What Is Electronic Banking?

According to the Industrial and Commercial Bank of China's Measures for the Management of Electronic Banking Services, electronic banking refers to the way in which the Bank provides customers with communication channels or open public networks that are open to the public, and special networks established for specific self-service facilities or customers. Out-of-counter financial services provided. It mainly includes online banking, telephone banking, mobile banking, self-service banking, and other off-the-counter businesses.

online bank

According to the Industrial and Commercial Bank of China's Measures for the Management of Electronic Banking Services, electronic banking refers to the way in which the Bank provides customers with communication channels or open public networks that are open to the public, and special networks established for specific self-service facilities or customers Out-of-counter financial services provided. It mainly includes online banking, telephone banking, mobile banking, self-service banking, and other off-the-counter businesses.
Chinese name
online bank
Text
"Administrative Measures for Electronic Banking",
Unit
Online
In April 1997, China Merchants Bank
online bank
Formally established its own website and became the first domestic bank to go online. In February 1998, "One Netcom" was launched. On September 6, 1999, China Merchants Bank signed a comprehensive e-commerce cooperation agreement with the General Administration of Posts and Telecommunications of China, China Southern Airlines and Sina.com in Beijing. So far, China Merchants Bank has taken the lead in launching online banking business nationwide. In March 2001, China Merchants Bank also launched the personal banking professional version v2.0 of the world's most advanced level of online banking.
In June 1999, Bank of China officially launched a series of online banking products. On May 15, 2000, the Bank of China took the lead in launching the business of providing online banking services via cable TV-"Home Banking". It is based on the cable television video broadband network, and uses televisions and set-top boxes as client terminals to implement networking and processing. Bank business. The "Home Bank" service target mainly includes users who have used the Bank of China Telephone Bank in Guangzhou area and those who have applied for Guangdong Video Broadband Network. The next step will be gradually extended to users in other regions. "Home Bank" has been gradually established by enterprises
E-bank related books
A more complete and mature online banking system consisting of banks, personal banks, online securities, online malls, and online payments.
On August 4, 1999, China Construction Bank officially launched online banking services. CCB's online banking services use international standard authentication systems and the most advanced secure encryption technology to ensure the security of online transactions. CCB's first batch of cities to open online banking services are Beijing and Guangzhou. It is expected that Shenzhen and Shanghai will also open online banking services. As of the end of June 2001, CCB's online banking has covered 115 large and medium-sized cities in China, and its online banking customers have reached 50,000. It has soared by 40,000 in the first half of the year, a nearly forty-fold increase over the same period in 2000. The monthly average number of transactions and the transaction amount were 56,000 and 24 million yuan, respectively, both of which increased ten times compared with the same period in 2000. As of the end of December 2007, the bank's e-banking customers reached 70.7 million; e-banking transactions amounted to nearly 120 trillion yuan; transaction volume was nearly 1.9 billion; business income reached 500 million yuan. In 2007, CCB's electronic banking products were highly evaluated by users in major domestic well-known media, with outstanding performance. Online banking has won the "2007 China Online Banking Evaluation: Best User Experience Award", and mobile banking ranked first in the "2007 China Banking Industry Outstanding Innovation Award".
Although the banks were affected by the economic turmoil to a certain extent in 2008-2009, the size of the online banking market continued to grow rapidly, and the number of users who opened accounts continued to increase. The online business transaction volume generally exceeded 20% of the total business, and the transaction volume increased significantly. As the number of users grows, this also shows to a certain extent that individuals and businesses are increasingly using online services to replace traditional counter channels.
Industrial and Commercial Bank of China, which has 8.1 million industrial and commercial enterprise accounts, maintains long-term good relations of cooperation with more than 40,000 enterprises, and accounts for more than 50% of the nation's financial system. In order to adapt to the booming development of e-commerce, in February 2000 Beijing opened on the 1st
ICBC Electronic Bank
, Shanghai, Tianjin, Guangzhou and other areas of online banking business. On June 10, the same year, ICBC announced the opening of online banking services in 27 cities including Shenzhen and Xiamen. So far, ICBC has launched online banking services in 31 cities across the country.
5.Agricultural Bank of China
