42 Development of the electronic banking services in Ro

mania
Development of the electronic banking services in Romania
Ph.D. Associate Professor Magdalena Rădulescu
Faculty of Economic Studies, University of Pites
ti
Pitesti, Romania
magdalenaradulescu@yahoo.com
Ph.D. Lecturer Luminiţa Şerbănescu,
Faculty of Economic Studies, University of Pites
ti
Pitesti, Romania
luminitaserb@yahoo.com
Abstract 1. Introduction
In the present, a lo
t of banks have created
Launching in Romania the banking products and
advertisement – at the
beginning under the form of
services with long-distance access was based on
web-sites with infor
mation, and then they’ve created
image motives for the Romanian banks, domestic
interactive web-site
s and ulterior transactional web-
institutions or foreign banks branches. In this way,
sites. However there
are a number of banks that
banks wanted to be innovative and they didn’t
haven’t offered there
banking services through
address necessarily to their clients’ needs. Once
internet, but they a
nnounced their clients on web-
the long-distance payment instruments diversified
sites that they will
offer this kind of banking
and once the clients became aware of the benefits
activities in the fu
ture.
of such services, the electronic banking services
corroborated with the new technologies seduces
General, electronic
banking represents some kind of
the clients with their expected benefits: comfort,
“umbrella” that covers t
he whole process through
promptness and accessible costs. As an alternative
which a client can r
ealize electronic banking
to the classic payment system, the fees attached to
transactions without
the need of visiting the bank.
the virtual access are regularly smaller than the
Banking services thr
ough internet have, generally,
fees of the classic services.
operational and tran
sactional costs cheaper than
usual banking servic
es. These banking services aren’t
Strong development of the Internet and mobile
limited at only one
physical location (psychical site);
telecommunications is fortunately also met in
sometimes there are
Internet banks without them
Romania, so some of the industries can benefit of
having in a physical
way a branch office such as, for
the major advantages offered by the new
example, Telebank (A
rlington, Virginia) and
technologies. So, banking industry lunched on the
Banknet (UK). Moreov
er, in some cases, the bank’s
market in the last years the electronic banking
web-sites aren’t restr
ained to realize their
services as a viable alternative for classic banking
transactions within
national frontiers and have the
services which assume the client’s presence at the
capacity of performi
ng transactions that involves
banking desk.
large sums of money.
In the last years, Internet became a popular
Against traditional
channels through which banking
distribution platform for electronic banking.
services are offered
through the agency of branch
Consumers of the electronic banking had easier
offices, e-banking u
ses the Internet to deliver their
access to their accounts in every moment. Still with
clients traditional
banking services, like: creating
this comfort, the e-banking adopting rates were
banking accounts, fu
nds transfer and electronic
very low in many countries. In Romania, of 39
payments of the bill
s.
banks that operate in the Romanian market, 21
offer their clients 28 long-distance payment
At first, the introd
uction of banking services with
instruments of which 14 are Internet Banking
remote access in Rom
ania has active bank’s image
solutions, 12 are Home Banking solutions and 2
reasons on Romanian
territory, even if they are
are Mobile Banking solutions.
domestic banking ins
titutions or abroad unites. This
way, banks were desi
red to be innovating and
This paper aims to present the types of the
weren’t necessarily ad
dressing to a bank clients’
electronic banking services in Romania
needs. Once the dive
rsification of supply, of
comparative to other countries, their development
instruments of payme
nt with remote access and of
in the recent years, their benefits for banks and
the benefits of this
type of services were made,
customers, their costs and risks and their risk
electronic banking s
ervices in collaboration with new
management.
technologies, seduce
s the patronage with the fact that
Keywords: electronic banking services, security they offer some unex
pected benefits – convenience,
banking risks, Internet Banking. promptness, accessib
le costs etc (Cechin, 2004).
Communications of the IBIMA
Volume 8, 2009 ISSN: 1943-7765
Magdalena Rădulescu and Luminita Serbanescu
43
As alternative to the classic system of payment, the One of the current p
roblems of e-banking is being
fees attached to the virtual access are usually represented by the i
mpact of these services to
cheaper than the ones of the classic services (with traditional banking
players.
10% in case of BRD, 15% at Romextera, 25% at
Libra Bank and till 50% at Raiffeisen Bank and at The fact that Intern
et revolutionized the economy is a
HVB Ţiriac. At BCR there are no differences from truth that can be prov
en by the following arguments
classic services). (Danila, 2004):
E-banking
services are much cheaper than
-
A major part in convincing clients in using remote the ones u
nfold through branch offices or
banking services is being held by the inclusion of even throu
gh phone.
demo applications on banking institutions sites E-banking
services can be performed
-
which simulates the mode in which transactions are without di
fficulty after the install of the
progressing. informatic
s applications.
