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About Internet Banking | AIB Internet banking | Advantages Disadvantages for Internet Banking | Online Banking

Internet Banking - Online Banking
Note: AIB Internet Banking refers to the internet banking side of AIB (Allied Irish Banks)


Online banking (or Internet banking) allows customers to conduct financial transactions on a secure website operated by their retail or virtual bank, credit union or building society.

Online Banking solutions have many features and capabilities in common, but traditionally also have some that are application specific.

 

The common features fall broadly into several categories:

  • Transactional (e.g., performing a financial transaction such as an account to account transfer, paying a bill, wire transfer... and applications... apply for a loan, new account, etc.)

  • Electronic bill presentment and payment - EBPP

  • Funds transfer between a customer's own checking and savings accounts, or to another customer's account

  • Investment purchase or sale

  • Loan applications and transactions, such as repayments

  • Non-transactional (e.g., online statements, check links, cobrowsing, chat)

  • Bank statements

Financial Institution Administration - features allowing the financial institution to manage the online experience of their end users

ASP/Hosting Administration - features allowing the hosting company to administer the solution across financial institutions

 

Features commonly unique to business banking include

  • Support of multiple users having varying levels of authority

  • Transaction approval process

  • Wire transfer

 

Features commonly unique to Internet banking include

  • Personal financial management support, such as importing data into a personal finance program such as Quicken, Microsoft Money or TurboTax. Some online banking platforms support account aggregation to allow the customers to monitor all of their accounts in one place whether they are with their main bank or with other institutions...

Protection through single password authentication, as is the case in most secure Internet shopping sites, is not considered secure enough for personal online banking applications in some countries. Basically there exist two different security methods for online banking.

The PIN/TAN system where the PIN represents a password, used for the login and TANs representing one-time passwords to authenticate transactions. TANs can be distributed in different ways, the most popular one is to send a list of TANs to the online banking user by postal letter. The most secure way of using TANs is to generate them by need using a security token. These token generated TANs depend on the time and a unique secret, stored in the security token (this is called two-factor authentication or 2FA). Usually online banking with PIN/TAN is done via a web browser using SSL secured connections, so that there is no additional encryption needed.

Signature based online banking where all transactions are signed and encrypted digitally. The Keys for the signature generation and encryption can be stored on smartcards or any memory medium, depending on the concrete implementation.
 

About Internet Banking | AIB Internet banking | Advantages Disadvantages for Internet Banking | Online Banking

Sources: Wikipedia and other public available articles. Site owner and contact info: www.crediblewebsites.com