Internet+Banking

__** Internet Banking **__


 * 1. Describe the term.**
 * Internet banking** – Also known as online banking, is similar banking, but done online, through a browser with a secure (usually https connection) platform that allows users to access their bank accounts and make financial transactions. This consists of customers having to log in to their virtual bank accounts online to access the system that helps carry out transactions from their accounts. There are two types of internet banking, one is the type that has both the physical building, as well as an internet banking option; the other is the type that only has a virtual account, and cannot be accessed through a building or counter.


 * 2. Describe the use of IT in each area, (internet, database, etc)**
 * Internet** – The Internet is used for connecting to the internet banking websites, such as Kasikorn Bank and HSBC. Internet banking websites are hosted on servers connected to the internet. For security reassurance, internet banking websites tend to use an https connection. This ensures a secure session for their customers while they carry out their financial actions online through browsers such as Google Chrome and Internet Explorer.

For example, customers need to have an internet connection in order to be able to connect with the banks’ websites, which is what they need to connect to in order to use the internet banking system. Once they have connected to the banks’ servers, the customers need to maintain their connection, as well as secure their internet connection by looking to see if the webpage has a secure connection, such as HTTPS, which helps provide information that the bank has been officially verified.
 * Software** –
 * Internet browsing software** – such as Google Chrome and Internet Explorer, are used in internet banking. Clients are able to access their internet banking websites through the input of that bank’s web URL into the internet browser.
 * VPN –** A Virtual Private Network may also be used by clients for a more secure way of connecting to a website to carry out their financial actions. The VPN encrypts data that is being relayed from the client’s device (computer or mobile phones) with the bank’s server.
 * Web Designing Software –** The bank’s website itself is most likely to be created through website designing software such as Adobe Dreamweaver. These web designing software are what creates the user interface for carrying out actions, such as making a deposit or a purchase.
 * Database** – Through the website, users are able to gain access to a database, which is another software, that keeps records of the client’s personal information, such as account name and password, as well as the client’s bank records (transaction history, available savings, payments due … etc. ) for financial actions to be carried out.

[] Here, users use their PCs, to connect to the Internet via their ADSL Modems (Modems used for connecting to the internet) where it goes through the router that determines where the connection will be connected to, and has to go through security scans of the firewall. After the connection has passed the firewall, it will end up at its destination at the banks’ web server. From the banks’ web server, customers are able to carry out transaction actions. Once an action is conducted, the signal for carrying out the transaction is relayed through another firewall to access the Bank’s Data servers to make the appropriate changes the customer wishes to make.


 * 3. Explain how IT helps with each area.**
 * Internet** – The internet is used for online banking, which is another alternative for banking. The internet connection to the banks’ web servers is vital for carrying out financial actions through the banks’ websites (which also have to use an internet connection to access). This helps the banking run more efficiently. Customers don’t have to visit the physical bank building every time they want to carry out a financial action (transactions, deposits … etc.). Customers can carry out these actions from their computers as well as mobile devices. Internet banking also helps relief physical bank branches of customer traffic. Thus, banks would require less human staff to aid customers at counters.
 * Software** – Internet browsers, such as Google Chrome and Internet explorer, help customers by giving them the software that is needed to access internet banking websites. A VPN helps create a securer tunnel of submitting data over the internet connection to bank servers. A web designing software helps the website creation division of internet banking creates a website for the bank more easily. The web design helps aid customers in carrying out financial transactions more easily through a series of clicks, and scroll down menus for available options, instead of writing on a paper check. This also helps lessen paper for banks.
 * Database** – This helps the organization factor of banking, keeping organized records of all the transactions that take place in each of their customer’s bank accounts. It can also be used by the customer to view their past transactions. Relational databases that are used help synchronization of the inventory of records, and helps during data updates because it links and updates the rest of the linked databases.


 * 4. Describe any problems with IT in each area.**
 * Internet** – The problem with the internet mainly lies within the internet connection, how fast the connection is, as well as how reliable the connection is. Slow internet speeds can result in the “internet cannot display page” which can cause errors while carrying out financial transactions, and can disrupt the flow of the transaction. The connection in the internet can also be hacked (such as having a MITM attack), which is a security issue.
 * Software** – The problem with the software may be the reliability of the software to be able to carry out the correct actions for the transactions. Also, glitches, or links to various actions that have problems can impair the efficiency of the site that is being used for transaction details. The software that is used is a database, so the reliability of the database software (the correct actions that are linked with what is labeled) may be a problem if incorrectly linked.
 * Database** – The organization of the database may be helpful to the banks in organizing data, however, if incorrectly altered while having new transactions, conflicts can occur, which would be a problem. The customer as well as the bank officials may have conflicting records of the transactions that are taking place.


 * 5. Identify and explain possible issues with each area. (Strand 1)**
 * Reliability** – This is an issue where transactions are carried out on. The reliability of the internet connection, the reliability of the buttons and options that are being used to carry out financial actions. What is labeled on the buttons and options that customers clicked on have to be properly linked with the database to carry out the correctly labeled action. If incorrectly labeled, customers would have their banks do actions that they did not intend to do (such as depositing, instead of taking out money (if buttons were incorrectly linked to their labeled action)).
 * Integrity** – The integrity of the database may also be an issue, where data can be altered, but not saved properly to another related database. There can be a conflict of records, which can cause problems to the transaction history.
 * Security** – The security of the user’s identification as well as sensitive bank account numbers, passwords, and information. The use of the https connection is considered to be secure, however, there may still be instances where hackers scam the website into tricking their customers, that risks the customers’ sensitive information.
 * Authenticity** – The authentication process of the user while logging into their virtual bank accounts. Using only a password to log into the system may not be secure enough to reassure users that their accounts aren’t compromised. Now they are also using random number generator devices, as well as session time outs so that there are periodic authentication measures.

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