The provid
ers will be able to attract the
-
Such modalities of onset of the patronage have the most signi
ficant part of the banks profits.
advantage of offering a plus of confidence for the The produc
ts will be distributed through
-
potential user and at the same time, it keeps him individual
lines. This way, traditional banks
away from the unpleasant situation of observing on will be ab
andoned and wouldn’t perform
his own expense that the bank’s application is payments and
discounts.
maybe too complex or too hard to use, and so the
initial expectations are only partial satisfied. The start of e-banki
ng presumes very high prices.
Obtaining a confiden
t brand is very expensive and
The main questions that we try to answer in this presumes costs for t
he commercial ad and plus high
paper are: which is the actual stage of e-banking costs for buying the
technology needed.
services development in Romania comparative to
the other countries worldwide, what are the main In the present, the
supervisors of the financial-
factors that influence the actual development in banking market have
to focus their attention on the
Romania and how can be the risks implied better impact of e-banking
on traditional banks, focusing on
administrate? things like:
Strategy
-
The research methodology used here is mainly Client’s lev
el
-
descriptive and analytical. We presented the results Finances a
nd expenses
-
of the studies realized by the Romanian Minister of Expenses w
ith the commercial ad
-
Communications and Information Technology in Profit mar
gins.
-
this area, we analyzed and interpret the available
data and we proposed some solutions for a better In England, for exam
ple, this market is supervised by
use of the electronic banking services and for Financial Supervisor
y Authority - FSA. In the view
reducing the risks implied by those services. of performing bankin
g supervision, a banking law
was adopted and afte
r that a new legislation
Second section describes the impact of the (Financial Services
and Markets Bill) offers in plus
electronic banking services on the traditional ones legislative frame th
rough which it promotes financial
and the third part describes the access canals used system for a better
understanding. At the same time,
by e-banking. The fourth part presents the law promotes the nec
essity of protecting the client; it
management and control risks in the e-banking area offers, at the same
time, the base for achieving the
and the fifth section is about the types of electronic financial-banking ed
ucation of the client, which
banking services in Romania and worldwide. represents a major i
nstrument in the battle with the
Section 6 shows the advantages offered to banks client’s risks (Cetina
, 2005).
and customers and section 7 concludes.
And so, in England,
there is no special regime for e-
2. The impact of electronic banking on banking activity and
the supervisors consider that
traditional banking services they can authorize a
ny new activity for e-banking
Before deepen e-banking services, we must think at that satisfies the m
inimum standards of banking
the revolution that e-banking could create in the discretion. Basel Co
mmittee E-banking Group
future. Actually, when it’s used “e”, we think at considers that “they have to
realize the international
everything that is electronic, wherever it’s the surveillance of the en
tire community through the
Internet, television, telephone or all at the same distribution of a se
t of lines with a view to electronic
time. banking“.
There is necessary t
o offer an intern settlement
package for supporti
ng the client’s and the bank’s
Communications of the IBIMA
Volume 8, 2009 ISSN: 1943-7765
44 Development of the electronic banking services in Ro
mania
education. In a global way, this kind of guide
would participate at realizing international At the moment of regi
stration on e-bank, using
electronic services,
the client can get, in some cases,
cooperation and would be a fundament for
coherence surveillance of e-banking activity. beside username and p
assword, an application (on a
CD, through E-mail or
downloaded and installed
So it would facilitate the achievement of automatically at the
first connection on the bank’s
international activity of e-banking through the rise website), that is bei
ng installed on your PC and
of client’s confident in healthy banks that have as which you can have acce
ss at the offered services.
base different regimes of surveillance and
settlement. Electronic banking se
rvices can be obtained through
a mobile phone (Mobil
e Banking) in two modalities:
The group has identified the next problems on • Using TEXT messa
ges
which it should focus their activity in the future: • Accessing the In
ternet through WAR
Authorization
- protocol.
Prudential standards
-
Transparency
- It can be used specia
l mobile phones with the SIM
 Professional secret
- (Subscriber Identity
Module) chip extended as a
Money washing function, resulted af
ter collaborating between bank
-
and operator of mobil
e telephony which provides the
3. Access channels used by e-banking machine ( with the ex
tended SIM) or normal mobile
E-baking’s remote access can be done within many phones that don’t require
any modification. In order
access channels, being based on fix phone, mobile to use Text messages
we must dial up a special
phone and on the personal computer. Through mobile number of the
bank and for the WAP access
these channels holds the dialog between clients and we must write an Inte
rnet addressee of the bank’s site
banking service and are received messages and or of a mobile operat
or server, which is connected
facts provided by the service. with the bank.
