development of the electronic banking services in romania

8/8/2019 Development of the electronic banking services in Romania

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42 Development of the electronic banking services in Romania

Development of the electronic banking services in RomaniaPh.D. Associate Professor Magdalena RdulescuFaculty of Economic Studies, University of Pites

tiPitesti, Romania

[email protected]. Lecturer Luminia erbnescu,

Faculty of Economic Studies, University of Pitesti

Pitesti, [email protected]

Abstract 1. IntroductionIn the present, a lo

t of banks have createdLaunching in Romania the banking products and

advertisement at thebeginning under the form of

services with long-distance access was based on web-sites with information, and then theyve createdimage motives for the Romanian banks, domestic

interactive web-sites and ulterior transactional web-institutions or foreign banks branches. In this way,

sites. However thereare a number of banks thatbanks wanted to be innovative and they didnt

havent offered therebanking services throughaddress necessarily to their clients needs. Once

internet, but they announced their clients on web-the long-distance payment instruments diversified

sites that they willoffer this kind of bankingand once the clients became aware of the benefits

activities in the future.of such services, the electronic banking servicescorroborated with the new technologies seduces

General, electronicbanking represents some kind of

the clients with their expected benefits: comfort, umbrella that covers the whole process throughpromptness and accessible costs. As an alternative

which a client can realize electronic bankingto the classic payment system, the fees attached to

transactions withoutthe need of visiting the bank.the virtual access are regularly smaller than the

Banking services through internet have, generally,fees of the classic services.

operational and transactional costs cheaper than

usual banking servic


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es. These banking services arentStrong development of the Internet and mobile

limited at only onephysical location (psychical site);telecommunications is fortunately also met in

sometimes there areInternet banks without them

Romania, so some of the industries can benefit ofhaving in a physical

way a branch office such as, forthe major advantages offered by the new

example, Telebank (Arlington, Virginia) andtechnologies. So, banking industry lunched on the

Banknet (UK). Moreover, in some cases, the banksmarket in the last years the electronic banking

web-sites arent restrained to realize their

services as a viable alternative for classic banking transactions withinnational frontiers and have theservices which assume the clients presence at the

capacity of performing transactions that involvesbanking desk.

large sums of money.In the last years, Internet became a popular

Against traditionalchannels through which bankingdistribution platform for electronic banking.

services are offered

through the agency of branchConsumers of the electronic banking had easier

offices, e-banking uses the Internet to deliver theiraccess to their accounts in every moment. Still with

clients traditionalbanking services, like: creatingthis comfort, the e-banking adopting rates were

banking accounts, funds transfer and electronicvery low in many countries. In Romania, of 39

payments of the bill

s.banks that operate in the Romanian market, 21offer their clients 28 long-distance payment

At first, the introduction of banking services withinstruments of which 14 are Internet Banking

remote access in Romania has active banks imagesolutions, 12 are Home Banking solutions and 2

reasons on Romanianterritory, even if they areare Mobile Banking solutions.

domestic banking ins

titutions or abroad unites. Thisway, banks were desi

red to be innovating and


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This paper aims to present the types of thewerent necessarily ad

dressing to a bank clientselectronic banking services in Romania

needs. Once the diversification of supply, ofcomparative to other countries, their development

instruments of payment with remote access and ofin the recent years, their benefits for banks and

the benefits of thistype of services were made,customers, their costs and risks and their risk

electronic banking services in collaboration with newmanagement.

technologies, seduces the patronage with the fact thatKeywords: electronic banking services, security they offer some unex

pected benefits convenience,banking risks, Internet Banking. promptness, accessible costs etc (Cechin, 2004).

Communications of the IBIMAVolume 8, 2009 ISSN: 1943-7765

Magdalena Rdulescu and Luminita Serbanescu43

As alternative to the classic system of payment, the One of the current problems of e-banking is beingfees attached to the virtual access are usually represented by the impact of these services tocheaper than the ones of the classic services (with traditional bankingplayers.

10% in case of BRD, 15% at Romextera, 25% atLibra Bank and till 50% at Raiffeisen Bank and at The fact that Internet revolutionized the economy is aHVB iriac. At BCR there are no differences from truth that can be proven by the following argumentsclassic services). (Danila, 2004):

E-bankingservices are much cheaper than

-A major part in convincing clients in using remote the ones unfold through branch offices orbanking services is being held by the inclusion of even throu

gh phone.demo applications on banking institutions sites E-bankingservices can be performed

-which simulates the mode in which transactions are without difficulty after the install of theprogressing. informatics applications.

