An Internship ReportOnAssessment about online banking: a Case Study of DBBLSubmitted byWWWASSI!"#$"%&OI"%CO#

1www.AssignmentPoint.com C'A&%$R O"$I"%ROD(C%IO" O) %'$ S%(D* ++ Importan,e of the Study Online banking is the practice of handling all the bank transactions through internet. We are blessed with such unique technologies where all our works gets completed within seconds. Internet Banking is one of such technologies. With the 2www.AssignmentPoint.comhelp of internet banking, we can deposit and withdraw amount our self directly to our account, make all kinds of bill payments, tax payments etc. We can pay our bills like telephone, mobile, credit cards etc. through internet just by once registering with our bank. After making registration, we can pay our bills as and when required. Internet banking allow us to access our account, so that we can know instantly which amount is credited or debited in our bank account which in turn will help to sole our issues if any. It is an easier way to transfer amount to another account to which we hae to make payment to the party. When we apply for internet banking, bank proides us with login id and password. !he password proided by the bank should be changed immediately and should not be gien to anybody else. !he password should be alpha"numeric and should be changed on frequent basis. !his information must be kept at utmost secret, as the password can be hacked by any person.+- Ob.e,ti/es of the Study #ain Ob.e,ti/e:3www.AssignmentPoint.com %he main objectie of the study is to assessment the current status about online banking of #utch Bangla bank ltd.

Spe,ifi, ob.e,ti/es: !o obtain main objectie, the other supportie objectie need to be attempted, which are $ !o find out an oeriew of #BB%.. !o point out different aspects of &nline Banking system of #BB%. !o identify the massie problem of online banking and the problem of#BB% related to &nline Banking. !o identify the risk related to online banking of #BB%. !o analysis the status of &nline Banking of #BB%. !o suggest some problem measure to oercome the problem. +0 #ethodology of the Study4www.AssignmentPoint.com'ere gienthe procedure usedfor data collection. #uringthe researchthecombination of both primary and secondary data was used. &rimary Data: 'rimary data is always known as surey data. !his type ofdata is collected from the respondent. (uestionnaire, )emi"structureinteriew, obseration.1uestionnaire*+lose ended questionnaire was used to know the reactionof customers and organi,ation about the facility which are proiding to thepeople. -. customers are participating in this questionnaire. Se,ondary data:+ollected some data from the analy,ing theorgani,ationWebsite /#utchbanglebank%imitedandBangladeshbanklimited0, 1ournals and Articles, 2xhibition and fair.+2 Limitations of the Study5www.AssignmentPoint.comAll the things in the world must hae some limitations and drawbacks. And somelimitations of the study that might hae preented in reaching more faithful result.!he problem I faced at the time of preparing the report, are as follows" 2ery organi,ation wants to maintain the confidentiality of the information. 2mployees may gie wrong information. #ue to time limitation many of the aspects could not be discussed. &nlinedepartmentwasn3t premisingmetoentree theirdepartmentduetomaintain their secrecy. It was not possible for me to isit in eery desk and talk to eery employeeand to eery customer. !here3s45#department is sostrongfor collect information3sbut theydidn3t response me fully.+3 Origin or ba,kground of the report It is mandatory to complete a three month internship program in order to completethe BBA program. After finishing my course work, I was assigned to complete myinternship program in #BB%. As per the instruction of internship adisor, I wasdeoted to learn the banking operation of #BB%. #uring the tenure of myinternship program, I worked in three section of online banking. 4oweer, I haeworkedmoreigorouslyininternet andaswell asI!department inparticular.Based on the learning and practical experience, I hae prepared this report. It isalso mandatory to submit a report to the bank.6www.AssignmentPoint.comC'A&%$R %WO A" O4$R4I$W O) DBBL

7www.AssignmentPoint.com-+ Brief history of Dut,h bangla bank limited #utch"Bangla Bank started operation is Bangladesh6s first joint enture bank. !he bank was an effort by local shareholders spearheaded by 7 )ahabuddin Ahmed /founder chairman0 and the #utch company 87&.8rom the onset, the focus of the bank has been financing high"growth manufacturing industries in Bangladesh. !he rationale being that the manufacturing sector exports Bangladeshi products worldwide. !hereby financing and concentrating on this sector allows Bangladesh to achiee the desired growth. #BB%6s other focus is +orporate )ocial 5esponsibility /+)50. 2en though +)5 isnow a clich9, #BB% is the pioneer in this sector and termed the contribution simply as 6social responsibility6. #ue to its inestment in this sector, #BB% has become one of the largest donors and the largest bank donor in Bangladesh. !he bank has won numerous international awards because of its unique approach as a socially conscious bank.#BB% was the first bank in Bangladesh to be fully automated. !he 2lectronic"Banking #iision was established in -..- to undertake rapid automation and bringmodern banking serices into this field. 8ull automation was completed in -..: and hereby introduced plastic money to the Bangladeshi masses. #BB% also operates the nation6s largest A!7 fleet and in the process drastically cut consumer costs and fees by ;.otespayableinany foreign country. Anything that coneys a right to wealth in another country is8oreign2xchange. #BB% proides premiumqualityserice for repatriationandcollection of remittance with the help of its first class correspondents and trainedpersonnel. By introducing on"line banking serice and becoming a )WI8!Alliance Access 7ember, which enable its branches to send and receie paymentinstruction directly, which helps proide premium serices.-+90 Credit department5iskis anintegral part of business =themainroleof our riskmanagementprincipleistofindtheoptimal balanceof risk=return. Bangladeshbankhasundertakenaproject toinstall acoreriskmanagement systemineerybank.#BB% Bank %td installing the same systemin respect to Asset liabilitymanagement, 8oreign exchange management, internal control = compliance, Antimoney laundering. !he bank prudently controls asset allocation through limitingexposure to industry sector = setting client limit. 