A Term Project On

Online banking capabilities

Submitted to:

Shawkat Salim Rahman Lecturer, School of business United International University Submitted by:
Md.Arfiul Islam Md. "a#i $abiul Islam Md. Mahedi &asan Syed Masumur $ahaman ID: 111 0 01! ID: 111 0!1 11% ID: 1110 '0 ( ID: 1110 11 )

Submission Date: September 13, 2

ST"D#$T D#%&A'AT(O$

*his is to inform that the term on )Online *anking capabilities+ has been +re+ared in the fulfillment of the re,uirement of the course - #,*usiness+. It has been +re+ared for academic basis only. So, any one can ta.e assistance only for academic +ur+ose. /ut, +hoto co+yin0 a sentence from this term +a+er is strictly +rohibited 1ithout +rior +ermission.

2n behalf of, *he entire 0rou+ members

A%-$O.&#D/#0#$T
3irstly, all +raise to Almi0hty Allah 1ho 0ives us stren0th to com+lete this term +a+er. In the +rocess of doin0 this term +a+er 1e 1ould li.e to +ay our 0ratitude and res+ect to some im+ortant +erson for their .ind co4o+eration. *hen 1e are very much 0rateful to our course teacher, 1ho 0ave us this o++ortunity for +re+arin0 this survey - T1e Online *anking %apabilities5. /eside that she 0uides us to +re+are the term +a+er in an or0ani#ed manner. 6e are also very +leased to him for 0ivin0 clear conce+t to us about this to+ic. Secondly, 1e 1ant to say that 1e are doin0 0reat deal of hard 1or. for +re+arin0 this +a+er. 6e collect various information about +a+er from bro1sin0 the Internet, 0oin0 to the ban.s, and many other sources.

3inally, 1e are indebted to them 1ho have directly and indirectly assisted us in conductin0 the study. 6e a0ain 1ant to 0ive our cordial love and res+ect to our honorable course teacher because from him 1e are learnin0 a 0reat deal of thin0s related to this Survey +a+er. 6e ho+e that this +a+er has been +re+ared for the fulfillment of the course re,uirement.

&#TT#' O2 T'A$S0(TTA&
Dated: Se+tember 1%, '007 8ourse Instructor: Mr. Shawkat Salim Rahman 8ourse 9ame: :4/usiness 8ourse 8ode: M;*%''< U9I*:D I9*:$9A*I29AL U9I=:$SI*> Dhanmondi, Dha.a

Dear Sir, 2or t1e Acceptance o3 t1e Term Paper 6ith due res+ect and humble submission, 1e, the students of //A, are submittin0 our term +a+er on )Online *anking %apabilities 5 It 0ives us immense +leasure to inform you that 1e have com+leted our term +a+er under your .ind hearted direct su+ervision.

9o1, 1e have +laced our term +a+er before you for your .ind a++roval. 6e ho+e that our term +a+er 1ill satisfy you. Sincerely yours,

2n behalf of, *he entire 0rou+ members

Executive Summary

Purpose : *his study is an attem+t to sho1 the e?tent and ,uality of services and +roducts offered on and off the internet by various ban.s in /an0ladesh . @articularly, it see.s to e?amine the area of electronic ban.in0 A+o+ularly .no1n as e4ban.in0B and its influence on the +o+ulation of a develo+in0 country li.e /an0ladesh Approac1: *he data for this study +rimarily consists of survey re+orts and the ratios to sho1 the stren0th of ban.s in different sectors of the ban.in0 industry such as +rivate, +ublic, forei0n, re0ional rural and coo+erative. Data for e4ban.in0 analysis is collected from the ban.sC res+ective 1ebsites. 3indin0s: *he results sho1 that internet ban.in0 is still not very +o+ular in /an0ladesh and is in the develo+ment sta0e. *he Duantitative :valuation Method AD:MB has hel+ed evaluate the +resence of e4ban.in0 in /an0ladesh. Ma?imum ban.s have still not +rovided their customers 1ith internet ban.in0 facilities 1hile 3e1 multinational ban.s are +rovidin0 that e?cellin0 in the field of internet ban.in0. &imitations: 2ne of the main limitations of this research is its sco+e and si#e 1hich may have an affect on the stren0th of conclusions that can be dra1n. /ut, any conclusions in this research are +roved fully 1ith statistical evidence. Originality45alue: *he .no1led0e and understandin0 of the subEect of Fe4ban.in0C is necessary for the Fmodern individualC to survive in this 0eneration4G. :4ban.in0 also +rovides ban.s to further their 0ri+ in their res+ective tar0et mar.ets and +rovide e?tensive services in the da1n of the e4ban.in0 a0e in /an0ladesh