The easiest and at the same time the most general Usually, through Text
messages are being received
access channel at electronic banking services is different information
referring at the balance on
through fix or mobile phone, through which the current account and o
n the history of the last
client accesses a special bank number that is transactions, and thr
ough WAP access are being
answered by a human operator from the Call received sites with t
he same information at which it
Center of the bank – this is a channel with vocal can be added general ba
nking information, viewing
access. the errands, rates, c
urrent appreciation of currency,
the bank’s ATM network
and others.
The client identifies himself, the operator looks
him up in the date base and verifies his identity, 4. Establishment, man
agement and control risks
after which the client asks the desired service: in the e-banking area
information or funds transfers and payments, which Determining risk is a
continuous process which
the operator executes immediately using the access involves the followin
g three stages:
he has at the central data base of SBI’s of the bank. The bank is co
mmitted in an analytical
-
process of i
dentifying the risks and where
To obtain the services of e-banking through your possible, of
commensuration them. In case
home computer you can choose between two risks can’t
be commeasure, the
methods: administrati
on of the bank settles the
Wiring the PC to the Internet , using a potential ri
sks than could appear, steps to
navigator and accessing a specialized page from the follow in th
ese cases and the impact they
bank’s site could have ove
r the bank.
Wiring the PC that has a modem and an The settleme
nt of the risk means for the
-
application provided by the bank, directly (through bank the det
ermination of the bank
dial-up) at the bank’s server (PC Banking). tolerance, thi
ng that means the settlement of
loses that t
he bank can afford in case of
This last method is less used in the present but is some unexpec
ted events.
more secure and it addresses especially to The administ
ration of the bank can compare
-
companies. the toleranc
e of the risk with the settled
magnitude in
case of lose to see if that risk
Internet Banking is being used ore and more often can be toler
ated or not.
especially because it can take place in conditions of
high safeness and can offer the complete range of After setting the ris
ks and their tolerance, the
banking services. administration of the
bank must administrate and
Communications of the IBIMA
Volume 8, 2009 ISSN: 1943-7765
Magdalena Rădulescu and Luminita Serbanescu
45
control them. This part of the risk management
includes activities like (Balaure, 2000): In order to reduce t
he risks listed it is required for all
“e” activities to regula
te, establishing an adequate
Coordinating internal
infrastructure and a
n indication of which must
communication,
authorize and overse
e these activities. Like any trade,
Introduction of protection measures
e-commerce needs a s
pecific infrastructure.
against risks from the outside,
Control and management of them,
In this case, it con
sists of three elements: thermal
Instruction of the clients in using the
infrastructure, inte
rface with the essential
services etc.
components of classi
cal and specific legal system.
Banks increase their ability in monitoring and Thermal in
frastructure consists of the
hardware,
software and network
managing internal risks in any activity when all
these procedures are established by and are to grasp communicat
ions. It actually is and which
the entire staff.. resulted i
n the emergence and development
of electro
nic commerce.
The management and control risks include: It is also
necessary to interface with the
major syst
ems of classical trade. The key
Politics and security measures .Security
-
element is
the bank, because any
represents a combination of systems,
commercial
operation is a means of money.
practical applications and intern control ,
The insert
of a bank in an electronic trading
used to take cover of the integrity,
commerce i
mplies a connection between the
originality and confidential of the dates
bank and t
he user, through which can be
and operational procedures. Security
carried ou
t operations in real time.
politics announce the intention of the
To create
the legal framework for the
firm’s management to back up the
member cou
ntries of the European
information’s security, gives an
Community,
the European Parliament
explication about organizing the security
adopted a
directive that regulates this
of a bank, specifies the main directions
specific a
rea of interest, current exchange
that define the tolerance of a security risk
rates, the
network of ATM of the bank and
in a bank. Policies outlines the
other.
responsibilities for moderation, and
implement measures to strengthen security
information, it may establish procedures 5. Types of electron
ic banking services in the
for assessing the results of policy, to world and in Romania
strengthen disciplinary measures and for
a. Mobile banking
reporting security violations. Security
Mobile banking is a
service which permits accessing
measures include encryption, pass
 on more financial-ba
nking information using only
wording, detect viruses, etc.
the cell phone, with
out going to the bank, at a banc
Internal communication. Leadership must
-
mat or using the Int
ernet, at day and any hour. Some
communicate with staff Attributions key
of the Romanian bank
s offer the option of obtaining
as the bank electronic systems and
some information abo
ut card account.