7oreoer, the bank approed a>ew organi,ation structure to accommodate core risk management perspectie."oBoard of Dire,torsDesignation9+#r Abul 'asnat #d Rashidul IslamChairman9-#r otespayableinany foreign country. Anything that coneys a right to wealth in another country is8oreign2xchange. #BB% proides premiumqualityserice for repatriationandcollection of remittance with the help of its first class correspondents and trainedpersonnel. By introducing on"line banking serice and becoming a )WI8!Alliance Access 7ember, which enable its branches to send and receie paymentinstruction directly, which helps proide premium serices.-+93 Interest rate Loans and ad/an,esInterest RateAgriculture ;...< """??... Ad/an,es %oan against !rust 5eceipt !ransport %oan +onsumer +redit )cheme 5eal 2state %oan /5es. = +omm.0 %oan against Accepted Bill Industrial !erm %oan Agricultural !erm %oan %ease 8inance &ther !erm %oan 87& %ocal currency %oan for )72 87& 8oreign currency %oan +ash +redit /4ypothecation0 )mall )hop 8inancing )cheme-++15www.AssignmentPoint.com-+- A%# Ser/i,es16www.AssignmentPoint.comWe can find #BB% A!7s beside our home, in our office premise, nearby market, uniersity, college = school premises, Airport, 5ailway stations etc., throughout the country. Dsing any of the #BB% A!7 pools any where in the country, you can perform the following* Account balance enquiry +ash withdrawal $ -H hours a day, G days a week, :AE days a year +ash deposit to a certain number of A!7s any time!erm #eposit : 7onths!erm #eposit A 7onths!erm #eposit ?- 7onths!erm #eposit ?- 7onths!erm #eposit -H 7onths!erm #eposit -H 7onths ? Iear 'ayout!erm #eposit :A 7onths!erm #eposit :A 7onths A 7onths 'ayout!erm #eposit :A 7onths ? Iear 'ayout!erm #eposit aboe :A 7onths7onthly !erm #eposit Banks!erm #eposit : 7onths Banks!erm #eposit A 7onths Banks!erm #eposit ?- 7onths Banks17-+0 %reasury#BB% is well equipped for treasury operation through subscribing 5euters6s terminal and operating in )WI8! network. It is also well equipped with competent human resources for efficient dealing.#BB%3s treasury quotes competitie exchange rate for major currencies* )pot )aleJ'urchase 8orward )aleJ'urchase 7oney market Inter bank = +orporate )WA')-+2 A,,ount Ser/i,e17www.AssignmentPoint.com#BB% proides all the accounts serices as prescribed by the guidelines of +entralBank/BangladeshBank0. #BB%offers competitie interest rate andproidespremium quality serices for the accounts. Account serices are* 8oreign +urrency Account >on"5esident 8oreign +urrency #eposit Account />8+#0 5esident 8oreign +urrency #eposit Account /58+#0 +onertible and >on"+onertible !aka Account-+3 )oreign %rade#BB% extends finance to the importers in the form of* &pening of %J+ /8oreignJ%ocal0 +redit against !rust 5eceipt for retirement of import bills. )hort term = medium term loans for installation of importedImport )inan,e#BB% extends finance to the importers in the form of*?. &pening of %J+-. +redit against !rust 5eceipt for retirement of import bills.$?port )inan,e?. 're")hipment 8inance're")hipment finance in the form of*I0 &pening of Back"to"Back %J+II0 2xport +ash +redit-. 'ost")hipment 8inance'ost")hipment finance in the form of*I0 8oreignJ%ocal #ocumentary Bills 'urchaseII0 2xport +redit KuaranteeIII0 8inance against cash incentie-+7 )oreign Remittan,e18www.AssignmentPoint.com#BB% proides premium quality serice for repatriation and collection of remittance with the4elp of its first class correspondents and trained personnel. By introducing on"line banking sericeAnd becoming a )WI8! Alliance Access 7ember, which enable its branches to send and receie'ayment instruction directly, which helps proide premium sericesL 5emittance serices'roided by #BB% are* Inward 5emittance* #raft, !! &utward 5emittance* 8##, !!, !+ and +ash /8+0-+8 Western (nionWestern Dnion 8inancial )erices Inc. D.).A. is the number one and reliable money transfer+ompany in the world. !his modern 2lectronic !echnology based money transfer company has2arned world wide reputation in transferring money from one country to another country within!he shortest possible time. #utch"Bangla Bank %imited has set up a 5epresentation AgreementWith Western Dnion 8inancial )erices Inc. D.).A. as on ?Hth 8ebruary -..A-+@ DBBL Internet Banking#BB% Internet banking enables customer to access hisJher personal or business accounts anytime anywhere from home, office or when traeling. Internet Banking gies customer the freedom to choose hisJher own banking hours. It can sae time, money and effort. It6s fast, easy, secure and best of all.Dsing any of the #BB% A!7 pools any where in the country, you can perform the following* )ecurities with #BB% Internet Banking AJc &pening = Accessing Internet Banking Internet Banking 8eatures !erms = +onditions of Internet Bank19www.AssignmentPoint.com C'A&%$R %'R$$ %heoreti,al O/er/ieA of Online Banking

0+ Online banking 20www.AssignmentPoint.com

A system allowing indiiduals to perform banking actiities at home, ia the internet. )ome online banks are traditional banks which also offer online banking, while others are online only and hae no physical presence. &nline banking through traditional banks enable customers to perform all routine transactions, suchas account transfers, balance inquiries, bill payments, and stop"payment requests, and some een offer online loan and credit card applications. Account information can be accessed anytime, day or night, and can be done from anywhere. A few online banks update information in real"time, while others do it daily. &nce information has been entered, it doesn6t need to be re"entered for similar subsequent checks, and future payments can be scheduled to occur automatically. 7any banks allow for file transfer between their program and popular accounting software packages, to simplify record keeping. #espite the adantages, there are a few drawbacks. It does take some time to set up and get used to an online account. Also, some banks only offer online banking in a limited area. In addition, when an account holder pays online, heJshe may hae to put in a check request as much as two weeks before the payment is due, but the bank may withdraw the money from the account the day that request is receied, meaning the person has lost up to two weeks of interest on that payment. &nline"only banks hae a few additional drawbacks* an account holder has to mail in deposits /other than direct deposits0, and some serices that traditional banks offer are difficult or impossible for online"only banks to offer, such as traeler6s checks and cashier6s checks.0- Benefits of online banking21www.AssignmentPoint.com Let3s start off with the adantages of online banking. 8irst and foremost, online banking is ery, ery, ery conenient. It will allow you to pay your bills and maketransactions anytime during the day and the week. !he bank will neer close because you can access it through your laptop or computer. )o, no matter in which country you are anywhere in the world, you can go online and handle your finances.)econdly, online banking is ery fast, effectie and efficient. &er the Internet, youcan make transactions that are typically executed and performed at a much faster pace than at A!73s. &nline banking serices also gie you the option of handling seeral different bank accounts from one site itself.