Agricultural Bank of China started late in the construction of online banking, but has also achieved zero breakthroughs. In May 2000, the Agricultural Bank of China's Guangdong Branch established a new business brand, "Online Freelancer", with home, corporate, and government access as entry points. At the same time, Guangdong Agricultural Bank pioneered a new type of financial service-"Direct Internet Access with Bank Account", which implements real-time deduction of Internet access fees, bringing great convenience to customers using online financial services. On December 18, 2000, the Agricultural Bank of Shanghai launched 95599 online banking. There are currently three parts of its service functions. One is business service functions; the other is value-added service functions; the third is information service functions. Business functions include automatic voice services, manual agent services, online banking services and fax services. At that time, inquiry services, loss reporting services, transfer services, information consulting services, notification services, complaints, suggestions, and bank transfers had been implemented. The payment of fees and foreign exchange trading business arrangements were developed in the second phase. The integrated service provided by 95599 Online Bank not only reflects the values of ABC's "market-oriented, customer-centric, and technology-based" value, but also marks the bank's financial electronicization process has entered a brand-new development stage.
Large gap compared with payment systems in developed western countries
in
online bank
In the West, the online banking business volume is already 10% of the traditional banking business volume.
There are more than a dozen online users of financial institutions in the United States and Canada. In the United States, about 4.5 million households use the Internet's online banking function or online bill payment function at least once a month. This number will rise to 33.5 million by 2005, accounting for 31% of the total number of American households.
Differences between China and the US financial environment
There are just two or three of the most popular credit cards in the United States and the world: Visa, Master, and AmericanExpress. There are dozens of commercial banks in the United States, but these are the types of credit cards that can be issued. The method for clearing funds between the card-issuing bank and the acquiring bank is as follows: the credit card acceptance terminal of each acquiring bank is interconnected with its own transaction processing host, and the commercial bank transaction processing host is connected to each type of credit card clearing through the three credit card clearing networks.
online bank
The clearing host in the calculation center. According to international practice, Visa commercial credit cards issued by any commercial bank can be used worldwide; acquiring banks do not have to worry about any problems with funds transfer. This financial environment greatly facilitates the implementation of e-commerce businesses that span time and space. Such e-commerce is not regional, but has global characteristics.
The difficulty of clearing funds between Chinese commercial banks can be described as "warlord melee and local separatism."
First, there are hundreds of credit cards and debit cards issued by various commercial banks and financial cards issued jointly by banks and enterprises. Each type of bank card can only be purchased at the store where the card-issuing bank has an account. To accept credit cards issued by other banks, the online store must be directly connected to the bank's transaction processing host. This leaves the problem of liquidation of funds that should be resolved between commercial banks to merchants, and complicates the simple technical problems artificially.
Secondly, due to historical reasons and obstacles in the distribution of benefits, the liquidation of funds between regional branches of commercial banks is not possible, so that e-commerce payments can only be liquidated within a single regional bank.
For various reasons, the People's Bank of China set up credit card network companies in several large cities to solve the problem of fund settlement between different commercial banks in the same city. In this way, it is more difficult to spend credit cards in other places, and such credit card network companies have made bank clearing operations an authentic local segregation.
So far, e-commerce projects introduced in China have such limitations without exception, making e-commerce's superiority across time and space disappear. Don't say that like Visa credit cards, which are universal in the world, even Chinese credit cards that are universal in the country have not appeared. This is the biggest difference between China's financial environment and the United States, and another obstacle that China's e-commerce development cannot surpass.
Differences in credit consumption environment between China and the United States
Commercial Bank of America absolutely trusts the credit consumption of cardholders. Once a cardholder commits fraud in credit consumption, he / she will be listed in the blacklist library corresponding to the Social Security Number. Due to the uniqueness of the social insurance number in the United States, once a cardholder enters the blacklist, it will no longer be able to obtain the credit consumption qualifications of any commercial bank. Losing eligibility for credit consumption is equivalent to losing the basic conditions for survival in the United States. This is also an important reason why credit consumption is very developed in the United States.
China's credit consumption environment
Chinese culture has a long history and "pay attention to credit" is a basic feature of Chinese culture. However, Chinese commercial banks have absolutely no confidence in the "credit consumption" of cardholders. Not only are the card issuance procedures complicated and harsh, but the consumption quota is very limited. Without a good environment for credit consumption, there is no solid foundation for the development of e-commerce.
Problems in the Internal Development of China's Electronic Banking
I. Lack of variety of online banking services