electronic money intended to support the
general goals of the bank. At the same
More specific you ca
n find out the sum of money on
time, technical staff must clearly
your card, the last
50 transactions that have been
communicate how management systems
made using the payme
nt instrument, there can be
are designed to work, the strengths and
realized funds trans
fers between debit cards.
weaknesses of the system. To ensure
adequate internal communications, all
Mobile Banking is a
service that allows access to
procedures must be provided in writing. In
more financial infor
mation using only your mobile
order to limit operational risk, the need to
phone, without going
to the bank, at an ATM or
adopt a common policy on continuing
using the Internet,
no matter day or hour.
education of personnel with knowledge of
Specifically, you ca
n find the amount of money on
technological novelties. Evaluating
the card, last five
transactions that were carried out
products and services before they can be
with the help of pay
ment may be made transfers of
placed on a large scale, may limit the risks
funds between accoun
ts, debit card, receive alerts for
of operational and reputation.
all transactions con
ducted at bank machines and
magazine. Mobile ban
king services can be accessed
Testing validates that the equipment and systems
through messages wri
tten protocol or WAP,
and produce desired results. Pilot programs or
depending on the typ
e of terminal that we possess the
prototypes can also aid in the development of new
user. Access to info
rmation on the account can be
IT applications.
Communications of the IBIMA
Volume 8, 2009 ISSN: 1943-7765
46 Development of the electronic banking services in Ro
mania
Especially, for elect
ronic banking services, the risk
obtained only from the telephone number that was
associated to the pro
duct and the electronic
stated in the signed contract for this service with
distribution channel
is larger than consumer goods
the bank, and access to services-type browsing, the
and so it increases t
he importance of such innovating
user must be authenticated by user name and
character. Ensuring s
ecurity and confidentiality must
password.
be assured before any
banking activity which regards
Mobile phones of tomorrow wouldn’t be just
important information
take place.
simple banking terminals; they tend to become a
complete centre of communication, with functions
Of all the factors me
ntioned above, the relative
that could replace cash transactions.
advantage, compatibil
ity, testing possibility and
observance are positi
vely correlated to adopting
As an Internet access portal, mobile phones are
innovation, while the
complexity and risk are
destined to boom the way in which banking
negatively correlated
.
transactions shall take place.
Relative advantage re
fers to the extent to which an
Using new technologies, safer and easier to use,
innovation is perceiv
ed as being better than the idea
mobile banking becomes reality and WAP
of a product that it
replaces. The measure of the
(Wireless Access Protocol) is the key to this reality.
relative advantage is
often expressed through
Still, of all the commercial applications which had
 economic profitabilit
y, social prestige, saving time
become possible, the attention is focused on mobile
and effort, immediate
reword or decrease discomfort.
banking.
In the case of Mobile
-Banking relative advantage is
The experts are waiting for mobile terminals to rule
perceived related to
the element of mobility for the
this market, replacing PC s as the main transaction
new medium of distrib
ution (for example, use this
mean. Having the possibility to directly access
service to consumers
while walking on the street).
clients, the new mobile access solution in virtue of
- Complexity-unfoldin
g banking mobile phone is
WAP promises to offer an alternative working
about reverse consume
r’s experience regarding
channel for banks and savings banks.
technology in general
.
-Compatibility refers
to the extent that an innovative
This application shall allow WAP mobile terminals
channel, as the mobil
e phone is compatible with past
owners to sell or buy shares, to check their shares
experience of the ind
ividual, and values seem to have
portfolio, to receive diagrams, news and many
a significant impact
on adopting availability.
others.
-Visibility-describes
the extent to which an
innovation is visible
to other members of the social
The WAP technology (WAP, with its navigation
environment. Intangib
ility of the banking services
micro – programs shall constitute “the mobile
can create some probl
ems, even if in case of Mobile
ticket” for connecting to the Internet. It is already
Banking-discovery, th
e distribution of the service-
possible to learn about stock exchange shares or to
mobile phone - can im
prove the physical evidence
place orders from WAP terminals to the German
innovation.
brokers company Consors) is about to change the
-The possibility of t
esting – the ones that will be
mobile phone into the main commercial instrument
 allowed to experiment
innovation will feel more
of the future.
comfortable with thes
e services and more willing to
adopt. In other words
, if consumers are allowed to try
To support our affirmation, according to which
innovation, the fear
of the unknown and the inability
mobile terminals are the real business instruments,
of use disappear.
are modern mobile banking services, made through
mobile phones.