-'ay bills ")witch money from one account to the other" Meeping up to date with all of your latest cheque payments etcAnd doing all of the other things people does at banks in the comfort of their own home7ost online banking sites are compatible with programs like 7icrosoft 7oney and(uicken, which makes management of assets more effectie00 Common Online Banking Ser/i,es: 22www.AssignmentPoint.comBanking transactions can range from something as basic as a retail account balanceinquiry to a large business"to"business funds transfer. &n line banking serices, like those deliered through other deliery channels, are typically classified based on the type of customer they support. !he following table lists some of the common retail on line banking serices offered by banks are as follows* N Account management N Bill payment and presentment N >ew account opening N InestmentJBrokerage serices N %oan application and approal N Business"to"business payments 02 Online Banking Components &n line banking systems can ary significantly in their configuration depending ona number of factors. Banks should choose their online banking system configuration, including outsourcing relationships, based on four factors* N )trategic objecties for on line bankingC N )cope, scale, and complexity of equipment, systems, and actiitiesC N !echnology expertiseC and N )ecurity and internal control requirements. Banks may choose to support their on line banking serices internally. Alternatiely, Banks can outsource any aspect of their on line banking systems to third parties. !he following entities could proide or host /i.e., allow applications to reside on their serers0 on line banking"related serices for banks* N Another financial institution, N Internet serice proider, 23www.AssignmentPoint.comN Internet banking software endor or processor, N +ore banking endor or processor, N 7anaged security serice proider, N Bill payment proider, N +redit bureau, and N +redit scoring company. 03 Re:uired &hysi,al Infrastru,ture for Online Banking Internet: !he Internet is a global system of interconnected computer networks thatuse the standard Internet 'rotocol )uite /!+'JI'0 to sere billions of users worldwide. It is a network of networks that consists of millions of priate, public, academic, business, and goernment networks of local to global scope that are linked by a broad array of electronic and optical networking technologies. !he Internet carries a ast array of information resources and serices, most notably theinter"linked hypertext documents of the World Wide Web /WWW0 and the infrastructure to support electronic mail. Intranet: An intranet is a private computer network that uses Internet Protoco technoo!ies to secure" share an" part o# an or!ani$ation%s in#ormation or network operatin! s"stem within that or!ani$ation& 'he term is use( in contrast to internet) a network *etween or!ani$ations) an( instea( re#ers to a network within an or!ani$ation& +ometimes the term re#ers on" to the or!ani$ation%s interna we*site) *ut ma" *e a more e,tensive part o# the or!ani$ation%s in#ormation technoo!" in#rastructure& It ma"host mutipe private we*sites an( constitute an important component an( #oca point o# interna communication an( coa*oration&24www.AssignmentPoint.com'ardAare: !he essential hardware required to build a complete online banking system includes* 'ersonal +omputers )erers 5outers 8irewalls 7odems )witches '&) /'oint of )ale0 !erminals A!7 /Automated !eller 7achines0 booths Software: -or con(uctin! onine *ankin! operations severa so#tware are now avaia*e such as -./0123/) a *ankin! so#twarewhich ena*es *anks to process an( store *ankin! transaction (ata an( makin! pa"ments throu!h a (e(icate( cient-server network& 4i5erent *anks use (i5erent t"pes o# so#tware (epen(in! on the cost an( other #actors&25www.AssignmentPoint.com07 &resent S,enario of Online Banking in Bangladesh !he commercial banking system dominates Bangladesh6s financial sector. Bangladesh Bank is the +entral Bank of Bangladesh and the chief regulatory authority in the sector. !he banking sector of Bangladesh comprises four categoriesof scheduled banks. !hese are four state"owned commercial banks /)+Bs0, fie state"owned deelopment finance institutions /#8Is0, thirty priate commercial banks /'+Bs0 and nine foreign commercial banks /8+Bs0. !he number of banks remained unchanged at H; in -..;. !hese banks had a total number of A;;A branches as of #ecember -..;. !he number of bank branches increased from AG?Gto A;;A owing mainly to opening of new branches by the '+Bs during the year. 6nine 3ankin! in 3an!a(esh is "et to (eveop accor(in! to internationa stan(ar(& At present) severa private commercia *anks 7P13s8 an( #orei!n commercia *anks 7-13s8 o5er imite( services o# teephone *ankin!) onine *ankin! #aciities workin! within the *ranches o# in(ivi(ua *ank in a cose( network environment& As a part o# steppin! towar(s onine-*ankin!) the -13s have pa"e( the pioneerin! roe with a(option o# mo(ern technoo!" in retai *ankin! (urin! the ear" 1990s whereas the state-owne( commercia *anks 7+13s8 an( P13s came #orwar( with such services in a imite( scae (urin! the ate 1990s& 9oreover) the *ankin! in(ustr" as a whoe) e,cept #or the #our speciai$e( *anks 7+3s8) rushe( to o5er technoo!" *ase( *ankin!services (urin! the mi((e o# the current (eca(e& 'he e,istin! #orm o# e-*ankin! that satis:es customer (eman( in *ankin! activities eectronica" throu!hout the wor( are P1 *ankin! or P1home *ankin! that incu(e onine *ankin!) internet *ankin!) mo*ie *ankin!) an( teephone *ankin!& 3e#ore (epictin! the entire scenario o# 6nine 3ankin! in 3an!a(esh a *rie# intro(uction o# the overa *ankin! sector o# the countr" is necessar"&26www.AssignmentPoint.com08(sers of online Banking o/er the last se/en years in Bangladesh

Iears-990-992-993-997-998-99@ -99B-9+9 -rom the :!ure we see that the Internet users o# our countr" areincreasin! ever" "ear& A#ter connectin! with the in#ormationsuperhi!hwa") the tota countr" wi *e connecte( *" :*er optic*ack*one; certain"it wi *eamiestone#or in#rastructureo#impementin! onine *ankin! in 3an!a(esh& In 3an!a(esh mosto# the *ankin! har(ware is avaia*e #or onine *ankin! is entire"procure( #rom#orei!n ori!ins with a oca (istri*utor& 6nine*ankin! operation har(ware incu(es; servers) workstation)printers) scanner A'9) P6+ terminas) etc an( networkin!har(wareincu(es switch) overnment is workin! on thecop"ri!htawan(thepreservationo# inteectua propert"act&27www.AssignmentPoint.comA#ter the success#u impementation o# a these poicies an(strate!ies we are e,pectin! that more than 50? o# the *anks wi*e o5erin! internet *ankin! #aciities which is now 12? on"&C'A&%$R )O(RStatus and Aspe,ts of Online banking ofDBBL