($T'OD"%T(O$ :lectronic ban.in0 is an umbrella term for the +rocess by 1hich a customer may +erform ban.in0 transactions electronically 1ithout visitin0 a bric. and mortar institution. *he follo1in0 terms all refer to one form or another of electronic ban.in0 +ersonal com+uter ban.in0 internet ban.in0 virtual ban.in0 online ban.in0 home ban.in0 remote electronic ban.in0 and +hone ban.in0 .+c ban.in0 and internet or online ban.in0 is the most fre,uently used desi0nations. it should be noted ho1ever that the term used to describe the various ty+es of electronic ban.in0 are often used interchan0eably. :lectronic ban.in0 is an activity that is not ne1 to ban.s or their customers . ban.s havin0 been +rovidin0 their services to customers electronically for years throu0h soft1are +ro0rams. *hese soft1are +ro0rams allo1ed the users +ersonal com+uter to dial u+ the ban. directly . in the +ast ho1ever ban.s have been very reluctant to +rovide their customers 1ith ban.in0 via the internet due to security concerns. # banking is de3ined as the automated delivery of ne1 and traditional ban.in0 +roducts and services directly to customers throu0h electronic interactive communication channelCs ban.in0 includes the systems that enable financial institution customers individuals or businesses to access accounts transact business or obtain information on financial +roducts and services throu0h a +ublic or +rivate net1or. includin0 the internet customers access e ban.in0 services usin0 an intelli0ent electronic device T6# /&O*A& # *A$-($/ S%#$A'(O *he ban.in0 industry is e?+ected to be a leadin0 +layer in e4business 1hile the ban.s develo+ed countries are 1or.in0 +rimarily via internet as non branch ban. ban.s in the develo+in0 countries use the internet as an information delivery tool to im+rove relationshi+ 1ith customers In early '001 a++ro?imately !0 +ercent of e business in the u. 1as concentrated in the financial services sector. and 1ith the e?+ected 10 fold increase of the /ritish e business mar.et by '00) the share of the financial services 1ill further increase around one fifth of finish and S1edish ban. customers are ban.in0 online 1hile in the us accordin0 to U98*AD online ban.in0 is flo1in0 at an annual rate of !0 +ercent and the of online of accounts are e?+ected to reach 1< million by '00%. (n Asia the maEor factor restrictin0 0ro1in0 of e ban.in0 is security in s+ite of several countries bein0 1ell connected via internet. Access to hi0h ,uality e ban.in0 +roducts is an issue as 1ell . maEority of ban.s in Asia are Eust offerin0 basic services com+ared 1ith those of develo+ed countries. Still , e ban.in0 seems to have a future in Asia. Accordin0

to Mc"inney survey ban.in0 1ill succeed if the basic features es+ecially bill +ayment are handled 1ell. bill +ayment 1as the most +o+ular feature cited by )0 +ercent of res+onded of the survey .ho1ever, +rovidin0 this service 1ould be difficult for ban.s in Asia because it re,uires a hi0h level of security and involves arran0in0 transaction 1ith a variety of +layers. AD5A$TA/#S O2 $#T *A$-($/ T1e *anks7 Perspecti8e *he 0eo0ra+hical barriers is removed 1ith the hel+ of internet ban.in0, ban.s can reach out to a much 1ider base of customers as com+ared to the traditional 1ay. Internet ban.in0 has enabled the local ban.s to o+erate in the 0lobal scenario. *his is a very efficient and cost effective techni,ue of ban.in0. It has +rovided the ban.s 1ith the challen0e of develo+in0 and catchin0 u+ 1ith the fast +ace of the industry and ban.s failin0 to ado+t this techni,ue +rove to be la00in0 behind and underdevelo+ed. T1e %ustomers7 Perspecti8e :lectronic ban.in0 has come to be develo+ed as a host of a 1ide bou,uet of services ran0in0 from ,ueries to real time transactions. It offers the customers the fle?ibility of ban.in0 from any +art of the 1orld 1hich has narro1ed the +hysical 0a+ bet1een the ban.s and their customers. HSBC Bank ;eneral ban.in0 information and the +rofile of the ban. are very 1ell +ut u+ on the 1eb+a0e. *he annual re+orts are 1ell u+dated alon0 1ith many other revie1 re+orts. :m+loyment information such as career o++ortunities, cam+us recruitment and career counselin0 are a very inte0ral +art of &S/8 /an.. It also hosts the 8= builder 1hich ma.es it very easy for +ros+ective em+loyees to build their 8=s accordin0 to the needs of the various sectors of the ban.. *he interest rates and financial calculators are available on the home+a0e. Account information access and a++lications for services are 1ell defined. All the services that can be lin.ed 1ith e4ban.in0 are found under one sin0le cano+y of the 1eb+a0e of &S/8 ban.. Lin.s to financial information, community information, local and non4local business are very easily available. *he ban. is +roud to host a 1eb+a0e of this .ind 1hich is e?tremely user friendly 1ith all the +ossible services +rovided. Hust one dra1bac. of this 1eb+a0e is that /en0ali lan0ua0e facility is not +rovided 1hich ma.es it very difficult for the /en0ali literate customers to access any +art of the 1eb+a0e.

