Tt nhóm 3 e banking management PDF

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Welcome to our presentation. My name is..... and I am delighted to be here today to talk to you about our topic “ Overview of E-banking management”. Firstly, I want to introduce my group – group 3 including 7 members: Linh Chi, Minh Hòa, Hiền Lương, Trương Phương Thảo, Bảo Anh and Quốc Phú and Anh T...

Description

Welcome to our presentation. My name is….. and I am delighted to be here today to talk to you about our topic “Overview of E-banking management”. Firstly, I want to introduce my group – group 3 including 7 members: Linh Chi, Minh Hòa, Hiền Lương, Trương Phương Thảo, Bảo Anh and Quốc Phú and Anh Tuấn. In recent years, customers of banking corporations are increasingly using technology and direct channels to consume banking services. Expanding EBanking services including banking via the Internet, telephone and using (ATMs), makes it possible to reduce the prices to customers, and makes it easier for them to manage their activity. However, besides these benefits of E-Banking, increasing the scope of banking services through technology can make banking corporations have to deal with many problems such as how to satisfy their customers, some major risks (security risks, cybersecurity risks and privacy risks,...); or even lose their profit because of ineffective management. Therefore, banks need to identify their management framework, adapt and reinforce their technique to the advanced technological environment and update it regularly. (đoạn đỏ là giới thiệu các phần trong bài tt) Consequently, the main purpose of this report is to have an overview about the management of Electronic banking in modern life, by identifying the definition, the scale of managing or their principles and regulations. Furthermore, we will provide some ideas related to the current situation of E-banking in Vietnam, some challenges and opportunities that Vietnamese bankings have to deal with. After all, there are recommendations for management systems, how to operate effectively and overcome difficulties, because in a developing country like Vietnam, the development of E-banking is not only an opportunity or a trend but also a significant challenge. Firstly, I’ll start with some general information “Why is E-banking management”. As you know, E- banking management responsible for planning and

implementing all the Bank’s Electronic Banking offerings. Generally, managers of e-banking help to develop policies and procedures for the e-banking process in order to ensure compliance with established standards and regulations. Moreover, they will lead, manage and hold accountable Cash Management Sales and Support staff and manage all aspects of electronic banking services (online, mobile, remote deposit, wire transfers, debit and credit card programs. Must understand client needs for electronic banking, manage budgets, and recommend changes to offerings to best meet requirements. Next, I’d like to move on to the next part, the management scope. Credit institutions (such as commercial banks) may conduct e-banking activities within the scope of their activities defined in their establishment and operation licenses and in compliance with their charters. Now, the entire banking structure has been changed due to widespread internet technology. By using advanced electronic technology, the banking management is not only smart and convenient, but it also has a much broader scope:  Firstly, from banking to individuals, E- banking started to extend to business banking. Now, online banking can allow individual customers or organizations access to its service 24/24 hour, retrieve any information, and make a certain number of transactions easily. It is also affordable for both large and small organizations. A new way of marketing financial services was created.Electronic banking is now used in many aspects of business, including commerce, trade, import, export, and the purchase and selling of commodities.  Secondly,

continuously

enhancing

security,

safety,

confidentiality,

transparency in fee policy and fee structure to help customers fully

understand, feel safer, more convenient and more comfortable when using the services.  Thirdly, effective E-banking requires that management has up-to-date and timely information in an understandable format. Any improvements in this area can lead to significant benefits in operations and the marketing of Eservices. For example, by promoting card payment services or the conversion of chip cards, updating apps and websites, facilitating the connection with other industries and fields to provide a variety of convenient payment products and services  Lastly, gradually promoting changes in people's habits and awareness about non-cash payment in business transactions, satisfy their needs because customers are the primary factors helping banks improve their management system. Now, let’s move to the next part. It will be presented by Minh Hòa 3. Principles and regulations Hi everyone, I’m Minh Hòa and now I want to describe a little bit about the principles and regulations in E-banking. Any type of E-banking should include the principles and regulations in order to enable banks to protect customers’ information, reduce fraud incidents, and manage e-banking related risks as also to minimize the number of complaints from e-banking users. There are numerous of rules, so I will discuss some main principles that are generally known. Firstly, about…..  About “ Board and Management Oversight” - The Board of Directors and senior management should establish effective management over the risks associated with e-banking activities. Senior Management and the Board of Directors of each bank should set clear

direction and provide necessary management support to security initiatives for e-banking. -

They should also review and approve the key aspects of the bank's security control process. Senior Management is responsible for matching security controls to the overall needs of the business and therefore has to regularly review and approve security policies, processes and new initiatives.