The providers will be able to attract the

-Such modalities of onset of the patronage have the most significant part of the banks profits.

advantage of offering a plus of confidence for the The products will be distributed through

-


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potential user and at the same time, it keeps him individuallines. This way, traditional banksaway from the unpleasant situation of observing on will be abandoned and wouldnt performhis own expense that the banks application is payments anddiscounts.maybe too complex or too hard to use, and so the

initial expectations are only partial satisfied. The start of e-banking presumes very high prices.

Obtaining a confident brand is very expensive andThe main questions that we try to answer in this presumes costs for the commercial ad and plus highpaper are: which is the actual stage of e-banking costs for buying thetechnology needed.services development in Romania comparative tothe other countries worldwide, what are the main In the present, thesupervisors of the financial-factors that influence the actual development in banking market have

to focus their attention on theRomania and how can be the risks implied better impact of e-bankingon traditional banks, focusing onadministrate? things like:

Strategy-

The research methodology used here is mainly Clients level

-descriptive and analytical. We presented the results Finances and expenses

-of the studies realized by the Romanian Minister of Expenses w

ith the commercial ad-

Communications and Information Technology in Profit margins.

-this area, we analyzed and interpret the availabledata and we proposed some solutions for a better In England, for example, this market is supervised byuse of the electronic banking services and for Financial Supervisory Authority - FSA. In the viewreducing the risks implied by those services. of performing banking supervision, a banking law

was adopted and after that a new legislationSecond section describes the impact of the (Financial Servicesand Markets Bill) offers in pluselectronic banking services on the traditional ones legislative frame through which it promotes financialand the third part describes the access canals used system for a betterunderstanding. At the same time,by e-banking. The fourth part presents the law promotes the necessity of protecting the client; itmanagement and control risks in the e-banking area offers, at the sametime, the base for achieving theand the fifth section is about the types of electronic financial-banking ed

ucation of the client, whichbanking services in Romania and worldwide. represents a major instrument in the battle with the


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Section 6 shows the advantages offered to banks clients risks (Cetina, 2005).and customers and section 7 concludes.

And so, in England,there is no special regime for e-2. The impact of electronic banking on banking activity andthe supervisors consider that

traditional banking services they can authorize any new activity for e-bankingBefore deepen e-banking services, we must think at that satisfies the minimum standards of bankingthe revolution that e-banking could create in the discretion. Basel Committee E-banking Groupfuture. Actually, when its used e, we think at considers that they have torealize the internationaleverything that is electronic, wherever its the surveillance of the entire community through theInternet, television, telephone or all at the same distribution of a set of lines with a view to electronic

time. banking.There is necessary to offer an intern settlement

package for supporting the clients and the banks


44 Development of the electronic banking services in Romaniaeducation. In a global way, this kind of guidewould participate at realizing international At the moment of registration on e-bank, using

electronic services,

the client can get, in some cases,cooperation and would be a fundament forcoherence surveillance of e-banking activity. beside username and password, an application (on a

CD, through E-mail ordownloaded and installedSo it would facilitate the achievement of automatically at thefirst connection on the banksinternational activity of e-banking through the rise website), that is being installed on your PC andof clients confident in healthy banks that have as which you can have access at the offered services.

base different regimes of surveillance andsettlement. Electronic banking services can be obtained through

a mobile phone (Mobile Banking) in two modalities:The group has identified the next problems on Using TEXT messageswhich it should focus their activity in the future: Accessing the Internet through WAR

Authorization- protocol.

Prudential standards-

Transparency- It can be used specia

l mobile phones with the SIM


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Professional secret- (Subscriber Identity

