The Impact Of Maybank Online Banking Information Technology Essay

The Impact Of May swan Online Banking Information Technology EssayComputing and IT in the body of work is one of the vital modules that must be deeply studied due to its widely importance which feeling on organizations development and behaviour. In this report we forget shows an explanation slightly Online Banking constitution in May wedge. And we volition re go out what the functionality, advantages and disadvantages, and the impact of May jargon Online Banking remains. In addition, we im array discuss the similarities and differences of Maybank Online Banking system with lucre and The World Wide Web, security measures Issues, and Real-Time-Systems with a recomm fireations and solutions for future enhancement.IntroductionAs mentioned on (whitethornbank2u.com.my, 2010) Malayan Banking Berhad or Maybank was in incarnated in Malaysia on 31 May 1960 and commenced operations on 12 September 1960. On 17 February 1962, Maybank was listed on the so Kuala Lumpur Stock Ex qualif y (today Bursa Malaysia). Maybank is today among the result companies by market jacketisation on Bursa Malaysia.Maybank is Malaysias largest financial unravel group with total assets exceeding RM330 billion. The Group has an extensive global ne cardinalrk of 1,750 offices in 14 countries that is to say Malaysia, capital of Singapore, Indonesia, Philippines, Brunei Darussalam, Vietnam, Cambodia, China, United Kingdom, U.S.A., Bahrain, Papua New Guinea, Pakistan and Uzbekistan.The Group offers a comprehensive range of financial dish of processs and products ranging from commercial banking, investing banking, Islamic banking, bankers bills issuance, offshore banking, leasing and hire purchase, insurance, factoring, trustee operate, asset management, stock broking, nominee services, venture capital and Internet banking. Today, the Maybank Group has oer 39,000 employees who serve over 16 million customers worldwide, with 9.5 million customers in Malaysia alone.Maybank has been systematic all(prenominal)y ranked among Malaysias most valuable brands. It is also ranked first among Malaysian banks by Brand render in its Global 500 survey and 118th among the top 1,000 banks in the world by The Banker Magazine.A legacy of Growth and LeadershipMaybank is the largest bancasssurance player in the region and its internet banking enjoys over 50% of market fortune in Malaysia. Its Islamic banking arm, Maybank Islamic Berhad, is No 1 in the Asia Pacific region today and among the worlds top 15 Islamic banks.The Groups Insurance Business under the Etiqa brand is among the top in the indus attack oblation Life and General conventional insurance as well as Family and General Takaful plans. Investment Banking Group, spearheaded by Maybank Investment Bank, one of the leading investment banks in Malaysia, offers a comprehensive range of investment solutions, from corporate finance to debt capital markets, equity markets to research and strategic advisory.Maybank has r eceived numerous awards as testimony to its lead and innovation in product offerings and services. The Groups foundation of strength, consistent record of profitability and strong balance public opinion poll is testament to its resilience in all economic cycles.Corporate ResponsibilityThe Group has over the days placed a priority on creation a responsible corporate citizen through heterogeneous activities, initiatives and programmes, with the primary objective of making a difference in the community, environment and human capital development. As a responsible organisation, we embrace industry best forms in corporate governance by promoting a culture of excellence, transp arncy, integrity and coverability in our daily operations.Celebrating 50 years in 2010This year, Maybank celebrates its 50th anniversary.Functionality of maybank Online BankingMayBank online system allows people to perform Banking activities. It provides a fast and convenient port of performing common banki ng operations on the Internet. If you take over a computer with Internet vex, a sack up browser, youll be able to do your banking from the creature comforts of home, office or practical(prenominal)ly anywhere else in the world.Maybank ATM/ denomination card holder has to decl are before he clear get to Maybank internet banking system online for the first time only. here(predicate), much(prenominal) flesh out on how to apply as mentioned on (maybank2u.com.my, 2010)Go to the nearest Maybank ATM.Enter you Maybank ATM/ de nonation card.From the chief(prenominal) menu, Choose Maybank2u Services.Choose Maybank2u Application.Enter your take 6-digit Maybank2u.com PIN.Repeat the same PIN again to confirm.Then, Maybank ATM/ acknowledgement card holder has to complete registration byGo to www.maybank2u.com.Click on Login.Click on Login for new users.Read the Terms and Conditions, then click on the Accept saveton.Enter the ATM/credit card number that you used to apply for your Maybank2u.com in the Access Number field.Enter the 6-digit Maybank2u.com PIN that you have selected and click on Activate.Enter your