, or conducting transactions involving the transfer of ownership or rights to use goods or services via a computer-mediated network without using paper documents.
• E-commerce includes online business activities for products and services.
• E-commerce pertains to "any form of business transaction in which the parties interact electronically rather than by physical exchanges or direct physical contact".
• E-commerce includes business transacted through computers, telephones, fax machines, barcode readers, credit cards, ATMs, or other electronic appliances

Examples of E-commerce

• Purchasing a book on the Internet
• A government employee reserving a hotel room over the Internet.
• A business calling a toll-free number to order a computer using the seller's interactive telephone system.
• A business buying office supplies online or through an electronic auction.
• A manufacturing plant ordering electronic components from another plant within the company using the company's intranet.
• Withdrawing funds from an ATM
• Accepting credit cards for commercial online sales
• Selling to consumers on a pay-per-download basis through a Web site

E-Banking

• E-banking is the automated delivery of banking products and services directly to customers through electronic, interactive communication channels.
• E-banking includes systems enabling bank customers to access accounts, transact business, or obtain information on financial products and services through a public or private network.
• Customers access e-banking services using devices like PCs, PDAs, ATMs, kiosks, or touch-tone telephones.

Types of E-Banking

• Electronic banking is also known as virtual banking, online banking, or internet banking.
• It uses electronic and telecommunications networks to deliver banking products and services.
• ATMs (Automated Teller Machines)
• Telephone Banking
• Electronic Clearing Cards
• Smart Cards
• EFT (Electronic Funds Transfer) System
• ECS (Electronic Clearing Services)
• Mobile Banking
• Internet Banking
• Privatization and globalization of banks led to competition among established and new banks.
• Banks increased the number of services offered, including insurance, pension funds, mutual funds, money market accounts, loans, credit, and securities.
• Financial innovation in banking over the past decade triggered a shift away from the traditional banking model to a digital banking one.
• The customer demand for ease of business led to the concept of E-banking, meaning banking anytime, anywhere.
• Digitization ushered in a new era for financial services.
• The concept of E-banking has redefined the banking model resulting in established banks being forced to increase digital adoption and drastically reduce overheads.
• Services are divided into four categories: Savings, Payment services, Borrowing, and Other financial services.
• Online Banking Services are accessible to customers with a valid user ID and ID allocated by the bank.
• The system offers services like checking balances, transferring money, requesting checkbooks, changing addresses, stopping check payments, and viewing statements.
• The system allows customers responsiveness, affordability, and saves time.

ATM Card

• ATMs are mostly used to withdraw cash.
• Deposits can also be made at ATMs.
• Requires a PIN (Personal Identification Number).
• All withdrawals are immediately deducted from the customer's account.

Advantages of Using ATM

• Cash can be withdrawn at any time.
• Convenience of multiple locations.
• ATM card is protected by a PIN.
• No need to fill out withdrawal and deposit slips.
• ATMs are faster than going to the bank.

Debit Card

• A debit card is a plastic payment card known as a check card or bank card.
• Provides the cardholder with electronic access to their bank account.
• It may bear some stored value.
• The payment is made, while most relay a message to the cardholder's bank to withdraw funds from a payer's designated bank account.
• The card can be used instead of cash when making purchases.
• In some cases, the primary account number is assigned exclusively for use on the Internet and there is no physical card.

Telephone Banking

• Available commercially in the 1980s and first introduced by Giro bank in 1984 in the United Kingdom.
• It is a banking service that enables customers to perform a range of financial transactions over the telephone without visiting a branch or ATM.
• Saw growth during the 1980s and early 1990s, and was heavily used by direct banks.
• The development of online banking in the early 2000s started a long-term decline in the use of telephone banking

SMS Banking

• SMS Banking is a mobile technology allowing customers to request and receive banking information via SMS.
• Individuals or corporate bodies can manage their bank accounts, check balances, perform check requests, transfer money, pay bills, and perform other banking transactions.
• Two methods of SMS are widely used in applications: PUSH & PULL.

Electronic Alert

• Electronic Alert means a notification, instruction, communication, order, message, data, or information sent by the Bank via SMS, email, or another mode of electronic delivery.
• If multiple authorized users or multiple accounts are linked to Internet Banking, all contact details on the Bank's records will receive an Electronic Alert and one-time password.

Mobile Banking

• Allows customers to conduct banking transactions through their mobile phones.
• It addresses limitations of internet banking by not requiring a computer.
• Mobile banking models include bank-focused models for additional services, bank-led models through retail agents, and non-bank led models for account management and safekeeping funds.
• State-owned banks in India have seen poorer customer response to mobile banking than private banks.