a) In order for customers to use online banking services, they will require to have for example a personal computer and an Internet connection. Their personal computer becomes their virtual banker who will assist them in their banking errands.
(i) Show two examples of transactional e-banking services that customers can conduct online.
(ii) Name two other electronic devices that the customer can use to access online banking services.
b) In what ways does e-banking differ from traditional banking in terms of the services they offer? Provide suitable examples where necessary to support your answer.
c) One of the main concerns of e-banking is security. Without great confidence in security, customers are unwilling to use a public network, such as the internet, to view their financial information online and conduct financial transaction.
(i) Outline some of the security threats that can influence customers in using e-banking services.
(ii) What are the methods employed by banks to make sure a high level of security when delivering e-banking services?
d) On strategic risk e-banking is relatively new and, as a result, there may be a lack of understanding among senior management about its potential and implications. Assess the impact of strategic risk on e-banking .
e) Operational risk is the risk of direct or indirect loss resulting from inadequate or failed internal processes, people and systems or from external events. One of the main causes of operational risk concerns management information systems. Explain how management information systems directly relate to operational risk.
f) E-banking has unique characteristics that can increase an institution's overall risk profile and the level of risks related with traditional financial services particularly strategic, operational, legal and reputational risks. Outline these unique e-banking characteristics