Module) chip extended as aMoney washing function, resulted af

ter collaborating between bank-

and operator of mobil

e telephony which provides the3. Access channels used by e-banking machine ( with the extended SIM) or normal mobileE-bakings remote access can be done within many phones that dont requireany modification. In orderaccess channels, being based on fix phone, mobile to use Text messageswe must dial up a specialphone and on the personal computer. Through mobile number of thebank and for the WAP accessthese channels holds the dialog between clients and we must write an Internet addressee of the banks sitebanking service and are received messages and or of a mobile operat

or server, which is connectedfacts provided by the service. with the bank.The easiest and at the same time the most general Usually, through Textmessages are being receivedaccess channel at electronic banking services is different informationreferring at the balance onthrough fix or mobile phone, through which the current account and on the history of the lastclient accesses a special bank number that is transactions, and through WAP access are beinganswered by a human operator from the Call received sites with the same information at which itCenter of the bank this is a channel with vocal can be added general ba

nking information, viewingaccess. the errands, rates, current appreciation of currency,

the banks ATM networkand others.The client identifies himself, the operator lookshim up in the date base and verifies his identity, 4. Establishment, management and control risksafter which the client asks the desired service: in the e-banking areainformation or funds transfers and payments, which Determining risk is acontinuous process whichthe operator executes immediately using the access involves the followin

g three stages:he has at the central data base of SBIs of the bank. The bank is committed in an analytical

-process of i

dentifying the risks and whereTo obtain the services of e-banking through your possible, ofcommensuration them. In casehome computer you can choose between two risks cant

be commeasure, themethods: administration of the bank settles the

Wiring the PC to the Internet , using a potential ri

sks than could appear, steps tonavigator and accessing a specialized page from the follow in these cases and the impact they


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banks site could have over the bank.

Wiring the PC that has a modem and an The settlement of the risk means for the

-application provided by the bank, directly (through bank the determination of the bank

dial-up) at the banks server (PC Banking). tolerance, thing that means the settlement of

loses that the bank can afford in case ofThis last method is less used in the present but is some unexpected events.more secure and it addresses especially to The administration of the bank can compare

-companies. the tolerance of the risk with the settled

magnitude in

case of lose to see if that riskInternet Banking is being used ore and more often can be tolerated or not.especially because it can take place in conditions ofhigh safeness and can offer the complete range of After setting the risks and their tolerance, thebanking services. administration of thebank must administrate and



control them. This part of the risk management

includes activities like (Balaure, 2000): In order to reduce the risks listed it is required for all

e activities to regulate, establishing an adequate

Coordinating internalinfrastructure and a

n indication of which mustcommunication,

authorize and oversee these activities. Like any trade,

Introduction of protection measurese-commerce needs a s

pecific infrastructure.against risks from the outside,Control and management of them,

In this case, it consists of three elements: thermal

Instruction of the clients in using theinfrastructure, inte

rface with the essentialservices etc.

components of classical and specific legal system.Banks increase their ability in monitoring and Thermal infrastructure consists of the

hardware,software and network

managing internal risks in any activity when all


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these procedures are established by and are to grasp communications. It actually is and whichthe entire staff.. resulted in the emergence and development

of electronic commerce.The management and control risks include: It is also

necessary to interface with themajor syst

ems of classical trade. The keyPolitics and security measures .Security

-element is

the bank, because anyrepresents a combination of systems,

commercialoperation is a means of money.

practical applications and intern control ,The insert

of a bank in an electronic tradingused to take cover of the integrity,commerce i

mplies a connection between theoriginality and confidential of the dates

bank and the user, through which can be

and operational procedures. Securitycarried ou

t operations in real time.politics announce the intention of the

To createthe legal framework for the

firms management to back up themember cou

ntries of the Europeaninformations security, gives an

Community,the European Parliament

explication about organizing the securityadopted a

directive that regulates thisof a bank, specifies the main directions

specific area of interest, current exchange

that define the tolerance of a security risk rates, thenetwork of ATM of the bank and

in a bank. Policies outlines theother.

responsibilities for moderation, andimplement measures to strengthen securityinformation, it may establish procedures 5. Types of electron

ic banking services in thefor assessing the results of policy, to world and in Romaniastrengthen disciplinary measures and for

a. Mobile bankingreporting security violations. Security

Mobile banking is aservice which permits accessing

measures include encryption, pass


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on more financial-banking information using only

wording, detect viruses, etc.the cell phone, with

out going to the bank, at a bancInternal communication. Leadership must

-

mat or using the Internet, at day and any hour. Some

communicate with staff Attributions keyof the Romanian bank

s offer the option of obtainingas the bank electronic systems and

some information about card account.

electronic money intended to support thegeneral goals of the bank. At the same

More specific you can find out the sum of money on

time, technical staff must clearly your card, the last50 transactions that have been

communicate how management systemsmade using the payme

nt instrument, there can beare designed to work, the strengths and

realized funds transfers between debit cards.

