E-BANKING: RISKS AND SECURITY MEASURES
International Journal of Business and Administration Research Review
Globalization has brought about sweeping changes in all sectors of the Indian economy. The banking sector which occupies a prime position both in the national and global economy has also seen tremendous changes in the last few decades. Electronic banking the result of technological advancement is a major change that has affected the lives of ordinary citizens. Electronic banking facilitates bank customers to get access of their accounts and general information on bank products and services in
... w seconds. E-banking economizes time, because it allows to the user to access their bank account from anywhere throughout the day. However, one of the main concerns of E-banking is security and this concern with security and fear of fraud deters the extensive use of this type of banking. Without total confidence in security, customers are unwilling to use a public network, such as the internet, to view their financial information online and conduct financial transactions. This is unfortunate because this system has a number of benefits for all especially in a vast developing country like India. This implies that banks must concentrate on improving the security features of their E-banking services so as to give it wider acceptability. This paper discusses some of the important risks associated with E-banking and the security measures to be adopted by banks to reduce risks and encourage the wider acceptance and use of E-banking. INTRODUCTION Globalization has brought about sweeping changes in all sectors of the Indian economy. The banking sector which occupies a prime position both in the national and global economy has also seen tremendous changes in the last few decades. These changes have been driven by a number of internal and external forces. Of the external forces, technology, in particular the Internet is a key driver of these changes. Electronic bankingalso referred as internet banking, online banking, and virtual banking is the result of this technological advancement and this system of banking has affected the lives of ordinary citizens.The range of e-banking services is likely to increase in the future.Banks race against each other in bringing the latest technology for the benefit of their customers and themselves (Sudeep, 2007). Numerous factors including competitive cost, customer service, and demographic considerations are motivating banks to evaluate their technology and assess their e-commerce and internet banking strategies. However, the Internet has not only generated previously non-existent opportunities for cost effective, all time available financial services, it has also increased the significance of a number of risks which did not exist or were not significant in the past.This paper analyses the risks involved and suggests ways to reduce them.