%(T9 *ank *he 0eneral ban.in0 information and history is not very u+ to the mar.. 3inancial educational information is very 1ell set u+ for the customers accessin0 this 1eb+a0e.

interest rates as in the case of all other ban.s are +rovided. Account information access and a++lications for services are not on the home+a0e but have a se+arate lin. 1hich leads to their access. All internet ban.in0 services are very ,uic.ly accessible. 8I*> ban. 0uarantees that no money is held in Fcyber4s+aceC and that all transactions are ,uic.ly +rocessed. *he +ortal is lin.ed to all the essential information such as financial information, community information, local and non4local businesses are available on the 1eb+a0e. 6ireless ca+abilities, search functions are not found on the 1eb+a0e. *he dra1bac.s of the 1eb+a0e are that the aesthetics are not very +leasin0 and /en0ali lan0ua0e facility is not +rovided. *ank Al3ala1 limited *he 0eneral ban.in0 information and history is not very u+ to the mar.. 3inancial educational information is not available set u+ for the customers accessin0 this 1eb+a0e. .Account information access and a++lications for services are not on the home+a0e but have a se+arate lin. 1hich leads to their access. All internet ban.in0 services are very ,uic.ly accessible. *he +ortal is lin.ed to all the essential information such as financial information is available but the community information, local and non4local businesses. 6ireless ca+abilities, search functions are not found on the 1eb+a0e. *he dra1bac.s of the 1eb+a0e are that the aesthetics are not very +leasin0 and /en0ali lan0ua0e facility is not +rovided.

Social Islamic Bank Limited

*he 0eneral ban.in0 information and history 3inancial educational information is not available. *hey are totally almost #ero online ca+abilities in terms of e ban.in0 they have searchin0 information facility and real time fund transfer at their 1eb +a0e is not available.

STANDARD CHARTERED BANK

*he 0eneral ban.in0 information and history is not very u+ to the mar.. 3inancial educational information is not available set u+ for the customers accessin0 this 1eb+a0e. .Account information access and a++lications for services are not on the home+a0e but have a se+arate lin. 1hich leads to their access. All internet ban.in0 services are very ,uic.ly accessible. *his ban. 0uarantees that no money is held in Fcyber4s+aceC and that all transactions are ,uic.ly +rocessed. *he +ortal is lin.ed to all the essential information such as financial information is available but the community information, local and non4local businesses. 6ireless ca+abilities are not found but search functions are found on the 1eb+a0e. Also 1e found

ate their 1eb +a0e interest ,uota. *hey are tryin0 to movin0 their all ban.in0 activities at online li.e hsbc ban.. .

rime Bank Limited

*he 0eneral ban.in0 information and history is not available. 3inancial educational information is not available on this 1eb+a0e. .Account information access and a++lications for services are not on the home+a0e but have a se+arate lin. 1hich leads to their access. *he +ortal is lin.ed to all the essential information such as financial information is community information, local and non4local businesses information is available. 6ireless ca+abilities and search functions are found on the 1eb+a0e. Also 1e found ate their 1eb +a0e interest ,uota. *hey are tryin0 to movin0 their ban.in0 activities at online li.e other ban. in /an0ladesh.