weaknesses of the system. To ensureadequate internal communications, all

Mobile Banking is aservice that allows access to

procedures must be provided in writing. Inmore financial infor

mation using only your mobileorder to limit operational risk, the need to

phone, without goingto the bank, at an ATM or

adopt a common policy on continuingusing the Internet,

no matter day or hour.education of personnel with knowledge of

Specifically, you can find the amount of money on

technological novelties. Evaluating the card, last fivetransactions that were carried out

products and services before they can bewith the help of pay

ment may be made transfers ofplaced on a large scale, may limit the risks

funds between accounts, debit card, receive alerts for

of operational and reputation.all transactions con

ducted at bank machines andmagazine. Mobile ban

king services can be accessedTesting validates that the equipment and systems

through messages wri


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tten protocol or WAP,and produce desired results. Pilot programs or

depending on the type of terminal that we possess theprototypes can also aid in the development of new

user. Access to information on the account can be

IT applications.Communications of the IBIMAVolume 8, 2009 ISSN: 1943-7765

46 Development of the electronic banking services in Romania

Especially, for electronic banking services, the riskobtained only from the telephone number that was

associated to the product and the electronicstated in the signed contract for this service with

distribution channel

is larger than consumer goodsthe bank, and access to services-type browsing, theand so it increases t

he importance of such innovatinguser must be authenticated by user name and

character. Ensuring security and confidentiality mustpassword.

be assured before anybanking activity which regardsMobile phones of tomorrow wouldnt be just

important informationtake place.

simple banking terminals; they tend to become acomplete centre of communication, with functions

Of all the factors mentioned above, the relativethat could replace cash transactions.

advantage, compatibility, testing possibility and

observance are positively correlated to adoptingAs an Internet access portal, mobile phones are

innovation, while thecomplexity and risk are

destined to boom the way in which banking negatively correlated.transactions shall take place.

Relative advantage refers to the extent to which anUsing new technologies, safer and easier to use,

innovation is perceived as being better than the ideamobile banking becomes reality and WAP

of a product that itreplaces. The measure of the(Wireless Access Protocol) is the key to this reality.

relative advantage isoften expressed throughStill, of all the commercial applications which had


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economic profitability, social prestige, saving timebecome possible, the attention is focused on mobile

and effort, immediatereword or decrease discomfort.banking.

In the case of Mobile

-Banking relative advantage isThe experts are waiting for mobile terminals to rule

perceived related tothe element of mobility for thethis market, replacing PC

s as the main transactionnew medium of distrib

ution (for example, use thismean. Having the possibility to directly access

service to consumerswhile walking on the street).clients, the new mobile access solution in virtue of

- Complexity-unfoldin

g banking mobile phone isWAP promises to offer an alternative workingabout reverse consume

rs experience regardingchannel for banks and savings banks.

technology in general.

-Compatibility refersto the extent that an innovativeThis application shall allow WAP mobile terminals

channel, as the mobile phone is compatible with pastowners to sell or buy shares, to check their shares

experience of the individual, and values seem to haveportfolio, to receive diagrams, news and many

a significant impacton adopting availability.others.

-Visibility-describesthe extent to which an

innovation is visibleto other members of the socialThe WAP technology (WAP, with its navigation

environment. Intangib

ility of the banking servicesmicro programs shall constitute the mobilecan create some probl

ems, even if in case of Mobileticket for connecting to the Internet. It is already

Banking-discovery, the distribution of the service-possible to learn about stock exchange shares or to

mobile phone - can improve the physical evidenceplace orders from WAP terminals to the German

innovation.brokers company Consors) is about to change the

-The possibility of testing the ones that will bemobile phone into the main commercial instrument


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allowed to experimentinnovation will feel moreof the future.

comfortable with these services and more willing to

adopt. In other words, if consumers are allowed to try

To support our affirmation, according to whichinnovation, the fear

of the unknown and the inabilitymobile terminals are the real business instruments,

of use disappear.are modern mobile banking services, made throughmobile phones.

b. Tele-bankingThis service permits

the reception of information,Regarding the mobile phone number of users, thishas reached 14.900.000 on the 30th of June 2006, necessary from any an

gle, at distance, through phone. For this is enough to phone at informationalwhich represents a growth with 11,3% compared tothe 31st of December 2005. Consequently the centre of the bank.mobile phones services penetration rate has

Tele-banking servicegives the following services:increased, at the same date, with 7 percentagepoints compared to the end of 2005 (according to Receiving information about the current rateThe of exchange of BNM and of the subsidiaries

report regarding the electroniccommunications sector within Romania for the 1st of the Bank.of January the 30th of June 2006 published at the Receiving information about the currentend of 2006 by the National Authority for sold in theaccount or about the other days

and of course when receiving a fax.Communications Regulation).