28www.AssignmentPoint.com2+ #ost lu,rati/e ser/i,es of DBBLElectronic Money (E-Money):/ectronic mone" 7asoknown as e-currenc") e-mone") eectronic cash) eectroniccurrenc") (i!ita mone") (i!ita cash or (i!ita currenc"8 re#ers tomone" or scrip which is on" e,chan!e( eectronica"& '"pica")this invoves theuseo# computer networks) theinternet an((i!ita store( vaue s"stems& /ectronic -un(s 'rans#er 7/-'8 an((irect (eposit are a e,ampes o# eectronic mone"& Aso) it is acoective term #or :nancia cr"pto!raph" an( technoo!iesena*in! it&Credit Cards:1re(it 1ar( can *e cae( as an e@uivaent o# aoan sanctione( *" the *ank to its customers& 1re(it car(#aciitates an( makes it possi*e to A2se -irst an( Pa" .aterB thespeci:e( amount o# cre(it as per the a!ree( terms o# sanction&'his car( #aciitates the car(ho(er to purchase !oo(s an(services #rom the merchant esta*ishments an( shops throu!h thecoa*oratin! cre(it car( companies ike =I+A) 9aster1ar()9aestro) an( 1irrus&29www.AssignmentPoint.comDebit Cards:A 4e*it 1ar( provi(es #or onine eectronicpa"ment ike 1re(it 1ar( *ut #rom savin!s or current accounts o#the car(ho(er #or purchases& 'his car( is a (eposit accesspro(uct where car(ho(er uses his own mone" in his *ankaccount throu!h the (e*it car( on the principeo# APa" -irst an(2se .aterB& 4e*it car( contains the s"m*o or hoo!ramo#coa*oratin!compan"suchas=I+A) 9aster1ar() 9aestroan(1irrus etc&ATM Cards:A'9 1ar( can *e use( to with(raw mone") (epositmone") *aance en@uires) (eposit *is in the account& 'hecar(ho(er must maintain a savin!s *ank account or currentaccount withthe*ank& 6nissuanceo# car() thecar(ho(er isintimate( a #our (i!it secret Persona I(enti:cation Cum*er 7PIC8&'he car(ho(er is awa"s re@uire( to maintain sa#e" the PIC toprevent #rau(uent activit"&AutomatedTellerMachines(ATM):-u ea*orationo#A'9 is AAutomate( 'eer 9achineB which acts ike a teer point in*ank who takes an( !ives mone" over the counter& A'9 is sameas teer point *ut it run automatica" throu!h i(entit" ike car(an( passwor(& It (oes not nee( an" sip or 1he@ue *ut it is ver"much *ase( on AD1 ho(erEs A'9 car( an( itEs Passwor(& 'hosewho are entite( #or A'9car() *ank has provi(e( themapasswor(a!ainst ever"sin!ecar(& 'his is ikea(e*it car(&30www.AssignmentPoint.comPeope can (eposit their mone" in a *ank account an( the" haveentite( with(raw their mone" throu!h A'9 car() which isappica*e #or 24 hours a (a" an( 365 (a"s in a "earPoint of Sales: Point o# sae 7P6+8 or checkout is the ocation where a transaction occurs& A FcheckoutF re#ers to a P6+ termina or more !enera" to the har(ware an( so#tware use( #or checkouts) the e@uivaent o# an eectronic cash re!ister& A P6+ termina mana!es the sein! process *" a saesperson accessi*e inter#ace& 'he same s"stem aows the creation an( printin! o# thevoucher&2- )un,tional ser/i,es perform by DBBL2-C+D A,,ount Summary!he +ustomer will be able to iew the list of +urrent, )aing, !erm #eposit and %oan accounts with the current balance. 2-C-D A,,ount Details !he +ustomer can choose a particular account and see the account details including unclear fund, limit, interest accrued etc. 31www.AssignmentPoint.com2-C0D A,,ount A,ti/ities !he customer can see or print his transaction actiity in a gien account for a particular period. 2-C2D $le,troni, )und %ransfer!he customer can transfer funds from one of his accounts to another of his accounts within the bank. !hird 'arty !ransfer O !he customer can transfer funds from one of his accounts to another customer3s account within the bank. 'ay Bills the customer can pay his utility bill /like 2lectricity, WA)A, KA), !elephone, 7obile, I)' etc.0 2-C3D Standing Instru,tions !he customer can setup, modify or delete standing instructions for transferring fund from one of his account to another account /his account or :rd party0. 2-C7D OpenE#odify %erm Deposit !he customer can open a term deposit by transferring funds from one of his currentor saings accounts with the bank. 4e can also modify the !# and redeem J part"redeem it. 32www.AssignmentPoint.com2-C8D Loan Repayments !he customer can make payment of the loan installment from his +A)A account. 2-C@D Statement Re:uest !he customer can make a request for account statement for a required period. !he bank will manually serice this request. 2-CBD Che:ue Book Re:uest !he customer can make a request for a +heque book. 2-C+9D Che:ue Status In:uiry !he customer can choose an account and enter the +hequeno for which the status should be iewed. 2-C++D Stop &ayment Che:ue !he customer can mark his +heque leaf as stop payment. 2-C+-D Interest Rate In:uiry !he customer can query on the interest rates on +A)A = !erm #eposit 'roducts. 2-C+0D )oreign $?,hange Rate In:uiry !he customer can query on the 8oreign 2xchange /8F0 5ates using this function. 33www.AssignmentPoint.com2-C+2D Refill &re;&aid Card !he customer can buy a refill number for his pre"paid mobile phone or I)' link. 2-C+3D Change &assAord !he customer can change his Internet Banking 'assword using this function.2-C+7D Letter of Credit!he customer can initiate the %+ application through Internet Banking.2-C+8D Bank !uarantee!he customer can initiate the Bank Kuarantee through Internet Banking.2-C+@D Limits 1uery!he customer can iew his %oan %imits and %imits Dtili,ation through Internet Banking.20 &ro,eeduring of laun,hing online banking to a ,ustomerIf any one would like then sJhe will do followIf you need help with the log in process of Internet Banking or hae technical question, please call #BB% Internet Banking 4elp #esk at ;;."-"G?GH.@E"G.Internet Banking )upport can be reached ia mail at #BB% Internet Banking 4elp #esk#utch"Bangla Bank %td. /?@th 8loor034www.AssignmentPoint.com:A, #ilkusha +JA, #haka"?...Bangladesh22 Charges of internet banking Internet Banking Annual fee* !k.-..J"22 Online Banking Se,urity of DBBL%o keep security of customer #BB% and all banks follow the curricular, as like it3s one of the biggest attractions of Internet as an electronic medium is its openness and 8reedom. It is a public domain and there is no restriction on who can use it as long as one adheres to its technical parameters. !his has also gien rise to concerns oer the )ecurity of data and information transfer and priacy. !hese concerns are common to any network including closed user group networks. . It will be sufficient to say here that the key components of such concern are, /I0 authentication,i,., assurance of identity of the person in deal, /ii0 authori,ation, i,., a party doing a transaction is authori,ed to do so, /iii0 the priacy or confidentiality of data, information relating to any deal, /i0 data integrity, i,., assurance that the data has not been altered and /0 non repudiation, i,., a party to the deal cannot deny thatit &riginated the communication or database23 Internet Banking groAth ofDBBL: Internet Banking is a product of e"commerce in the field of banking and35www.AssignmentPoint.com8inancial serices. In what can be described as B-+ domain for banking industry, #utch Bangla bank ltd offers different online serices like balance enquiry, requests for cheque books, recording stop"payment instructions, balance transfer instructions, account opening and other forms of traditional banking serices. 7ostly, these are traditional serices offered through Internet as a new deliery channel. Banks are also offering payment serices on behalf of their customers who shop in different e"shops, emails etc. .! Percentage of acti"e online #an$ing ser"ice user