preferred username and countersignature for all future entryion.Now, Applying and registration has been completed. And the Maybank ATM/credit card holder can entranceway his bank note easily byGo to www.maybank2u.com.Click on login.Enter your username and password that you select before.By accessing Maybank online system user can banking online and performs his/her banking activities remotely.The system provides a locoweed of functions which make the banking Processes easier for the users. Here more details on what user can do through the system.Accounts Banking let users to mess and manage their accounts, make payments, and transfer storehouses.Bill Payment allow users to pay their bills from almost 600 payee corporations available, pay their Maybankard credit card bill, pay their income tax to LHDN, make DMP Payment, and pay their American E xpress charge card bills.Transfers allow users to transfer funds amid their testify accounts, to an or so separate persons Maybank account, to a local account or to an account overseas.Fixed Deposits allow users to view their existing fixed deposit account details, make an online localisation or upliftment.Rewards Points allow users to check their TreatsPoints or their American Express rewards.InvestmentAllow users to trade exploitation Online Stocks, make an EPF payment or manage their EPF accounts, apply for eShare or manage their CDS accounts, choose a fund allocation, view a Maybank Investment portfolio report, commemorate their ASNB Account and make Additional Purchases, view their FCA account details, and view their GSPA account details.InsuranceAllow users to purchase and renew their insurance policy or purchase.LoansAllow users to view and manage their personal, home, and car loans.Mobile BankingAllow users to sign up for Mobile Financial Services (mobile banking acco unt), register their number and dislodge their Service Provider.Personal DetailsAllow users to change their login password, update customer touch sensation knowledge, view their personal details and update their pro consign.Buy OnlineAllow users to top up their mobile prepaid, steal prepaid mobile and MYeCASH PIN, reload or buy their IDD/STD card and internet prepaid.Maybank SGAllow users to access their Maybank Singapore account.Bills StatementsAllow users to view their bank trading statement, bills and credit card statements, loans statement, and their debit and credit banking advices and notices.Advantages of MayBank Online BankingPay a billElectronic bill payment service allows a depositor to send currency from his or her online account to a creditor or merchant, for example to a public utility or a surgical incision store. in that location is no need to stand in a long line on a pass morning to handle your proceedings.Transfer fundsWith online banking, you can make b ills transfer between your own accounts, or send silver to a third party account. All you need is recipient/payee information and enough funds in your account. Quite often, the operations are performed in real time vision automatically updated spending reportAll your purchases are sorted into familiar categories automatically to save, no expenses to enter. It is flourishing to see where your money goes.Track your payment historyOnline banking gives you an opportunity to search your payments by transaction type, date, explanation or amount. When did you sound pay Company X? When did you buy your computer? To whom did you make your most new-made payment? Your bank knows the answers.Schedule payments in advanceMost banks offer customers the ability to schedule a payment on a specified date. Once the amount is entered and the payee is checked off, the funds are automatically deducted from your online bank account.Take advantage of online brokerageInternet banking lets you invest online. You can place and confirm trades 24 hours a day, seven days a week. Most banks provide a wide range of money market instruments from various issuers.Change contact detailsYou can log in to your online account and change contact information (e-mail address, telephone number, password, etc.). It is more secure than to send this information by e-mail.Get alertsThis service allows you to receive timely e-mail messages from your bank about any critical changes related to your Internet accounts. For example, you can get alerts when you make a withdrawal or change your contact information.Disadvantages of MayBank Online BankingSecurityYes, online banking is generally secure, exclusively it certainly isnt al instructions secure. Identity theft is running rampant, and banks are by no means immune. And in one case your information is compromised, it can take months or even years to correct the damage, not to mention possibly costing you thousands of dollars, as well.Some online bank s are more stable than others. Not all online setups are an appendage of a brick-and-mortar bank. Some operate completely in cyberspace, without the put on of an branch that you can actually visualise if need be. With no way to physically check out the operation, you must be sure to well do your homework about the banks