Magdalena Rdulescu and Luminita Serbanescu47Receiving information about banking using mobile phoning

is very high, and the methodsservices: about credits, deposits, banking of payment and bankin

g services arent so wellcards, transfers with money, services known and used by tho

se people.payments.Receiving information about the bank. For the Western Europ

e it has been estimated thenumber of users to 49

9.000 this year and for North

Telebanking has entered into force in the 70

s once America one million users. Services of this typewith the mechanization of payment instructions and will not know too man


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y users in these parts of thesending information regarding accounts current. world, especially because of the incertitude that theyWithin this system the data is changed through files have when it comes tothe security of their personaltransfer regarding credit transfer orders, debit dates (Wenniger, 2004).

transfer or cheques or through introducing onlinetransfer instructions. c. Internet banking

The Internet has become a very popular platform ofIt is accessible to economic agents who have large distribution in the last years for electronic banking.payments to make and who have an automatic Electronic banking consumers had been offered anintegrated accountability system, which allows easier access to their accounts 24 hours of 24, seventhem to have an electronic link to the bank and in days a week. Even though there is such convenient

this way it is made transfer instructions exchange way, electronic banking adopting rates in mostwithout using papers. countries had been very low.The number of clients who shall make payments It is appreciated that, due to recent Internet progress,and who shall use phone banking shall reach in electronic banking services could significantly2011 to 103,9 million worldwide. For this year, the extend. Decreasing the computer prices, togethernumber of such services users shall only be of 32,9 with Internet services quality, of large operationalmillion. The payment methods made with mobile speed, offered to mor

e accessible prices, throughphones are defined by paying some products or cable or telephone connections; make possible aservices using mobile technology (SMS, wireless fundamental change ofordering and operatingapplications WAP, etc.). So far, SMS is the most monetary transfers.popular and dominant payment method, andGartner analysts are expecting things not to change The evolution of these services shall depend also onuntil 2011. the banks technical ability and setting the procedures

to ensure participant

s protection. The distanceMobile payment methods can bring high material payment instrument ofinternet banking type is thatopportunities to couriers and, eventually, to banks, payment instrument having distance access which isif they are properly used. based on Internet technology (World Wide Web) and

on issuers of the informational systems.Nevertheless, these payment services are moresuitable for couriers, than for bankers. All the Internet banking represents a package of solutionssame, banks can justify their investments through intended for the remo

te interaction between clientthis payment system, if they use mobile services as and bank, which permit clients to access their


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an extension of the already used channels. At the information to accounts and generate transactionssame time, the Gartner research director noticed through an Internet connection.that mobile payment method is easier to apply onemergent markets than developed ones, where they Internet banking is aservice available to all persons,

are seen, especially, as already existent services through whom you canmake banking operations 24alternative methods. hours a day, seven days a week, from any part of the

world where there isan Internet connection, offeringOf all the regions worldwide, Asian Pacific area mobility and comfort.has the most users to mobile payment chapter (28million in 2008), owning 28% of the total number On international planthere are at least 2 modes ofof users, revealed the Gartner research. onset of banking services offered by Internet:

The most important two reasons for which the 1. The model exclusively through the Internet, inAsian zone is lieder are the following: which a bank is deploying the activity exclusively

online, without offering classic banking services Mobile payment services was launched

within a branch office or an agency. This kind ofrecently in this part of the world and so attracts the

institutions cant be found in the Romanian bankcuriosity of a large number of people;

landscape. Some countries are very developed in Asia,like China or India, where the number of people


48 Development of the electronic banking services in Romania2. The model of traditional banks, that offers to banks. Internet bankingis for both individuals andthere clients classic services and also electronic legal entities as aninstrument of payment without the

cash, thing that help

s customers to save time andones with remote access.money because they no

longer have to go to the bankand can perform their

normal operations from theThe main things that clients can do through thehelp of the instruments of Internet Banking are: comfort of their homeoffice from any computer 24

hours a day in the country and abroad. Of the three

The possibility of opening accounts and-

distribution channelsof electronic banking services,

credit cards;


