Online Banking System

Simply, the banks perform financial intermediation with the deposits of the customers/ business and then lending out that money to earn profits. The banking system concern, it plays a vital role in any country economy by encouraging investment activities as well as money savings. Moreover, online baking, providing debit and credit cards, ATM facilities, providing safe custody of valuable items and lockers are some of the facilities provided by banks to make their relationship with the customers more effective and efficient.

Internet banking renders location and time irrelevant, and empowers customers with greater control of their accounts. Banks achieve cost and efficiency gains in a large number of operational areas. This paper addresses the aspects of reliability and accessibility from a banking enterprise point of view and puts forth present day solutions to problems involving these issues. An Indian perspective of Internet banking is also looked at in order to gaining a better perspective regarding the situation.

The present project is Sever Integrated Banking is the easiest form of accessing one’s Bank account. The main objective of this project is to facilitate the Bank Customer to access his/her account without having needed to go to Bank or ATM. Now we can access our bank account and conduct a host of banking transactions and inquiries through Internet service. The Net Banking solution’s self-service capabilities empowers customers to manage their banking activities better. The general procedure is that the Customer has to go to near ATM/Bank in order to access his account. The main disadvantage of this system is, it is time consuming, costly and it is a tedious process to go there for every small work. The current project gives the best alternative. As it is 24 hrs available and has a maximum reach even to the places where banks are not available. Customers can make fund transfers to others, knowing all information regarding all policies and also customer can pay all bills through net only.

Banking online is a recently developed convenience. How often do you forget to pay your bills? With online banking your bills are paid on time. You also have immediate access to your bank statements updated by the minute.

With the advance technology, banking has become a 24 hours a day and seven days a week ability. Not too long ago banks were only open from 9:00am to 3:00pm, workers and businesses rushing to get to the bank before they close. Paychecks were handed out personally not direct deposit, cashing or depositing a paycheck entailed a trip to the bank. Now most companies have direct deposit and the printed paycheck is becoming a thing of the past, this is only one example of how technology in banking has changed in society. The electronic banking (e-banking) can be described as the automated method of new and traditional banking services which reduce cost, and simplify front and backend process satisfying customers.

Technological advancement has had a gigantic effect in the banking industry. Over the past few decades, the financial services industry has changed considerably with banking transforming from the pen and paper method to the computers and internet method. The pen and paper method took weeks or even months for the transaction to be eventually completed, and then the dramatic introduction of the computer and internet method which changed that time frame to only a matter of seconds to be completed, which reduced the amount of time and labor needed to complete a transaction significantly. Banking is considered one of the most important economic sectors with it being severely influential and responsive to any little change, whether it is domestic or international. Some extreme changes that were brought about by the development of this new technology turned into a globalized nature for the financial services industry. One stroke of a key on a computer could and would change a person 's life extensively or even have a global impact. The new technologies that were created and introduced changed how the consumers managed their money from that time on. Technology has helped to protect peoples’ hard earned money and make it much more impossible for people to be able to write out bad checks or even holding up a bank. The advancement in technology however, also came with some security risks as most things do, that could affect the money that people trusted with the bank and

Although, electronic banking provides many opportunities for the banks, it is also the case that the current banking services provided through internet are limited due to security concerns, complexity and technological problems (Sathye, 1999 & Mols, 1999). According to Financial Services Authority (FSA) 2010, banks face several risks but notably are; Safety situations around ATMs, abuse of bank cards by fraudsters at ATMs and the danger of giving your card number when buying on line. Security risk is a major source of concern for both customer and the bank. Since E- banking services are offered using network, it is exposed to risk environments hence leading to security breaches. The consequences of security threats are potential financial, legal and reputational implications.

Online banking approach provides flexibility to remain connected with your valuable customers 24 hours and keep them updated about their desired information on a regular basis. This helps to enhance the image and reputation of the bank. Provision of fast value added services helps to acquire customer attention more promisingly, with added customer loyalty and trust. A lot of new innovative technologies and advance services are rapidly becoming a part of online banking system. This will provide a competitive edge to bankers by attracting more customers with powerful client oriented packages and consumer driven initiates.

Information technology has taken a further step in the fundamental development in the banking system. Over the years there has been a high increase in the use of internet and mobile banking. As a new way of performing banking transaction through the internet as a distribution channels. The development and increase in the information technology on the banking system has made operations and

Online Banking is also one of the innovations especially in economics field. Online banking had and having huge impact on society and individuals. It also affects to economy as well as small and large businesses because online banking changed the way people make payments from one decade ago. Online banking is even faster than bank machines and it made payments easier.

Banking technologies allow for online transactions, standing orders and the use of ATMs to make bill payments. Cardholders of some banks may use others ' free of charge and the banks themselves are becoming more open-plan, providing easy access to business

Traditional banks offer many different services to their customers. These services include accepting customer money deposits, making loans to individuals and companies and providing servicing to the various loans and accounts offered. When compared with traditional channels of offering banking services through physical branches, electronic banking (e-banking) uses the Internet to deliver traditional banking services to their customers, such as opening accounts, transferring funds, and electronic bill payment (Fan, M. 2002).

This is to certify that the project study entitled “Analysis of computerized banking system- HDFC Bank” is a bonafide work done by and submitted in partial fulfilment of the award of degree in Post Graduate Diploma in Management.

Over the last few decades information technology has played an important role in Indian economy. It has affected all the industries especially the banking industry and has provided a way for the banks to differentiate their products and services. The traditional way of financial services delivered to customers called the branch based operations which had been used by the banks for more than 200 years, has been replaced by the advent of multiple technologies and application. For instance, Automated Teller Machine (ATM) displaced cashier tellers, telephone represented by call centers replaced the bank branch, the internet replaced mail, credit cards and electronic cash replaced bank transactions. The reason was the numerous key advantages that banks could gain by providing electronic banking services. In this way they had lower transactions cost, 24 hour trading, more extended business territory and also increased efficiency in daily banking process. The Banking Sector is also facing very stiff competition. In order to succeed such competition, they must offer a wide array of products with the latest technology. At present many banks and financial institutions are actively developing new electronic banking products for their customers throughout the world (Alagheband 2006) . The key players of banking industry are its customers and all the efforts made by the banks are to satisfy the desirable needs of

Today banks operate in an extremely globalized, liberalized, privatized and a competitive environment. Indian banking industry has witnessed an incredible growths due to extensive changes that are taking place in the information technology. The development and the increasing progress that is being experienced in the Information and Communication Technology have brought lot of changes in almost all facets of life. In the Banking Industry, it has been in the form of online or e-banking, which is now replacing the traditional banking practice. The e-banking constitutes an electronic alternative network of payments and benefit of services. E-banking has the potential to transform the banking business as it significantly lowers transaction and delivery costs. Today e-banking has experienced phenomenal growth and has become one of the main avenues for banks to deliver their products and services. Online banking has a lot of benefits which add value to customers’ satisfaction in terms of better quality of service offerings and at the same time enable banks gain more competitive advantage over other competitors. There are some associated challenges identified in the study that seem to hinder the success of e-banking services and thus constitute major concern to both financial institutions and customers. This