Active customer 36www.AssignmentPoint.com 1urrent" not usin! /,aminin! routes to use 4i( not make comments

6n ine *ankin! is un(er(eveopment 'he :!ure shows that the percenta!e o# active customer usin! onine services are 30?& 'he rest num*ers o# customer are sti totake the services or in a position that the" are wiin! to take theonine services *ut are not aware enou!h a*out the *ene:ts o# onine services.% Position of &nline 'an$ing of ('') (As on May *+, -.++)Serial "o 4arious )orms of Online Banking Ser/i,es&er,entage CFD 9+ A%# 9839- $le,troni, )und %ransfer C$)%D 93390 &oint Of Sales C&OSD Ser/i,e 93-37www.AssignmentPoint.com92 Internet Banking and WA& 92293 S#S Banking 9+797 4irtual Banking 9+8398 %elephone Banking 90-9@ Any Bran,h Banking 97@9B S#S Banking+9 Remittan,e C$le,troni, WayD 9-0++ SWI)% Channel 900!his is shown that customer of &nline banking registered uses their serices.27 %ypes of risks asso,iated in Online banking of DBBL A major driing force behind the rapid spread of online banking all oer the worldis its acceptance as anextremely cost effectie deliery channel of bankingserices as compared to other existing channels and its applying same condition inBangladesh. 4oweer, Internet is not an unmixed blessing to the banking sector.Alongwithreductionincost of transactions, it hasalsobrought about aneworientationtorisksandeennewformsofriskstowhichbanksconductingo"bankingexposethemseles. 5egulators andsuperisors all oer theworldareconcerned that while banks should remain efficient and cost effectie, they must beconscious of different types of risks this form of banking entails and hae systems38www.AssignmentPoint.comin place to manage the same. An important and distinctie feature is thattechnologyplaysasignificant part bothassourceandtoolforcontrolofrisks.Because of rapid changes in information technology, there is no finality either inthe types of risks or their control measures. Both eole continuously. !he thrust ofregulatory action in risk control has been to identify risks in broad terms and toensure thatbankshaeminimumsystemsin place toaddress thesameandthatsuchsystems arereiewedonacontinuous basis inkeepingwithchanges intechnology. In the following paragraphs a generic set of risks are discussed as thebasis for formulating general risk control guidelines, which this Kroup willaddress. 27C+D Operational risk:&perational risk, also referred to as transactional risk is the most common form ofriskassociatedwithI"banking. It takestheformof inaccurateprocessingoftransactions, nonenforceabilityofcontracts, compromisesindataintegrity,datapriacy and confidentiality, unauthori,ed access J intrusion to bank3s systems andtransactions etc. )uch risks can arise out of weaknesses in design, implementationand monitoring of banks3 information system. Besides inadequacies in technology,human factors like negligence by customers and employees, fraudulent actiity ofemployees and crackers J hackers etc. can become potential source of operationalrisk. &ften there is thin line of difference between operational risk and security riskand both terminologies are used interchangeably. 27C-D Se,urity risk:Internet is a public network of computers which facilitates flowof data Jinformation and to which there is unrestricted access. Banks using this medium forfinancial transactions must, therefore, hae proper technology and systems in placetobuilda securedenironment for suchtransactions.)ecurityriskarises onaccount of unauthori,ed access to a bank3s critical information stores likeaccounting system, risk management system, portfolio management system, etc. Abreach of security could result in direct financial loss to the bank. 8or example,hackers operatingia the Internet couldaccess, retriee anduse confidentialcustomer information and also can implant irus. !his may result in loss of data,theft of or tampering with customer information, disabling of a significant portionof bank3s internal computer system thus denying serice, cost of repairing these39www.AssignmentPoint.cometc. &ther related risks are loss of reputation, infringing customers3 priacy and itslegal implications etc. !hus, access control is of paramount importance.+ontrollingaccesstobanks3 systemhasbecomemorecomplexintheInternetenironment which is a public domain and attempts at unauthori,ed access couldemanate from any source and from anywhere in the world with or without criminalintent. Attackers could be hackers, unscrupulous endors, disgruntled employees oreen pure thrill seekers. Also, in a networked enironment the security is limited toits weakest link. It is therefore, necessary that banks critically assess all interrelatedsystems and hae access control measures in place in each of them.In addition to external attacks banks are exposed to security risk from internal sources e.g. employee fraud. 2mployees being familiar with different systems and their weaknesses become potential security threats in a loosely controlled enironment. !hey can manage to acquire the authentication data in order to accessthe customer accounts causing losses to the bank. Dnless specifically protected, all data J information transfer oer the Internet can be monitored or read by unauthori,ed persons. !here are programs such as Psniffers3 which can be set up at web serers or other critical locations to collect data like account numbers, passwords, account and credit card numbers. #ata priacy and confidentiality issues are releant een when data is not being transferred oer the net.#ata residing in web serers or een banks3 internal systems are susceptible to+orruption if not properly isolated through firewalls from Internet. !he risk of data alteration, intentionally or unintentionally, but unauthori,ed is realin a networked enironment, both when data is being transmitted or stored. 