History Of Internet Banking

information about the bank products and services on a stand-alone server. The risk of this banking system is relatively low, because informational systems typically have no path between the server and the bank’s internal network. Though risk to a bank is relatively low, the server or website may be vulnerable to alternation. Appropriate controls therefore must be in place to prevent unauthorized alternations to the bank’s server or website. This level of internet banking can be provided by the bank or outsourced.

 Communication: Communicative internet banking system allows some interaction between the bank’s systems and the customer. But the interaction may be limited to electronic mail, account inquiry, loan applications, or static file updates.

Since a path typically exists between the server and the bank’s or outsourcer’s internal network. This is the highest risk architecture and must have the strongest controls. Customer transaction can include accessing accounts, paying bills, transferring funds, etc.

VIII. GROWTH OF INTERNET BANKING

Competitive cost, customer service, and demographic considerations are the factors for motivating banks to evaluate their technology and internet banking strategies. According to Sarma and Singh(, 2010) the growth of internet banking has been increased dramatically during the last few years due to the following reasons.

 Competition: Studies show that competition is the key driving force behind increasing use of internet banking, ranking ahead of cost reduction and revenue enhancement, in second and third place respectively. Banks use internet banking as a way to keep existing customers and attract new ones to the

Some customers will rely on traditional branches to conduct their banking business. For many, this is the most comfortable way for them to transact their banking business. Those customers place a premium on person-to-person contact. Other customers are early adopters of new technologies that arrive in the marketplace. These customers were the first to obtain PCs and the first to employ them in conducting their banking business. The demographics of banking customers will continue to change. The challenge to national banks is to understand their customer base and find the right mix of delivery channels to deliver products and services profitably to their various market segments.

IX. SECURITY THREATS WITH INTERNET BANKING

There are several types of on line attacks. So the banks need to guard against these attacks. The object of an attack is different. Attackers may try to exploit know vulnerabilities in particular operating systems. According to the Singh Brar (, 2012) the attacks can categorize into three main groups such as remote, local, and hybrid attacks

A. Remote