b. Tele-banking
This service permits
the reception of information,
Regarding the mobile phone number of users, this
has reached 14.900.000 on the 30th of June 2006, necessary from any an
gle, at distance, through
phone. For this is en
ough to phone at informational
which represents a growth with 11,3% compared to
the 31st of December 2005. Consequently the centre of the bank.
mobile phones services penetration rate has
Tele-banking service
gives the following services:
increased, at the same date, with 7 percentage
points compared to the end of 2005 (according to Receiving i
nformation about the current rate
“The of exchange o
f BNM and of the subsidiaries
report regarding the electronic
communications sector within Romania for the 1st of the Bank
.
of January – the 30th of June 2006” published at the Receiving infor
mation about the current
end of 2006 by the National Authority for sold in the
account or about the other days
and of cour
se when receiving a fax.
Communications Regulation).
Communications of the IBIMA
Volume 8, 2009 ISSN: 1943-7765
Magdalena Rădulescu and Luminita Serbanescu
47
Receiving information about banking using mobile phoning
is very high, and the methods
services: about credits, deposits, banking of payment and bankin
g services aren’t so well
cards, transfers with money, services known and used by tho
se people.
payments.
Receiving information about the bank. For the Western Europ
e it has been estimated the
number of users to 49
9.000 this year and for North
Telebanking has entered into force in the 70 s once America – one million u
sers. Services of this type
with the mechanization of payment instructions and will not know too man
y users in these parts of the
sending information regarding accounts current. world, especially bec
ause of the incertitude that they
Within this system the data is changed through files have when it comes to
the security of their personal
transfer regarding credit transfer orders, debit dates (Wenniger, 2004
).
transfer or cheques or through introducing online
transfer instructions. c. Internet banking
The Internet has beco
me a very popular platform of
It is accessible to economic agents who have large distribution in the l
ast years for electronic banking.
payments to make and who have an automatic Electronic banking co
nsumers had been offered an
integrated accountability system, which allows easier access to thei
r accounts 24 hours of 24, seven
them to have an electronic link to the bank and in days a week. Even tho
ugh there is such convenient
this way it is made transfer instructions exchange way, electronic banki
ng adopting rates in most
without using papers. countries had been ve
ry low.
The number of clients who shall make payments It is appreciated tha
t, due to recent Internet progress,
and who shall use phone banking shall reach in electronic banking se
rvices could significantly
2011 to 103,9 million worldwide. For this year, the extend. Decreasing th
e computer prices, together
number of such services users shall only be of 32,9 with Internet service
s quality, of large operational
million. The payment methods made with mobile speed, offered to mor
e accessible prices, through
phones are defined by paying some products or cable or telephone co
nnections; make possible a
services using mobile technology (SMS, wireless fundamental change of
ordering and operating
applications – WAP, etc.). So far, SMS is the most monetary transfers.
popular and dominant payment method, and
Gartner analysts are expecting things not to change The evolution of thes
e services shall depend also on
until 2011. the banks technical a
bility and setting the procedures
to ensure participant
s protection. The distance
Mobile payment methods can bring high material payment instrument of
internet banking type is that
opportunities to couriers and, eventually, to banks, payment instrument ha
ving distance access which is
if they are properly used. based on Internet tec
hnology (World Wide Web) and
on issuers of the inf
ormational systems.
Nevertheless, these payment services are more
suitable for couriers, than for bankers. All the Internet banking repr
esents a package of solutions
same, banks can justify their investments through intended for the remo
te interaction between client
this payment system, if they use mobile services as and bank, which permi
t clients to access their
an extension of the already used channels. At the information to accoun
ts and generate transactions
same time, the Gartner research director noticed through an Internet c
onnection.
that mobile payment method is easier to apply on
emergent markets than developed ones, where they Internet banking is a
service available to all persons,
are seen, especially, as already existent services through whom you can
make banking operations 24
alternative methods. hours a day, seven da
ys a week, from any part of the
world where there is
an Internet connection, offering
Of all the regions worldwide, Asian Pacific area mobility and comfort.
has the most users to mobile payment chapter (28
million in 2008), owning 28% of the total number On international plan
there are at least 2 modes of
of users, revealed the Gartner research. onset of banking serv
ices offered by Internet:
The most important two reasons for which the 1. The model exclusiv
ely through the Internet, in
Asian zone is lieder are the following: which a bank is deplo
ying the activity exclusively
online, without offer
ing classic banking services
• Mobile payment services was launched
within a branch offic
e or an agency. This kind of
recently in this part of the world and so attracts the
institutions can’t be f
ound in the Romanian bank
curiosity of a large number of people;
landscape.