background before giving them any of your moneyLearning abridgeCustomer service can be below the quality that youre used to. Some people manifestly take comfort in being able to talk to other human being opposite if they experience a problem. Although most major banks employ a dedicated customer service department specifically for online users, going through the dreaded telephone menu can still be sort of irritating to many. Again, about are considerably better (or worse) than others.Slow processingFrom the moment you entered a financial transaction with your bank via the computer. Usually the bank will require you to submit certain documents like an identif ication card, signature and the like. Not only will the bank online require you to submit documents but also to provide special power of attorney in cases where you want to do transactions together with your spouse. A cover example is when you want to manage all your wealth and resources together as a couple and you give care to view it online. Certain technical operations regarding online banking may be taxing too and complicated.As a result, not all online transactions are immediate. Online banking is subject to the same business-day parameters as traditional banking. Therefore, printing out and safe guardianship receipts is still very important, even when banking online.The Impact of MayBank Online BankingThe Online Banking services in Maybank have profound changes during the last decade. The most obvious change has been the large number of bank mergers, which have increased both the middling size of banks and the area over which they operate. Other changes may also prove dra matic but are at this point just getting under way the growth of Internet banking and the combination of banking with other financial services, such as insurance and securities underwriting.The implications of these changes for the profitability and safety of banks have been widely discussed, but what do they mean for local economies? Some analysts argue that the changes will improvement most communities by increasing the publics access to financial services and making it easier for banks to continue lending during regional economic downturns. Others argue that the changes will end up hurting many communities, especially underageer ones, because the large organizations created by mergers will be dulled in serving midget customers and will siphon off funds from smaller markets to lend in big cities. To shed light on the debate, this article focuses on the two groups that are most probable to be affected by the transformation of banking.Consumers and small businesses. Before the new-fangled changes, surveys consistently found that these two groups relied heavily on local banks for their credit and payments needs. It stands to intellectual, thitherfore, that they would also be the groups most affected by any changes in local banking practices resulting from consolidation, Internet banking, or financial integration. A further reason for foc apply on small businesses is that these enterprises play an especially important role in the economic performance of smaller communities the communities where there has been the greatest c erstrn about the possible adverse effects of the transformation in banking. The article concludes that the recent changes in banking are apparent to benefit consumers and small businesses in most communities, as long as they remain free to choose between small and large banks for their banking services. The first section of the article reviews the common chord majorChanges in the banking system consolidation, Internet banking, and f inancial integration. The next two sections argue that these changes are likely to benefit both consumers and small businesses, provided small banks are available to fill any gaps in service or credit to smaller customers. The last section concludes that small banks face a major but not insurmountable obstacle in continuing to fill this role-the increased difficulty of obtaining funds.THE IMPACT OF THE ONLINE BANKING ON CONSUMERSConsumers have traditionally relied on nearby banks and branches for many of their banking services. The transformation of online banking in Maybank now under way will hurt consumers by raising the price or reducing the quality of these services. Or the changes benefit consumers by expanding the array of services will offered by banks and allowing consumers to go outside the local market for banking services. It was once thought that the main benefit to consumers of online banking would be lower fees for banking services or higher(prenominal) rates on deposi ts. According to this view, the cost to banks of online transactions would be very much lower than the cost of traditional transactions through a normal branch. As a result, consumers would be charged lower fees orPaid higher deposit rates if they banked online instead of going to a branch office. Proponents of this view pointed to the example of online brokers, who charge investors much little for trading stocks than either discount brokers or traditional full-commission brokers (Marks).THE IMPACT OF ONLINE BANKING ON SMALL BUSSINESS bid consumers, small businesses have traditionally obtained most of their banking services from nearby banks and branches. Will the transformation of banking hurt small businesses by shifting ownership of these banking offices to large, distant organizations un diverted in dealing with small customers? Or will it admirer small businesses by making banking and other financial services cheaper and more convenient.As noted earlier, mergers have signif i coin bankly increased the share of banking resources controlled by large, widely dispersed organizations. Some observers worry that this change in the banking system will end up reducing the total egress of credit to small businesses. These observers acknowledge that around of the businesses that are denied credit as a result of bank mergers may be bad risks that should not have received loans in the first place. They argue, however, that mergers will also reduce the supply of credit to many profound risks, hurting the local economy.As in the case of consumers, the main benefit of online banking in Maybank to small businesses is likely to be greater doohickey. For several years, large businesses have enjoyed electronic access to their banks through private computer networks. Internet banking in Maybank is now extending that access to smaller businesses. Some bank web sites allow small business customers to view their balances in real time, transfer money between accounts, and originate wire transfers. A smaller number of bank web sites also offer coin management services and payroll services. Industry observers predict that more banks will offer such services over time because small businesses are among their most profitable customers. Large banks have shown particular affaire in this area, apparently viewing online banking as a way to lure small business customers aside from smaller banksInternet and World Wide WebMaybank shoot away Transfer and the InternetThe internet is a worldwide collection of networks that connects millions of computers and it plays the main role in Maybank transaction system especially online banking, because all the transaction is done by Internet and without the internet there is no online banking. Maybank has become very popular in a world of electronic debits and transfers and other banking activity that, until recently, you would have to have made a misstep to the bank to do. All aspects of modern society has benefited from online banking because of the convenience that the internet offers. Internet banks have to make themselves hypnotic to potential customers. They do this by offering high-yield checking accounts. Internet banks have the comfort of doing so because they do not have the same overhead cost as normal banks. Internet banks are much cheaper to operate than traditional banks, so Internet banks can pass the savings on to their customers. Once they have secured your business, Internet banks offer you other services. You will be able to complete your checking, savings, credit cards, mortgages, investments, bill payments and much more from the comfort of your own living room.Maybank has developed a product package designed to provide unproblematic and secure file exchange between the bank and its customers through any of three (3) delivery take Web, Desktop Connection or Secure transfer. But in todays networked world of the internet, the browser and e-mail are the ubiquitous software tools used for information exchange. These tools do not adequately support secure file transfer of any matter but small files while the ability to track and audit file movement is limited. With M-Secure File Transfer OBS, banks can transmit and receive data automatically without scripts or manual intervention using the web, OBS Desktop Connection Client or Secure FTP. Online Messenger will regularly check for files to be delivered to clients or sent to the bank from designated folders on the customers PC. Customers only have to place a file in the designated send folder and the file will be automatically transmitted to the bank. No complicated FTP processes, no modems, no scripts. Data Delivery is secure, using a strong encryption algorithm puffer with a 448-bit key. Each user has a unique User ID and Password that must be changed each 30 days.E-CommerceE-commerce is business transaction that occurs over the internet and online banking system in Maybank makes it easier, for inst ance, all these business and transactions can be done and paid at home if you use Maybank online banking. Without the online banking, e-commerce would be difficult and we will have to do these businesses by ourselves because once you want to buy something from the internet youll have to transfer the money and that means going to the bank and do all the transactions and that costs us time, effort and money.communicationsOne type of internet banking that Maybank has is Communicative and this type of Internet banking system allows some interaction between the banks systems and the customer. The interaction may be limited to electronic mail, account inquiry, loan