'roper access control and technological tools to ensure data integrity is of utmost importance to banks. Another important aspect is whether the systems are in place to quickly detect any such alteration and set the alert. Identity of the person making a request for a serice or a transaction as a customeris crucial to legal alidity of a transaction and is a source of risk to a bank. A computer connected to Internet is identified by its I' /Internet 'rotocol0 address. !here are methods aailable to masquerade one computer as another, commonly known as PI' )poofing3. %ikewise user identity can be misrepresented. 4ence, authentication control is an essential security step in any e"banking system40www.AssignmentPoint.com27C0D #oney laundering risk As Internet banking transactions are conducted remotely banks may find it difficult to apply traditional method for detecting and preenting undesirable criminal actiities. Application of money laundering rules may also be inappropriate for some forms of electronic payments. !hus banks expose themseles to the money laundering risk. !his may result in legal sanctions for non"compliance with Qknow your customerR laws. !o aoid this, banks need to design proper customer identification and screening techniques, deelop audit trails, and conduct periodic compliance reiews, frame policies and procedures to spot and report suspicious actiities in Internet transactions27C2D Li:uidity Risk Arises out of a bank3s inability to meet its obligations when they become due without incurring unacceptable losses, een though the bank may ultimately be able to meet its obligations. It is important for a bank engaged in electronic money transfer actiities that it ensures that funds are adequate to coer redemption and settlement demands at any particular time. 8ailure to do so, besides exposing the bank to liquidity risk, may een gie rise to legal action and reputational risk.02C3D Credit risk Is the risk that a counter party will not settle an obligation for full alue, either when due or at any time thereafter. Banks may not be able to properly ealuate!he credit worthiness of the customer while extending credit through remote banking procedures, which could enhance the credit risk. 'resently, banks generally deal with more familiar customer base. 8acility of electronic bill payment in Internet banking may cause credit risk if a third party intermediary failsto carry out its obligations with respect to payment. 'roper ealuation of the creditworthiness of a customer and audit of lending process are a must to aoid such risk.41www.AssignmentPoint.com28 Online Banking &roblems of DBBL In #BB% banking systems, I! and infrastructure is not as well so good anddeeloped.#BB% has no digital database systemand serice is alsounderlined. Because of this, customers will not get right serice andmaintenance to their account serice with securely. 8or carrying out Internet banking properly, a basic knowledge of computersand the Internet is required, which limits the number of people willing toaail this facility. 7any people, who are not comfortable with computers andtheInternet, oftenfindit difficult touseInternet banking. !herefore, forbeginners, Internet bankingisreallytime"consuming. Inadditiontothis,people also find a difficulty in trusting a completely mechani,ed system likeInternet banking, in case of financial matters. In many instances, a simplemistake,like clicking a wrong button, may create a big problem.And so,many indiiduals often keep wondering if they hae properly executed thetransaction. But #BB% has no training and deelopment opportunity for thecustomers to take better serice. 'roblems are alsolistedinthe aailabilityof systemintegrationintheprocess. Incompatibility between e banking applications and legacy systemsmeans that most banks require middle wear tointegrate these systems.)ystem integrations has been and is still, to some extant a key barrier in ebanking. )hortcomingsthetechnologist infrastructureisoftenthebiggestproblem and also here include integrations of system. Another bigproblemis themanagement problemof different countries.Because inthe timeoftransactionmany countries hae differenttypes oflegal obseration and to maintain this types of obseration most of the casesbank is bound to close their operation with these problematic countries. Another big problem is that most of the customers feels unsecured to make their transaction because when they make transactions this report also go to the internet serice proider and this will hemp their secrecy and as 42www.AssignmentPoint.comperspectie of Bangladesh our banking system hae no indiidual serice protocol. #BB% bank I! department is not enough strong and employees of the bankis not well trained. 8or that their hae a tendency to passing the data oer theillegal party. )ometimes, Internetbankingcanbetime"consumingandtedious, asbankwebsitestakequitealongtimetogetstarted. Besidesthis, Internet bankaccount may also take considerable time to get started. +ustomers may alsoencounter technical difficulties and connectiity problems while conductingInternet banking transactions. &f course, there is a customer care departmentin almost eery bank to look into such matters, but often customers may notbe able to get the necessary assistance due to the congestion in the computerand telephone network. &n the other hand, in normal banking, customers cansimply conerse with the bank officials to sort out any problem2B %e,hnology and Se,urity Standards for Online Banking of DBBL!he Internet has proided a new and inexpensie channel for banks to reach out totheir customers. It allows customers to access banks3 facilities round the clock andGdaysaweek. It alsoallowscustomerstoaccessthesefacilitiesfromremotesitesJhome etc. 4oweer, all thesecapabilities come withaprice. !he highlyunregulatedInternet proides aless thansecureenironment for thebanks tointerface. !hediersityincomputer, communicationandsoftwaretechnologiesused by the banks astly increases the challenges facing the online bankers. In thischapter, an effort has been made to gie an oeriewof the technologiescommonlyusedinInternet bankingin#BB%. Anattempt has beenmade todescribeconcepts, techniques andtechnologies relatedtopriacyandsecurity43www.AssignmentPoint.comincludingthe physical security. !he banks planningtooffer Internet bankingshould hae explicit policies on security. An outline for a possible framework forsecurity policy and planning has also been gien.%e,hnologies!he purpose of computer networking is sharing of computing resources and data.Across the whole organi,ation and the outside world, +omputer >etworks can be'rimarily diided into two categories based on speed of data transfers andgeographical reach in #BB%.A%ocal area+omputer networking =Internetnetwork /%A>0 connects many serers and workstations within a smallgeographical area, suchas afloor or abuilding. )ome of thecommon%A>technologies are ?. 