• Some countries are very developed in Asia,
like China or India, where the number of people
Communications of the IBIMA
Volume 8, 2009 ISSN: 1943-7765
48 Development of the electronic banking services in Ro
mania
2. The model of traditional banks, that offer’s to banks. Internet banking
is for both individuals and
there clients classic services and also electronic legal entities as an
instrument of payment without the
cash, thing that help
s customers to save time and
ones with remote access.
money because they no
longer have to go to the bank
and can perform their
normal operations from the
The main things that clients can do through the
help of the instruments of Internet Banking are: comfort of their home
office from any computer 24
hours a day in the co
untry and abroad. Of the three
The possibility of opening accounts and
-
distribution channels
of electronic banking services,
credit cards;
 Internet Banking will
have the largest share in the
The possibility of transferring funds
-
future, followed by M
obile Banking due to
between the accounts of the client (card,
increasing number of
mobile users (Vasilache, 2004).
deposits, current accounts);
The possibility of realizing payments in
-
Nevertheless, the ban
k branch, especially in
any currency using, inclusive the
Romania, is still the
main “connection way” between
exchange;
banks and their clien
ts, newer distribution channels
Finding out the details about the situation
-
such as internet bank
ing or mobile banking being far
of the personal accounts.
from being well appro
ached by clients. This is
actually the result o
f a market research made by GFK
To ensure a high level of safety, Internet-type
Romania and according
to which internet banking is
services are developed on infrastructure that
one of the most reduc
ed used of financial services
respects the international standard of safety on
within Romania.
information. From the moment of connecting the
authorized clients, any date exchange is made
Only 1% of the users
of financial services within
under a secure protocol, using keys and encryption
Romania currently use
internet banking. Most of the
algorithms. Some banks available to customers’
users of financial se
rvices use current accounts in lei
special devices physic security attached to the
(39,54%), term deposi
ts (29,77%) and cards for
computers.
taking cash from ATM
s (27,36%). According to the
quoted source, per en
semble of the over 15 years
The authentication of a client can be achieved on
population, 64,41% of
the persons don t use any
levels:
financial service, 14
% use current accounts, 10,5% -
User name and password
-
term deposits and 9,7
% - cards for taking cash from
Digital certificates (for example the
-
ATM.
electronic signature used by some
commercial banks)
Still, near the bank
branch, an important role in
Hardware tokens (strong authentication
-
promoting bank produc
ts and services, but also for
mechanisms).
making transactions,
shall have, according to the
market researches, au
tomatic banks or call – centers
Internet banking systems besides the fact that can
(phone lines where cl
ients can get information
be accessed from any corner of the world, provided
regarding the bank of
fers and can make banking
you have an internet connection, does not require
operations). Regardin
g the bank s distribution
relocation specialists bank for the connection and
channels, we think th
at the main shall be the
assembly but only the existence of a personal
branches and agencies
network. And internationally,
computer that the client can use.
after a few years in
which it had been thought that
the Internet shall re
place the network, the market
Transactions take place online and in real time
reconsidered the role
of bank units.
enjoying the same degree of protection granted by
the bank s own system. Security of transactions
6. Advantages offered
to banks and customers
conducted via the Internet is a main aspect that
should interest the client. At Banc Post and HVB-
Advantages offered to
banks:
Ţiriac Bank the client has provided an additional
• Transactions an
d information are protected
security device named Digipass, its identification is
at the high
est security standards currently.
based on the following dates: Pin code, name of the
client and a bidirectional authentication assured by • Transactions ar
e done in real time.
an exchange of key security between the bank and • Almost
unlimited possibilities for
customer. expansion:
Interface type Web Services, that
allows auto
matic access to Internet Banking
Another security measure is valid for a single functions o
f accounting applications, ERP
session of the password recognition, a new and portals
for large customers, e-commerce
connection being generated to another sequence of application
s for on-line sellers, electronic
passwords. In the vast majority of internet banking transfer of
money etc.
services for individuals are offered at no charge by
Communications of the IBIMA
Volume 8, 2009 ISSN: 1943-7765
Magdalena Rădulescu and Luminita Serbanescu
49
Internet bank
ing information can be
May be established packages of services •
•
exported in s
everal types of files: PDF,
depending on the category of clients such
XLS, and HTML
.
as: individuals and legal entities.
Ability to im
port payment orders simple and
System is implemented, heard and •
•
direct from T
reasury files: XLS or
functional now.
predefined DB
F.
Full interoperability.
•
Avoid stress,
crowding and bureaucracy.