applications, or static file updates (name and address changes). Because these servers may have a path to the banks internal networks, the risk is higher with this configuration than with informational systems.RecommendationsHere are some recommendations for Maybank in order to achieve a better online bankingProbably the first thing to think about with online banking would be the convenience. I rede for Maybank to give us the access to the online banking anytime of the day by improving their online system, because sometimes I have to transfer money for emergency but when I try to access my online banking I found it suspended and thats causes a lot of troubles.Compare the online banking services in Maybank with other banks in order to offer the best services to the customers.Train all the employees on questions customers will learn about online banking in order to make them get a clear idea about it, because some people till now are still afraid of online banking and dont use it. I also suggest for Maybank to make advertisements about this point.As a conclusion, online banking is a part of Internet and all the transactions system occurs by the internet. Like the internet, online banking has his own services and those services such as transfer money which cant be done without the internet and thats one th e common things between them. I suggest for Maybank to improve the convenience system and train all the employees to make people get a clear idea about online banking.Security IssuesSimilarities/ Secure WebsitesA secure website is a website using encryption and authentication standards to protect the confidentiality of web transactions.Digital certificatesDigital certificate is a form of electronic credentials for the Internet. Digital certificate is issued by a trusted third party to establish the identity of the ID holder. The third party who issues certificates is known as a Certification Authority (CA). Secure Sockets Layer (SSL) protocol from Verisign Certificate Authority. SSL is a secure way of transferring information between two computers on the Internet using encryption. Strong end to end encryption is also adopted within the banks computer networks and resources. To ensure data confidentiality and integrity, all information transmitted over the Internet is encrypted using the 128-bit (maybank2u.com.my, 2010). Maybank2u.com is WebTrust certified. This certifies our compliance with leading international security standards and Best Practices, as well as our commitment to maintaining a secure environment. WebTrust is an independent corporation that monitors and tests our facilities to assure that we maintain the highest and most current standards in Internet information security and exchange (maybank2u.com.my, 2010).As mentioned on (info.ssl.com, 2006) There are two ship canal to make sure that Maybank2u.com.my is a secure website1) Check the web paginate URLNormally, when browsing the web, the URLs (web page addresses) begin with the letters http. However, over a secure connection the address discovered should begin with https note the s at the end.2) Check for the Lock iconThere is a de facto standard among web browsers to display a lock icon somewhere in the window of the browser (NOT in the web page display area) For example, Microsoft Internet E xplorer displays the lock icon in the lower-right of the browser windowAs another example, Mozillas FireFox Web Browser displays the lock icon in the lower-left corner.- co-occurrenceMaking copies of data so that these additional copies may be used to restore the original after a data loss event.Backup procedureA fireman procedure represents the way you back up your files. Any relief procedure starts with a concept of a data repository. The backup data needs to be stored and organized. Therefore, its important to establish your backup procedure before choosing the backup solution that is right for you. Different backup procedure has different advantages.Maybank has its own backup procedure performing as followDay of WeekWeekly Full Backup with Daily Differential BackupWeekly Full Backup with Daily Incremental BackupsunshineA full backup is performed.A full backup is performed.MondayA derivative backup contains all changes since Sunday.An incremental backup contains changes since Sunday.TuesdayA differential backup contains all changes since Sunday.An incremental backup contains changes since Monday.WednesdayA differential backup contains all changes since Sunday.An incremental backup contains changes since Tuesday.ThursdayA differential backup contains all changes since Sunday.An incremental backup contains changes since Wednesday.FridayA differential backup contains all changes since Sunday.An incremental backup contains changes since Thursday.SaturdayA differential backup contains all changes since Sunday.An incremental backup contains changes since Friday.Differences/-Sensitive username and Password to access bank account onlineTo prevent unauthorised access to our online financial services, every customer is required to select a username and an alphanumeric password, which provides access to their financial information. The username must be between 6 to 16 characters and the alphanumeric password between 8 to 12 characters. The password must include bot h alphabets and numbers but you may also use special characters (e.g. * $) moreover spaces (maybank2u.com.my, 2010).