7B 2thernet, ?.. 7B 2thernet, ?KB 2thernet, Asynchronous!ransfer 7ode /A!70. !he data transfer rates here are ery high.#BB% commonlyuse broadcast mode of data transfer. !he Wide Area >etwork /WA>0, on the otherhand, is designed to carry data oer great distances and is generally point"to"point.+onnectiity in WA> set"up is proided by using dial"up modems on the 'ublic)witched !elephone >etwork /')!>0 or leased lines, S)A!networks, anIntegrated )erices #igital >etwork /I)#>0 or !? lines, 8rame 5elayJF.-E/'ermanent Sirtual +ircuits0, )ynchronous &ptical >etwork#BB% often use Sirtual 'riate >etworks /S'>0 which are software"defined#edicated and customi,ed serices used to carry traffic oer the Internet. !he different topologies, technologies and data communication protocols hae differentimplications on safety and security of serices.!o standardi,e on communications between systems, the International &rgani,ation of )tandards deeloped the &)I model /the &pen )ystem Interconnection 5eference 7odel0 in ?@GG. !he &)I breaks up the communication process into G layers and describe the functions and interfaces of each layer. !he important serices proided by some of the layers are mentioned below. It is necessary to hae a good understanding of these layers for deeloping applications and for deploying firewalls /described later0. Application %ayer* >etwork 7anagement, 8ile !ransfer 'rotocol, Information alidation, Application"leel access security checking. )ession %ayer* establishing, managing and terminating 44www.AssignmentPoint.comconnections /sessions0 between applications !ransport %ayer* 5eliable transparent transfer of data between end points, end to end recoery = flow control. &roto,ols: #BB% is also use protocols as follows* !he data transmission protocol suite used for the Internet is known as the!ransmission +ontrol 'rotocolJInternet 'rotocol /!+'JI'0. !he Internet is primarily a network of networks. !he networks in a particular geographical area are connected into a large regional network. !he regional networks are connected ia a high speed Qback boneR. !he data sent from one region to another is first transmitted to a >etwork Access 'oint />A'0 and are then routed oer the backbone. 2ach computer connected to the Internet is gien a unique I' address /such as ?H-.?A.???.;H0 and a hierarchical domain name/such as cse.iitb.ernet.in0.!he Internet can be accessed using arious application"leel protocols such as 8!' /8ile !ransfer 'rotocol0, !elnet /5emote !erminal +ontrol 'rotocol0, )imple 7ail !ransport 'rotocol /)7!'0, 4ypertext !ransfer 'rotocol /4!!'0. !hese protocols run on top of !+'JI'.#BB% is also consists with World Wide Web /WWW0.+ustomer uses hyperlinks, which allow users to moe from any place on the web to any other place. !he web consists of web pages, which are multimedia pages composed of text, graphics, sound and ideo. !he web pages are made using 4ypertext 7arkup %anguage /4!7%0. !he web works on a client"serer model in which the client software, known as the browser, runs on the local machine and the serer software, called theweb serer, runs on a possibly remote machine. )ome of the popular browsers are 7icrosoft Internet 2xplorer and >etscape >aigator.With the popularity of web, #BB% find it beneficial to proide access to their serices through the Internet to its customers. In a typical situation, a component ofthe application runs /as an Papplet30 within the browser on user3s workstation. !he applet connects to the application /directly using !+'JI' or through web serer using 4!!' protocols0 on the organi,ation3s application and database serers. !heir serers used different computer systems. !he web"based applications proideflexible access from anywhere using the familiar browsers that support graphics and multimedia. 45www.AssignmentPoint.com

C'A&%$R )I4$CData finding and analysisD46www.AssignmentPoint.com

2+ $mpiri,al AnalysisWith discussing eerything we reali,e something. 4oweer, with the adances intechnology, many banks hae taken the adequate measures to ward off anyproblemsrelatedtothesecurityofInternetbanking. +ustomerscanalsofollowsomesimpleprecautionarymeasures, likenot disclosingthepasswordandpinnumber to anyone, changing the password at regular interals andinstallingantiirus software to ensure security and safety of their Internet bankingtransactions. &nlinebankingtutorialsarealsoproidedbymanybankstohelpfamiliari,epeoplewithInternet banking. )o, youcanaail thisfacilitytouse47www.AssignmentPoint.comInternet effectiely, for making your day"to"day financial transactions. !o analysiswe can some tools of analysis, these are as follows.SWO% analysis!o find out the rationality of a product we must perform a swat analysis of thisproduct and serices. !his wills analysis the strength, weakness, opportunity andthreats of the particular serices or product. !o analysis the performance of onlinebanking of #BB% we the following analysis is considered.Strength Actually online banking serice of #utch bangla is not so aborigine. !heyare nowjust proidingserices of banktransfer, balance check, makepayment and especially fund disbursement is not possible now here. !heseare the simple functions they are now performing. Also they are not usinghttpserer tosecurethissericeandtheyhaen3t yet proidecustomertraining for getting the serices clearly and easily. It is cheap both for the banks and customers. !he bank will be able to lowerdown the oerhead costs and make more profit out of it though we knowthey are now already getting huge profit from this and we hope if they canminimi,e cost there mark up will arise. Again the customers will be also ableto meet their needs with a short time. Internet banking is conenient as theserices are aailable all the time at just a click away.Weakness )ecurity breakdown* !he system will hae a problem with the identifationsof theindiidual whoisactuallyinitiatingthetransactionsthoughfrombank their hae gien an account and password. Actually in Bangladeshthe identification of an indiidual is not yet supported digitally but recently#BB%haetakinginitiaties toensureit. )otherehaeaprobleminmoing to the internet era for banking purpose just now. 8irst #BB% hae todeelop a digital database to ensure the serice with maintaining security.48www.AssignmentPoint.com !he transactions can3t be cancelled ia internet. )o there hae a problem inexecuting the serices with full functionality.Opportunities #BB% offering non branch banking facilities. >ow a person can withdrawor deposit money in any branch of the bank that he has accounted with. )omoing uses of online banking are becoming ery common to all. I alsothinksericeoffer frombankthroughtheinternet will alsobewidelyaccept in a neat future.