System is configurable and allows for •
•
Increase busi
ness customers by making
easy operation with the existing central •
online paymen
ts to suppliers on time and
system (core-banking).
with a good o
rganization funds.
System is configurable and allows
•
Information a
ccess even in the moment
operation in banking load-technology at •
where is need
ed, by consulting the
 any level: server web, placation servers or
transactions
in a real time.
date base server.
Decrease the
time of disconnection between
Implementation support for negotiating •
•
clients and b
eneficiaries of payments as a
the exchange rate exceeding a certain
result of tru
st between the partners and
value, submitting an application for credit,
managers can
focus on business without
exchanging messages between client and
take care pay
ments and incomes.
bank operator and customer notification of
the result of analysis of demand for credit.
Security at the highes
t level:
Low cost of implementation and maintenance • The solution perm
its to select items for
(TCO) (Odobescu, 2003): customer auth
entication based on costs.
Besides name
and password we can opt for
• Operational costs dedicated to processing
eToken USB wi
th digital certificate device,
transactions are reduced and workers are
only for digi
tal certificates or token
credited reduced operations for the benefit
hardware VASC
O/DIGIPASS devices.
of customers calling to them.
• Security is incre
ased through multi-level
• Licensing policy and gradual
architecture
that allows security levels
implementation, Internet Banking
between the f
irewall equipment.
Licenses can be used in an outsourcing
regime, without initial costs, based on a • Ensure non-repudi
ate, authenticity and
service contract. confidentiali
ty through digital signature
transactions
transmitted by clients.
• The solution is scalable. To increase
processing capacity is sufficient to add • The communication
client-bank is crepitated
additional servers. using SSL 3.0
128 bits protocol.
• Bank-client authe
ntication is done via
Advantages offered to customers: digital certi
ficates issued by the bank and
• Reducing costs through the benefit of recognized, and
for the exchange of keys is
lower commissions and use the time used for RSA
encryption algorithm with key
gained in carrying out financial of 1024 bits.
operations. • Communication mes
sage is encrypted using
• Access customers may be from any the 3DES algori
thm with key of 128 bits.
location with Internet access both in the • USB eToken or DIG
IPASS devices are
country and abroad. protected by
a PIN code
• The product has a friendly interface with • Access is based on
a username and a
the customer that makes it very easy to password for
access
use.
• Offers the possibility of task deployments Technical user requireme
nts are minimal and
in an accountant department depending on involve:
components of the company. • a PC min
imum Pentium II 450
• There is the possibility of consignment MHz,
64MB RAM.
documents of more authorized people • Internet
access by LAN network or
before making itself a transaction. a m
odem and telephone line
• Large companies can manage multiple • Windows 98
or better, Internet
branches or subsidiaries. Exp
lorer 6.0 or better.
• Documents obtained after the transactions
are available in PDF or HTML format can Previous experience wi
th technology, in particular on
be sent to clients via e-mail. computers, is an impor
tant factor of adopting
the Internet Banking.
The consumer experience on
Communications of the IBIMA
Volume 8, 2009 ISSN: 1943-7765
50 Development of the electronic banking services in Ro
mania
banking activities, a
long with continuing the process
how technology is greatly to better understand new
of measuring actual p
erformance.
technologies and ramifications of themselves.
-consider t
he effect that the legal provisions
conduct e-banking can
have on risk exposures, as
7. Conclusions
well as proper manage
ment of these risks.
E-banking can be offered, mainly, through two
ways. First, an existing bank that has physically
One of the most impor
tant challenges for Internet
offices, can establish a website to offer online and
Banking refers to con
sumers’ security. Insurance
electronic banking services to its customers or
necessity has proven
to be one of the biggest barriers
through Internet. One of the main problems that e-
in adopting Internet
Banking. Demographic factors
banking is facing is the security. Without clients’
influence was conside
red to be significant for the
confidence in the security of such services, they do
adoption of the Inter
net Banking. Sex person is also
not want to use a public network like the Internet,
considered as an impo
rtant factor of adopting
and to view financial information online and to
Internet Banking. Acc
ording to the studies, the
perform financial transactions. Some security
adoption service is d
ominated by male.
threats are theft and violating individual
information privacy. Banks using e-banking is
Developing a strong I
nternet and mobile
offering more ways to ensure a high level of
telecommunications di
d not shun, fortunately,
security (Golosoiu, 2003):
Romania, such as a se
ries of industries can benefit
- identifying and authentication: using your
from major new techno
logies. Thus, banking
username and password to access accounts;
industry has come in
recent years with a new market:
- coding: even if the information is intercepted, the
the launch of electro
nic banking services, an
hacker was not able to view a firewall (barriers to
alternative to classi
c banking services, which involve
protect their servers and databases of banks).
the customer at the b
ank counter. Electronic banking
services are divided
into three categories: Internet
In general, electronic banking services can be
Banking, Mobile and T
ele-banking Banking. These
classified into two categories: providing
work permit realizing
 of banking transactions using
information and making transfers of funds and
computers connected t
o the Internet (Internet
payment.