!anata Bank
*he 0eneral ban.in0 information and history is not very u+ to the mar.. 3inancial educational information is not available at 1eb+a0e. .Account information access and a++lications for services are on the home+a0e but have a se+arate lin. 1hich leads to their access. All internet ban.in0 services are very ,uic.ly accessible. *his ban. 0uarantees that no money is held in Fcyber4s+aceC and that all transactions are ,uic.ly +rocessed. *he +ortal is lin.ed to all the essential information such as financial information is available but the community information, local and non4local businesses is not available. 6ireless ca+abilities, search functions are not found on the 1eb+a0e. *he dra1bac.s of the 1eb+a0e are that the aesthetics are not very +leasin0 and /en0ali lan0ua0e facility is not +rovided.

A/ /A9"
*he 0eneral ban.in0 information and history is available. 3inancial educational information is not available on this 1eb+a0e but interest rate ,uotes and current ban. and local ne1s are available . Account information access and a++lications for services are not on the home+a0e but have a se+arate lin. 1hich leads to their access. In *ransactional information only cor+orate services and online insurance services are available. *he +ortal is lin.ed to all the essential information such as financial information is community information, local and non4local businesses information is available. 6ireless ca+abilities and search functions are not found on the 1eb+a0e. Also 1e found ate their 1eb +a0e interest ,uota. *hey are tryin0 to movin0 their ban.in0 activities at online li.e other ban. in /an0ladesh .

EBL
;eneral ban.in0 information and the +rofile of the ban. are very 1ell +ut u+ on the 1eb+a0e. *he annual re+orts are 1ell u+dated alon0 1ith many other revie1 re+orts. :m+loyment information such as career o++ortunities,. It also hosts the 8= builder 1hich ma.es it very easy for +ros+ective em+loyees to build their 8=s accordin0 to the needs of the various sectors of the ban.. *he interest rates are available on the home+a0e. Account information access and a++lications for services are 1ell defined. All the services that can be lin.ed 1ith e4ban.in0 are found under one sin0le cano+y of the 1eb+a0e of &S/8 ban... Lin.s to financial information, community information, local and non4local business are very easily available. *he ban. is +roud to host a 1eb+a0e of this .ind 1hich is e?tremely user friendly 1ith all the +ossible services +rovided. *heir 1eb +a0e is hi0hly secure by verisi0n. Hust one dra1bac. of this 1eb+a0e is that /en0ali lan0ua0e facility is not +rovided 1hich ma.es it very difficult for the /en0ali literate customers to access any +art of the 1eb+a0e.

One Bank Limited

;eneral ban.in0 information and the +rofile of the ban. are very 1ell +ut u+ on the 1eb+a0e. *he annual re+orts are 1ell u+dated alon0 1ith many other revie1 re+orts. :m+loyment information such as career o++ortunities It also hosts the 8= builder 1hich ma.es it very easy for +ros+ective em+loyees to build their 8=s accordin0 to the needs of the various sectors of the ban.. *he interest rates are available on the home+a0e. Account information access and a++lications for services are 1ell defined. *hey have the bill +ayment facilities. Lin.s to financial information, community information are available but local and non4local business information are not available. *he ban. is +roud to host a 1eb+a0e of this .ind 1hich is e?tremely user friendly 1ith all the +ossible services +rovided. *heir 1eb +a0e is hi0hly secure by verisi0n and customer can access the 1eb +a0e by their +in no. Hust one dra1bac. of this 1eb+a0e is that /en0ali lan0ua0e facility is not +rovided 1hich ma.es it very difficult for the /en0ali literate customers to access any +art of the 1eb+a0e. %O$%&"S(O$ 2vervie1 of /an0ladeshi online ban.in0 ca+abilities is not 0ood li.e other country. *he multinational com+anies are 0ivin0 this services but ma?imum ban. of our com+any is not +rovidin0 this services. /ecause in our country ban.s are still thin.in0 li.e Fchic.en and :00C +roblem. Also 0overnment is not encoura0in0 to our ban. for online ban.in0. Also almost +eo+le are not a1are of online ban.in0 so the +roblem is still 0oin0 on for future online ban.in0. 3rom the analysis 1e see that &S/8,:/L,@rime /an., Dha.a /an. limited they are ahead in online ban.in0 and theirs rate is hi0her than the other ban.. 2n the other hand social Islamic ban. limited, *rust ban. limited, 3irst security ban. are la0 behind in the online ban.in0 and their online ban.in0 ca+abilities ran.in0 are very lo1.