%hreats 'eople hae concern about their security and priacy. 7ost of them like tofell theirmoney with their hand. !hey actually don3t beliee in irtual money transfer. In the field of I! technology is coming eeryday. !he one which is erypopulartodaymight haeobsoletetomorrow.)otohaeacompetitieedge oer the competitie banks must always update and easy as well assecure their serices. !hemoement towardsonlineserices of #BB%, itsscopeis largelyunderutili,ed. !he reasons include high serice charge, lack of awareness,poor technology system, goernment policy, low buying power ofpotential clients and lack of business spend 2- Cost /olume profit analysis 49www.AssignmentPoint.com !he main benefits of online banking is the amount of time thus moneyit saes. Although internet banking is restricted to managing accountandmakingonlinetransactions, its cut out muchof theneeds topersonal isit to bank. Dsing internet banking will also increase theefficiency of paying money bills, debt and wages as it reduce the needfor writing and sending cheque .where it can takes fie days to takeclear. Wages andsalarypayments arealsoeasywiththis. &nlinebankingis abletooffers customers higher interest rates thanhighstreet banks due to their reduced oerheads. !hough online banking of#BB% haetakenan inestmentof moremoney butnow operatingexpensewillbemuchlower. Againalsocustomerswillbesatisfiedthroughfast, accurate, east touse, andcomprehensiedelieryofserices.20 )indings &nline banking serices of #utch bangla bank oer the last six years /'ercentage with comparing whole customers0&rodu,ts-997 -998 -99@ -99B -9+9Online ,orporate banking8F +-F +7F 07F 2-F50www.AssignmentPoint.com)und transfer+9F +-F +@F -7F 0@FCredit ,ard+7F --F -@F 22F 32FDa/it ,ard++F +7F --F -@F 00F#er,hant a,,ount ser/i,e-2F 00F 2+F 27F 7-FInternet banking +7F -7F 0+F 07F 2+F/5epresent data are unaailable0Last couple of years #BB% has increasing their serices security and clarity andthey are also emphasi,ing on online banking with consisting situations of bankingworld and are also enforcing comprehensie applications of it. !he bank expert hasdetermining that this sector will take by ?.. percent customers who will play aital role in banking growth and as well as financial sector.As giingthe emphasi,e fromB)angladeshbankit will deelopeasilyas aforecasting result BB has already deelop automated clearing house.Alreadybankauthorityarealsotakinginitiatiestotrainuptheiremployeetoproide the better serice .its also now oer iewing that customer efficiency andsatisfactions are also increasing gradually./#ata get from questionnaires0C'A&%$R SIGCO"CL(SIO" A"D R$CO##$"DA%IO"51www.AssignmentPoint.com 3+ Re,ommendationsWith obsering and analy,ing to dutch bangla bank ltd about their online banking Ihaegotmanythings ,something I hae got specialthan others andwhicharecarry extra goodwill for the bank after all I thing their serice is good but I wouldlike to add something to their serices and their operations. As I thing that this willmake an extra facility to the customers as well as this will ahead to a good position.52www.AssignmentPoint.comBank should deelop a digital database system. Bank should arrange training program for the customers to aoid anybig problem !herehaetoomuchtobeconcernedofsecurity. !hewebsitesforbanksusethehttps*protocolandthatcanbesnoopeduponbyanythird parties. !hebankauthorityshouldindicatetheexplorerbecausetheirhaesome explorers whose are sae client password. When customer make claim against bank then they should take quickactions. Its hae a tendency to do of money laundering so they should analy,eeach and eery transaction. !heyshouldlesstheir sericechargebythistheywill makehugecustomers. Intimeof international transactioncustomers facemanyproblemsrelated with different countries management condition. )o #BB%should clear eerything to the customers. !heyshouldmaintaininternational trisections curriculumtomakethem more grunted to country abroad. 2speciallytheyhaetoensurehowwill bankcustomersfeel abouthaing their personal and financial details thrown into the collectiepot for analysis of recommendations to other customersL I think it maytake some getting used to, but that kind of information is undoubtedly53www.AssignmentPoint.combeingaggregatedinsideofbanksalready. !heprospect ofallowingusers to benefit directly from their collectie data is an appealing one. !hey hae to increase technology expert as many as possible3- Con,lusion As globallyenhancingofinformationtechnology used alsoBangladesh ismaintaining the serial, here dutch bangla bank participating a great roll withperforming internet as well as online banking and they hae take a leadingpositioninonlinebanking. !hisit3scontainingagreat beneficiarytothepeople but there hae something which will be cause of hemp economy andcustomers priacy.8or that bank haetotakemuchinitiatiesto containfree from these risk. &nline banking is making business so much easier thatany time fast I think so. !hey hae to emphasi,e into online banking becauseit will take low operating cost for both customers and bank as well it willincreaseprofitabilityifbank. Withfollowingthebettersericestructureonline banking will reach door to door to customers and will makecustomer3s life easy to easier.Appendi?E:uestionnaire 54www.AssignmentPoint.com? What kind of facility they are gien nowL &nline data proide/0 &nline transaction/0 Both /0 >one/0- #oes themanager helpyouinopeningtheprocedurefor what youarelookingL Ies/0 >o/0: #o you think that the quickness and oerall function of their gien sericesby the organi,ation is sufficientL Ies/0 >o/0H By eacuating there customers reflection what you hae gotL )atisfied/0 4ighly satisfied/0 Aerage /0 4ighly dissatisfied/0 #issatisfied /0E With obsering their present serice status what you thing about their chargeand feesL conentionally/055www.AssignmentPoint.com high/0 ery low /0 should modify /0A 4ow much your expectation coers through the training programL Sery little /0 %ittle /0 8ully /0 >il /0G #o you think their executies should take more training to proide the bettersericesL #efinitely /0 no /0; Kie your iews about how important this is for management to spaciousaround new better innoatie sericeL 7ust/0 5equired/0 )omewhat required /0 >ot at all required /0@ whet your opinion about online banking where it contains security for thecustomers or notL56www.AssignmentPoint.com )trongly in all case /0 )ometimes fail /0 Dnsecured /0?. #o you agree that by performing these serices they are moing to a new placeL )trongly agree /0 Agree/0 Dndecided/0 #isagree /0 )trongly disagree /0?? Kie yours ies in time of meeting any international transactions. 4ae you face any problemL 57www.AssignmentPoint.com