Banking) or phone (Mo
bile Banking).
a) The bank provided the bank are electronic
Thus, through the Int
ernet Banking, the user has the
information on the bank account and financial
option of doing banki
ng operations in lei and/or
information-general banking, such as the exchange
foreign currency, onl
ine, from a distance. In addition,
rate, interests or commissions current network of
through an informatic
s application provided by the
ATMs, the general utility. Information on account
bank, can perform a s
eries of banking transactions
refers to the current history of transactions made in
without the need move
ment from bank headquarters.
account statements of account status. Using
Through mobile bankin
g, banks offer customers
Internet Banking service is influenced by reference
financial and banking
information, private or public,
groups of consumers (family, friends, etc.). Even if
or the opportunity to
make some transactions,
you use this service initiation was determined by a
directly from the mob
ile phone. This service is
specific group of reference, its continued use
provided by the bank
in partnership with one or more
depends on other factors, mainly consumer
telecommunications op
erators to provide mobile
perception of the technology.
stone Romania (Orange
, Conenex and Zapp).
b) Transfers of funds in the account may be inter-
The number of users o
f payment instruments with
banking transfers (the receiver is in the same bank
remote access doubled
during the year, a Ministry of
account). Payments ordered may be made by an
Communications and In
formation Technology
interchange (between banking clients), by a bank or
(MCIT). Of the 39 ban
ks active on the Romanian
another by the Treasury, in the domestic currency
market, 21 available
to customers 28 instruments
or in other foreign currency. So it can be ordered
Payment with remote a
ccess, 14 of which are
the sale or purchase the foreign currency. A
solutions for Interne
t Banking, 12 Home Banking
company can order the wages to its employees
and Mobile Banking 2
received opinion in
from an employee of the company to a list of
compliance with the o
rder 218/2004, following that
providers of employees’ accounts.
on the basis of the s
ame legal act be issued notices to
10 other Such solutio
n after evaluating the
Even if the e-banking activity is risky, there are
documentation submitt
ed. Over 2 billion euros and
also opportunities such as tax benefits and potential
over 230,000 billion
lei were traded by banks
customers, banks and for those regulating the field.
instruments of paymen
t online. In present, there are
From the banks’ viewpoint, they should:
almost 28,000 users o
f at least one type instruments
-have a clear strategy and well distributed
Internet banking, hom
e banking or mobile banking
to kick off the top and to consider the effects of e-
Communications of the IBIMA
Volume 8, 2009 ISSN: 1943-7765
Magdalena Rădulescu and Luminita Serbanescu
51
front of 14,000 in the second quarter of last year, [10]. Order of Ministry
of Communication and
said the Minister of Communications and Technology no. 218 on 1
4th June 2004 on the
Information Technology. procedure for approval
of payment instruments with
remote access, such as
Internet banking applications,
The whole range of instruments of payment to the home-banking or mobile-
banking.
remote allow the user direct access to its funds, [11]. National Bank of
Romania-regulation number
making payment or transfer of funds, with these 4/2002 on transactions
conducted through the
instruments can be achieved information regarding instruments of electron
ic payment and relations
accounts and operations made by the user. between participants in
these transactions.
[12]. www.mcti.ro
[13]. www.bnro.ro
8. References
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pp.204-300. [17]. www.fsa.gov.uk
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[3]. Cetina, I., Financial Banking Marketing,
Economic Publishing House, Bucharest, 2005, pp. Copyright © 2009 by the I
nternational Business
138-156. Information Management
Association (IBIMA). All
[4]. Danila.,N., Retail Banking payment, Expert rights reserved. Author
s retain copyright for their
Publishing House, Bucharest, 2004, pp. 43-89.
manuscripts and provide
this journal with a
[5]. Golosoiu-Georgescu Ligia, Business of
publication permission
agreement as a part of IBIMA
banking, ASE Publishing House, Bucharest, 2002,
copyright agreement. IB
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pp. 127-165.
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[6]. Golosoiu-Georgescu L., Means, methods and
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Bucharest, 2003, pp. 96-112. as and any errors are t
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Communications of the IBIMA
Volume 8, 2009 ISSN: 1943-7765