-PhishingPhishing is a high-tech scam that uses spam or pop-up messages to attempt to deceive you into disclosing your credit card numbers, bank account information, Social Security number, passwords, and / other sensitive information.Phishing is the term coined by hackers who imitate legitimate companies in e-mails to entice people to share passwords or credit card numbers.Report on phishingMaybank made a hotline which you can contact and report about phishing and avoid being a victim of it. To protect yourself from being a victim of email or SMS Phisihng If you receive suspicious messages, contact immediately at 03-5891 4744.Real-Time-SystemsMy bank technology system is functional now, but as a feasibility demonstration, not a back up product. Its ability to transfer funds between its internal micro acounts and external accounts via the Automated Clearing support is turned off. The name, my bank, is a place holder for an eventual company name.Many online banking customers reuse their banking login credentials to access other websites, putting themselves at risk of account seizeing and online banking fraud, according to a study by Trusteer Inc.MY BANK-based online security vendor found that 73% of bank customers use their Internet banking password to access non-financial and less secure websites. Forty-seven percent use both their online banking user ID and password on other websites.The practice puts online banking customers at risk because criminals are using a variety of methods including database hacks, brute forcing and phishing to harvest login credentials from non-financial websites, such as social networking sites and Web-based email services, according to Trusteer. Thieves can then test the credentials on financial-services sites to hijack accounts and commit online banking fraud.Money Trouble in MY BANKA series of upsets could spell trouble for my banks virtual economyTheres a long line of avatars waiting to use the automatic-teller machines for Ginko Financial, a virtual bank in the online game Second Life. For more than a week, account holders have been demanding their money back in what some folks are calling a bank run.Set off by high interest rates and a recent ban on in-game gambling, the bank run could ultimately have a major effect on the games economy. The theft of approximately $12,000 from the My bank World Stock Exchange doesnt help matters either.My bank, is an online world where players can buy and sell all kinds of goods and services. The games economy is based on fictional currency, called linden dollars. But those dollars do have real-world value players can buy or sell Linden dollars at a rate of about L$270 to $1 on the Lindex market. My banks website even boasts that thousands of residents are making part or all of their real life income from their My bank businesses.Now the entire M y bank economywhich could affect more than 8.5 million playersis in trouble.Although financial institutions in My bank are careful to define themselves as games, some My bank banks offer more than 100 percent annual interesta tempting rate when combined with the adventure of turning Lindens into U.S. dollars via the Lindex. Right along with the promise of turning virtual currency into real-life riches are problems with how some Second Life financial institutions are run, says Robert Bloomfield, an economist at Cornell University who makes a serious hobby of canvas My banks economy.The average person who goes to a real-world bank isnt aware that theres a large regulatory body keeping track of the reserves the bank has, he says. But banks in Second Life, which Bloomfield compares with the Wild West, are shady and unregulated. Ginko Financials CEO, Andre Sanchez, of Sao Paolo, Brazil, has refused to release records of Ginkos investments or financial history, and he has not revealed a clear plan for returning peoples moneyNOW THER IS 3 Reasons Not to Use Online Bank Accounts* Customer Service with Online Bank Accounts One reason to avoid online banks is that you may run into bad customer service. With a brick-and-mortar bank, youll likely have some familiarity with the staff. At a small credit union, the staff cogency know you well.Why does this matter? Its easier to get good service if you know the staff and they know you. You can pick and choose who you deal with. However, if your online bank account offers any phone service, you have to take your chances with the 1-800 Lottery. You might get somebody helpful and knowledgeable, or you might not.* Online Bank Accounts and Speed of ClearingThe internet is supposed to make things faster. However, you might have to wait a long time for checks to clear. You certainly cant ask for a cashiers check if youre in the middle of a crisis and you need settled money yesterday.Likewise, deposits to your online