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Internet Banking willhave the largest share in the

The possibility of transferring funds-

future, followed by Mobile Banking due to

between the accounts of the client (card,

increasing number ofmobile users (Vasilache, 2004).

deposits, current accounts);The possibility of realizing payments in

-Nevertheless, the ban

k branch, especially inany currency using, inclusive the

Romania, is still themain connection way between

exchange;banks and their clien

ts, newer distribution channelsFinding out the details about the situation-

such as internet banking or mobile banking being far

of the personal accounts.from being well appro

ached by clients. This isactually the result o

f a market research made by GFKTo ensure a high level of safety, Internet-type

Romania and accordingto which internet banking is

services are developed on infrastructure thatone of the most reduc

ed used of financial servicesrespects the international standard of safety on

within Romania.information. From the moment of connecting theauthorized clients, any date exchange is made

Only 1% of the usersof financial services withinunder a secure protocol, using keys and encryption

Romania currently useinternet banking. Most of the

algorithms. Some banks available to customers users of financial services use current accounts in leispecial devices physic security attached to the

(39,54%), term deposits (29,77%) and cards forcomputers.

taking cash from ATM

s (27,36%). According to thequoted source, per en

semble of the over 15 yearsThe authentication of a client can be achieved on

population, 64,41% of

the persons don

t use anylevels:

financial service, 14


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% use current accounts, 10,5% -User name and password

-term deposits and 9,7

% - cards for taking cash fromDigital certificates (for example the

-

ATM.electronic signature used by somecommercial banks)

Still, near the bankbranch, an important role in

Hardware tokens (strong authentication-

promoting bank products and services, but also for

mechanisms).making transactions,

shall have, according to the

market researches, automatic banks or call centersInternet banking systems besides the fact that can

(phone lines where clients can get informationbe accessed from any corner of the world, provided

regarding the bank offers and can make bankingyou have an internet connection, does not require

operations). Regarding the bank

s distributionrelocation specialists bank for the connection and

channels, we think th

at the main shall be theassembly but only the existence of a personal

branches and agenciesnetwork. And internationally,computer that the client can use.

after a few years inwhich it had been thought that

the Internet shall replace the network, the marketTransactions take place online and in real time

reconsidered the roleof bank units.

enjoying the same degree of protection granted bythe bank

s own system. Security of transactions6. Advantages offered

to banks and customersconducted via the Internet is a main aspect thatshould interest the client. At Banc Post and HVB-

Advantages offered tobanks:iriac Bank the client has provided an additional

Transactions and information are protectedsecurity device named Digipass, its identification is

at the high

est security standards currently.based on the following dates: Pin code, name of theclient and a bidirectional authentication assured by Transactions ar


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e done in real time.an exchange of key security between the bank and Almostunlimited possibilities forcustomer. expansion:Interface type Web Services, that

allows automatic access to Internet Banking

Another security measure is valid for a single functions of accounting applications, ERPsession of the password recognition, a new and portalsfor large customers, e-commerceconnection being generated to another sequence of applications for on-line sellers, electronicpasswords. In the vast majority of internet banking transfer ofmoney etc.services for individuals are offered at no charge by


Magdalena Rdulescu and Luminita Serbanescu

49 Internet banking information can be

May be established packages of services

exported in several types of files: PDF,

depending on the category of clients suchXLS, and HTML

.as: individuals and legal entities.

Ability to import payment orders simple and

System is implemented, heard and

direct from Treasury files: XLS or

functional now.predefined DB

F.Full interoperability.

Avoid stress,

crowding and bureaucracy.System is configurable and allows for

Increase business customers by making

easy operation with the existing central online paymen

ts to suppliers on time andsystem (core-banking).

with a good organization funds.

System is configurable and allows

Information access even in the moment

operation in banking load-technology at where is need

ed, by consulting the


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any level: server web, placation servers ortransactions

in a real time.date base server.

Decrease thetime of disconnection between

Implementation support for negotiating

clients and b

eneficiaries of payments as athe exchange rate exceeding a certain

result of trust between the partners and

value, submitting an application for credit,managers can

focus on business withoutexchanging messages between client and

take care payments and incomes.

bank operator and customer notification ofthe result of analysis of demand for credit.Security at the highes

t level:Low cost of implementation and maintenance The solution permits to select items for(TCO) (Odobescu, 2003): customer authentication based on costs.