It did not play a role in restructuring and re-engineering the banking business. The products provided by online banking, whether it is account inquiry, transfer service, agency payment, bank certificate transfer, or settlement for corporate sales network, internal fund transfer for group customers, in addition to the problem of relatively small business varieties, the other A more prominent problem is that these products are only the realization of traditional businesses in online banking. That is to say, online banking only serves as a traditional banking service channel. The product has not completely escaped the restrictions of traditional business functions and has not launched the use of online services. The bank directly faces the characteristics of customers to reorganize the new products and applications of the business processes of commercial banks; the characteristics of personalized services are not reflected in the operation interface, they are just simple imitations of traditional business processing system interfaces, and they do not reflect the fundamental attributes of INTERNENT Attract customers by change and novelty.
Second, the online payment function needs urgent breakthrough and improvement
For B2C small online transactions, such as payment of mobile phone charges, telephone charges and small purchases, etc., commercial banks generally use credit cards and savings cards as payment tools to provide online payment services for signing customers of the Bank, which basically satisfies the signing of the contract. Customers' online payment needs; but for B2B large payments, the situation of "online ordering and offline payment" is still maintained, and B2B transactions generally account for about 90% of the e-commerce transaction value. Therefore, the development of e-commerce is urgently required Commercial banks improve online payment methods.
Third, the security issues of online transactions need to be resolved
Fund security is critical to customers, merchants and banks, so security issues are at the core of online banking. The security of online transactions mainly involves the following three aspects: first, the security of the client. If the client is just an ordinary browser user, there is a possibility that the client can be imitated; second, the security in the process of information transmission, In traditional payment methods, payment information is transmitted on the bank's internal network. The internal network and the external network have adopted considerable security isolation measures. Therefore, the security of the internal network is relatively high. Online payment is the opposite. Payment information is in It is publicly transmitted on INTERNENT, so there is a possibility that the payment information can be tampered with and stolen. The third is the security of bank websites and e-commerce websites. Although each website has adopted security measures such as firewalls and network detection, but for super " For hackers, "there is still the invincible problem. Surveys have shown that when conducting online transactions, users are also most concerned about security issues.
Specific analysis of website payment in China
China Electronic Commerce Network (a comprehensive and detailed survey of the status of e-commerce on the Internet in China, and a survey of payment issues at various websites.
Analysis of payment methods
The payment methods required by these e-commerce websites include: direct online payment nationwide; China Merchants Bank All-in-One Card and One Netcom; Bank of China Great Wall Electronic Debit Card; China Construction Bank Long Card, Agricultural Bank Golden Harvest Card; Bank of China Great Wall RMB Credit Card; ICBC Peony RMB Credit Card; Agricultural Bank of China Golden Spike Card, etc .; worldwide online direct transfer (VISA foreign currency card, MASTER foreign currency card); Beijing online direct transfer (ICBC passbook account, Shanghai Pudong Development Bank Oriental Card, Shanghai Pudong Development Bank passbook account); cash method (Payment or delivery payment); Telegraphic transfer or postal transfer (postal); Membership (membership card); and Internet fees, consumer cards, etc.
China Merchants Bank Case Study
On April 8, 1987, following China's burgeoning reforms in the financial system, approved by the People's Bank of China and funded by China Merchants, China Merchants Bank, the first joint-stock commercial bank founded by an enterprise in China, was announced in Shenzhen, China. Thus, the exploration of establishing commercial banks by Chinese enterprise groups began.
In the past 14 years, China Merchants Bank has adopted a new management system and operating mechanism to actively and steadily develop its business, and its operating indicators have always been at the forefront of the domestic banking industry.
China Merchants Bank ranked No. 222 in the Banker's "World's 1000 Largest Banks" 2000 ranking, which has surpassed the medium-scale level of the world's 1000 largest banks; in the "European Currency" 1999 "Asia's 1000 Largest Banks" In the ranking, the return on equity of China Merchants Bank ranks first in the Asian banking industry; in the US Global Finance magazine's 2000 evaluation, China Merchants Bank was named the best local bank in China in 2000.
China Merchants Bank Online Banking
The "One Card" peer-to-peer industry, introduced in 1995, is a pioneering act in China's banking industry in personal finance. China Merchants Bank launched its banking website in April 1997. In February 1998, China Merchants Bank launched the "One Netcom" service, becoming the first bank in China to launch online banking. In September 1999, China Merchants Bank took the lead in comprehensively launching online banking services in China, and established a bank service consisting of five major systems: online corporate banking, online personal banking, online securities, online mall, and online payment. Banking service system.

IN OTHER LANGUAGES

Was this article helpful? Thanks for the feedback Thanks for the feedback

How can we help? How can we help?