computer

science
project

by
harivigneshvaran.s
xii c
How are computers used in banking?
Modern banks use computers for storing financial information and
processing transactions. Tellers and other employees also use them to log
information. Customers often use computers for online banking

When online banking was introduced?

First online banking services in the United States. Online banking was first
introduced in the early 1980s in New York, United States

What is online banking?

Online banking is essentially the same system of money management as

traditional banking, but lets consumers conduct transactions remotely from
their own computers. In online banking, also called Internet banking,
customers may conduct standard personal financial tasks, such as paying
bills, making money transfers, checking account balances and making
deposits. Customers may also monitor their personal bank accounts, view
transactions and credits and download statements, and they communicate
with bankers through phone or email, say authors at Investopedia.

Online banking, also known as internet banking, e-banking or

virtual banking, is an electronic payment system that enables customers of
a bank or other financial institution to conduct a range of financial
transactions through the financial institution's website
Which bank introduced which facility first in India?

Savings account system in indai was started by presidency bank in 1833. Bengal bank,
established in 1784, was the first bank to introduce cheque system. ICICI bank was the
first Indian bank to provide internet banking facility. First bank to introduce ATM was
HSBC in 1987 in Mumbai.

Is online banking safe?

Online banking is safe as long as consumers follow some common-sense

precautions when using online banking services, according to the Federal
Deposit Insurance Corporation. If the online bank is insured through the
FDIC, online banking accounts are protected just like accounts at an FDIC-
insured brick-and-mortar bank are
The World Wide Web has permeated virtually every aspect of modern
life. If you have access to a computer with an Internet connection, an
almost limitless amount of goods, services and entertainment choices are
at your fingertips. You can do just about anything online, including your
banking and financial transactions. But is this wise? Just how comfortable
are you conducting your banking business in cyberspace? After all, online
banking has both advantages and disadvantages, namely:
Advantages
It's generally secure. But make sure that the website you're using
has a valid security certificate. This let's you know that the site is
protected from cyber-thieves looking to steal your personal and
financial information.
You have twenty-four-hour access. When your
neighborhood bank closes, you can still access your account and make
transactions online. It's a very convenient alternative for those that
can't get to the bank during normal hours because of their work
schedule, health or any other reason.
You can access your account from virtually anywhere. If you're on a
business trip or vacationing away from home, you can still keep a
watchful on your money and financial transactions - regardless of your
location.
Conducting business online is generally faster than going to the
bank. Long teller lines can be time-consuming, especially on a Pay
Day. But online, there are no lines to contend with. You can access
your account instantly and at your leisure.
Many features and services are typically available online. For
example, with just a few clicks you can apply for loans, check the
progress of your investments, review interest rates and gather other
important information that may be spread out over several different
brochures in the local bank.
Disadvantages
Yes, online banking is generally secure, but it certainly
isn't always secure. Identity theft is running rampant, and banks are
by no means immune. And once your information is compromised, it
 can take months or even years to correct the damage, not to mention
possibly costing you thousands of dollars, as well.
Some online banks are more stable than others. Not all online
setups are an extension of a brick-and-mortar bank. Some operate
completely in cyberspace, without the benefit of an branch that you
can actually visit if need be. With no way to physically check out the
operation, you must be sure to thoroughly do your homework about
the bank's background before giving them any of your money.
Before using a banking site that you aren't familiar with, check to
make sure that their deposits are FDIC-insured. If not, you could
possibly lose all of your deposits if the bank goes under, or its major
shareholders decide to take an extended vacation in Switzerland.
Customer service can be below the quality that you're used to.
Some people simply take comfort in being able to talk to another
human being face-to-face if they experience a problem. Although
most major banks employ a dedicated customer service department
specifically for online users, going through the dreaded telephone
menu can still be quite irritating to many. Again, some are
considerably better (or worse) than others.
Not all online transactions are immediate. Online banking is subject
to the same business-day parameters as traditional banking.
Therefore, printing out and keeping receipts is still very important,
even when banking online.
Online banking does have pros and cons. However, it's not only the wave
of the future, it's the wave right now, and the clock isn't likely to go
backward. If you take reasonable care to safeguard your personal and
financial information, you'll likely find that online banking is a convenient
tool that you can easily live with. Eventually, you'll probably even wonder
how you ever lived without it.
Safety Tips for online banking

Online banking is nice and convenient. But it does come with

certain risks. Just as you hear of people being robbed at ATMs,
or having their cards cloned, so online accounts are also a point
of vulnerability.
Follow these 8 tips and you can minimise the risks to your
finances and bank safely online:
1. Choose an account with two factor authentication
Try to get a bank account that offers some form of two factor
authentication for online banking.