Besides nameand password we can opt for

Operational costs dedicated to processingeToken USB wi

th digital certificate device,

transactions are reduced and workers areonly for digi

tal certificates or tokencredited reduced operations for the benefit

hardware VASCO/DIGIPASS devices.

of customers calling to them. Security is incre

ased through multi-level Licensing policy and gradual

architecturethat allows security levels

implementation, Internet Banking between the firewall equipment.

Licenses can be used in an outsourcingregime, without initial costs, based on a Ensure non-repudi

ate, authenticity andservice contract. confidentiali

ty through digital signaturetransactions

transmitted by clients. The solution is scalable. To increase

processing capacity is sufficient to add The communicationclient-bank is crepitated

additional servers. using SSL 3.0128 bits protocol.

Bank-client authe


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ntication is done viaAdvantages offered to customers: digital certificates issued by the bank and

Reducing costs through the benefit of recognized, andfor the exchange of keys is

lower commissions and use the time used for RSAencryption algorithm with key

gained in carrying out financial of 1024 bits.operations. Communication mes

sage is encrypted using Access customers may be from any the 3DES algori

thm with key of 128 bits.location with Internet access both in the USB eToken or DIG

IPASS devices arecountry and abroad. protected by

a PIN code The product has a friendly interface with Access is based on

a username and athe customer that makes it very easy to password for

access use. Offers the possibility of task deployments Technical user requireme

nts are minimal andin an accountant department depending on involve:components of the company. a PC min

imum Pentium II 450 There is the possibility of consignment MHz,

64MB RAM.documents of more authorized people Internet

access by LAN network orbefore making itself a transaction. a m

odem and telephone line

Large companies can manage multiple Windows 98or better, Internet

branches or subsidiaries. Explorer 6.0 or better.

Documents obtained after the transactionsare available in PDF or HTML format can Previous experience wi

th technology, in particular onbe sent to clients via e-mail. computers, is an impor

tant factor of adoptingthe Internet Banking.

The consumer experience onCommunications of the IBIMA

Volume 8, 2009 ISSN: 1943-776550 Development of the electronic banking services in Romania

banking activities, along with continuing the processhow technology is greatly to better understand new

of measuring actual performance.technologies and ramifications of themselves.

-consider the effect that the legal provisions

conduct e-banking canhave on risk exposures, as

7. Conclusionswell as proper manage

ment of these risks.


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E-banking can be offered, mainly, through twoways. First, an existing bank that has physically

One of the most important challenges for Internetoffices, can establish a website to offer online and

Banking refers to consumers security. Insurance

electronic banking services to its customers ornecessity has proven

to be one of the biggest barriersthrough Internet. One of the main problems that e-

in adopting InternetBanking. Demographic factorsbanking is facing is the security. Without clients

influence was considered to be significant for theconfidence in the security of such services, they do

adoption of the Internet Banking. Sex person is also

not want to use a public network like the Internet, considered as an important factor of adoptingand to view financial information online and to

Internet Banking. According to the studies, theperform financial transactions. Some security

adoption service is dominated by male.threats are theft and violating individualinformation privacy. Banks using e-banking is

Developing a strong Internet and mobile

offering more ways to ensure a high level oftelecommunications di

d not shun, fortunately,security (Golosoiu, 2003):

Romania, such as a series of industries can benefit- identifying and authentication: using your

from major new technologies. Thus, bankingusername and password to access accounts;

industry has come inrecent years with a new market:

- coding: even if the information is intercepted, the the launch of electronic banking services, anhacker was not able to view a firewall (barriers to

alternative to classic banking services, which involveprotect their servers and databases of banks).

the customer at the bank counter. Electronic banking

services are dividedinto three categories: InternetIn general, electronic banking services can be

Banking, Mobile and T

ele-banking Banking. Theseclassified into two categories: providing

work permit realizing


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of banking transactions usinginformation and making transfers of funds and

computers connected to the Internet (Internetpayment.

Banking) or phone (Mobile Banking).

a) The bank provided the bank are electronicThus, through the Int

ernet Banking, the user has theinformation on the bank account and financial

option of doing banking operations in lei and/orinformation-general banking, such as the exchange

foreign currency, online, from a distance. In addition,rate, interests or commissions current network of

through an informatics application provided by the

ATMs, the general utility. Information on account bank, can perform a series of banking transactionsrefers to the current history of transactions made in

without the need movement from bank headquarters.account statements of account status. Using

Through mobile banking, banks offer customersInternet Banking service is influenced by reference

financial and bankinginformation, private or public,groups of consumers (family, friends, etc.). Even if

or the opportunity tomake some transactions,you use this service initiation was determined by a

directly from the mobile phone. This service isspecific group of reference, its continued use

provided by the bankin partnership with one or moredepends on other factors, mainly consumer

telecommunications operators to provide mobileperception of the technology.

stone Romania (Orange, Conenex and Zapp).b) Transfers of funds in the account may be inter-

The number of users of payment instruments withbanking transfers (the receiver is in the same bank

remote access doubledduring the year, a Ministry ofaccount). Payments ordered may be made by an

Communications and Information Technologyinterchange (between banking clients), by a bank or

(MCIT). Of the 39 ban

ks active on the Romaniananother by the Treasury, in the domestic currency

market, 21 available


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to customers 28 instrumentsor in other foreign currency. So it can be ordered

Payment with remote access, 14 of which arethe sale or purchase the foreign currency. A

solutions for Internet Banking, 12 Home Banking

company can order the wages to its employeesand Mobile Banking 2

received opinion infrom an employee of the company to a list of

compliance with the order 218/2004, following thatproviders of employees accounts.

on the basis of the same legal act be issued notices to

10 other Such solution after evaluating theEven if the e-banking activity is risky, there are

documentation submitted. Over 2 billion euros andalso opportunities such as tax benefits and potential

over 230,000 billionlei were traded by bankscustomers, banks and for those regulating the field.

instruments of payment online. In present, there areFrom the banks viewpoint, they should:

almost 28,000 users of at least one type instruments

-have a clear strategy and well distributedInternet banking, hom

e banking or mobile bankingto kick off the top and to consider the effects of e-



front of 14,000 in the second quarter of last year, [10]. Order of Ministryof Communication andsaid the Minister of Communications and Technology no. 218 on 14th June 2004 on theInformation Technology. procedure for approvalof payment instruments with

remote access, such asInternet banking applications,The whole range of instruments of payment to the home-banking or mobile-banking.remote allow the user direct access to its funds, [11]. National Bank ofRomania-regulation numbermaking payment or transfer of funds, with these 4/2002 on transactionsconducted through theinstruments can be achieved information regarding instruments of electronic payment and relationsaccounts and operations made by the user. between participants inthese transactions.

[12]. www.mcti.ro

[13]. www.bnro.ro8. References

[14]. www.efinance.ro


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[1]. Balaure,V. (coord.), Marketing payment, [15]. www.bis.orgUranus Publishing House, Bucharest, 2000, [16]. www.europa.eu.intpp.204-300. [17]. www.fsa.gov.uk[2]. Cechin Crista P., Banks and banking [18]. www.linkmagazine.rooperations, Mirton Publishing House, Timioara,2004, pp.235-267.[3]. Cetina, I., Financial Banking Marketing,

Economic Publishing House, Bucharest, 2005, pp. Copyright 2009 by the International Business138-156. Information ManagementAssociation (IBIMA). All[4]. Danila.,N., Retail Banking payment, Expert rights reserved. Authors retain copyright for theirPublishing House, Bucharest, 2004, pp. 43-89.

manuscripts and providethis journal with a[5]. Golosoiu-Georgescu Ligia, Business of

publication permissionagreement as a part of IBIMA

banking, ASE Publishing House, Bucharest, 2002, copyright agreement. IBIMA may not necessarilypp. 127-165.

agree with the contentof the manuscript. The[6]. Golosoiu-Georgescu L., Means, methods andinstruments of payment, ASE Publishing House, content and proofreading of this manuscript as wellBucharest, 2003, pp. 96-112. as and any errors are the sole responsibility of its[7]. Odobescu, E., Modern banking marketing, author(s). No part or all of this work should be

Sigma Publishing House, Bucharest, 2003, pp. 122-copied or reproduced in

digital, hard, or any other149.

format for commercial use without written[8]. Vasilache D., An introduction of electronic

permission. To purchasereprints of this articlepayments-payment, Rosseti Educational Publishing

please e-mail: [email protected].

House, Bucharest, 2004, pp. 308-335.[9]. Wenniger J., The emerging role of banks in e-commerce, Federal Reserves Bank of New YorkCurrent Issues 6, number 3, 2004, pp. 45-48.