These days many, but not all, banks offer a small device that
can be used to generate a unique code each time you log in.
This code is only valid for a very short period of time and is
required in addition to your login credentials in order to gain
access to your online account.

2. Create a strong password

If your bank requires a user-generated password in order to
access online accounts make sure you choose one that is strong.
The best way to achieve this is by making it long and a mix of
upper and lower case letters, numbers, and special characters.
Always avoid using any common words or phrases and never
create a password that contain your name, initials, or your
date of birth. If your bank allows it, change your password
every few months.

When setting up online banking, if your bank asks you to

provide answers to some standard security questions
remember that the answer you give doesnt have to be
the real one.
So you dont have to answer Thumper to the name of your
first pet make it something else, as if it was a password. Use
a password manager if you are concerned about how to
remember everything!

3. Secure your computer and keep it up-to-date

Security software is essential these days, regardless of what
you use your computer for.

As a minimum, make sure you have a firewall turned on and are

running antivirus software. This will ensure you are protected
from Trojans, keyloggers and other forms of malware that
could be used to gain access to your financial data.

Youll also want to keep your operating system and other

software up-to-date to ensure that there are no security holes
present.

4. Avoid clicking through emails

No financial institution worth their salt will send you an email
asking you to provide any of your login details.

If you receive an email that appears to be from your bank that

asks for such details then treat it with suspicion as it may well
be a phishing attempt to trick you into handing your
credentials over.

Likewise, be aware of links in emails that

appear to be from your bank this is a trick often employed by

the bad guys to get you onto a website that looks like your
bank. When you log in to your account they will steal your
username and password and, ultimately, your cash.

It is always safer to access your online bank account by typing

the address into your browser directly.

Also, be aware of unsolicited phone calls that purport to be

from your bank. While your financial institution may require you
to answer a security question, they should never ask for
passwords or PINs (they may ask for certain letters or numbers
from them, but never the whole thing).
If in doubt, do not be afraid to hang up and then call your bank
back via a telephone number that you have independently
confirmed as being valid.

5. Access your accounts from a secure location

Its always best practice to connect to your bank using

computers and networks you know and trust.

But if you need to access your bank online from remote

locations you might want to set up a VPN (Virtual Private
Network) so that you can establish an encrypted connection to
your home or work network and access your bank from there.

Look for a small padlock icon somewhere on your browser and

check the address bar the URL of the site you are on should
begin with https. Both act as confirmation that you are
accessing your account over an encrypted connection.

6. Always log out when you are done

It is good practice to always log out of your online banking
session when you have finished your business. This will lessen
the chances of falling prey to session hijacking and cross-site
scripting exploits.
You may also want to set up the extra precaution of private
browsing on your computer or smart phone, and set your
browser to clear its cache at the end of each session.

7. Set up account notifications (if available)

Some banks offer a facility for customers to set up text or
email notifications to alert them to certain activities on their
account. For example, if a withdrawal matches or exceeds a
specified amount or the account balance dips below a certain
point then a message will be sent.

Such alerts could give quick notice of suspicious activity on

your account.

8. Monitor your accounts regularly

It should go without saying that monitoring

the your bank statement each month is good practice as any
unauthorised transactions will be sure to appear there.

But why wait a whole month to discover a discrepancy? With

online banking you have access 24/7 so take advantage of that
 and check your account on a regular basis. Look at every
transaction since you last logged in and, if you spot any
anomalies, contact your bank immediately.

The above tips should go a long way to ensuring that you enjoy
the advantages offered by online banking without experiencing
any of the pitfalls.

Features of online banking:

With Online Banking you can:

View, Print, or Save your Account Statements.

View images of your checks/deposits.
Transfer funds between your accounts and create recurring transfers.
Make loan payments.
Submit a Change of Address request.
Submit a Stop Payment request.
Reorder checks.
Check your account balances, review activity, and access account history
Transfer funds between accounts and to other Santander customers accounts
Transfer funds to an external checking, savings, or money market savings account
at another domestic
financial institution
Set up recurring and future-dated transfers
View check images
Pay bills
Receive e-Bills and reminders through BillPay
Online Banking Guarantee

Online Statements

Access up to 25 months of personal deposit account statements

Select to "go paperless" by turning off delivery of paper statements
Download and save the statements (in pdf format) and/or print them