- Lastly, They should establish a comprehensive oversight process for managing the bank's outsourcing relationships and other third-party dependencies supporting e-banking. If banks rely on third party, management must understand the provider’s information security program to effectively evaluate the security systems’ ability to protect the bank and its customer data. Banks are still responsible for the weaknesses of their systems; this applies especially for outsourced solutions.  About Security Controls: - Banks should take appropriate measures to authenticate the identity and authorisation of customers who conducts business over the Internet. For the purpose of safe and sound banking, it’s essential to confirm that a particular transaction or access request is legitimate. Banks have to use reliable methods for verifying the identity and authorisation of new and existing customers. - Banks should ensure that measures are in place to promote adequate segregation of duties within e-banking systems, databases and applications.. Banks are required to set up internal control measures designed to reduce fraud risk in operational processes and systems and to ensure that transactions and equipment are properly authorised, recorded and safeguarded.

- Banks should ensure that proper authorisation controls and access privileges are in place for e-banking systems, databases and applications. Non-privileged access to e-banking systems (databases/applications) can lead to high impact incidents. Thus banks must have appropriate access controls in place. - Banks should protect the data integrity of e-banking transactions, records and information. Failure to maintain data integrity can expose banks to financial losses as well as legal and reputation risk. With respect to the high risk exposure, banks should plan and introduce appropriate organisational, procedural and technical methods which ensure that the integrity of financial and transactional data is assured and maintained.  About Legal and Reputational Risk Management: - Banks should have effective capacity, business continuity and contingency planning processes to help ensure the availability of e-banking systems and services. Banks are expected to develop plans for maintaining or restoring business operations in appropriate time scales following interruption to, or failure of, critical business processes. All contingency plans should be part of a consistent business continuity framework. - Banks should develop appropriate incident response plans to manage, contain and minimise problems arising from unexpected events, including internal and external attacks, which may hamper the provision of e-banking systems and services. They should introduce a special section on their websites for such purposes. - Banks should ensure that adequate information is provided on their websites to allow potential customers to make an informed conclusion about the bank's identity and regulatory status prior to entering into e-banking transactions.

Now, I’d like Linh Chi to move on to the next part: The Overview of Ebanking management in Vietnam 4. Overview of E-banking management in Vietnam Hi everyone, I’ll be the next person presenting about our topic. Now I will turn to another problem by dicussing about The situation of managing E-banking in Vietnam. a. The current scenario of managing E-banking in Vietnam In the second quarter of 2020 (Q2/2020), overall visits to shopping apps in Vietnam reached 12.7 billion, growing 43% quarter-on-quarter and surpassing that of most other Southeast Asian countries. Digital payments have also significantly increased this year amid the COVID-19. In Q1 2020, electronic payments increased by 76% with the total value of transactions jumping 124% compared to the first quarter of 2019, according to a report by Vietnam Times. By the end of April 2021, online payments via internet banking transactions increased by 65.9 percent in quantity and 31.2 percent in value; payment-enabled mobile phones leaped by 86.3 percent in volume and 123.1 percent in value; QR code payment surged by 95.7 percent in quantity and 181.5 percent in value over the same period in 2020. These rapidly changing customer behaviors are forcing banks to ramp up their electronic transformation, many of them are trying to improve products and services as well as update new management systems, to satisfy their customers’ needs. For example, Mr. Nguyen Chien Thang, Director of BIDV Digital Bank, said that electronic banking is one of the three pillars of BIDV's development strategy to 2025 and vision to 2030. Accordingly, BIDV will focus on digitizing distribution channels, transaction systems, interacting with customers...to move towards comprehensive digitalization.

Not only BIDV, but many other banks have been racing to develop ebanking. In fact, each bank has a different orientation to e- banking, depending on its customers. If Timo Digital Bank under VPBank is at the forefront of the e banking revolution with the policy of fewer branches and transaction offices, TPBank

has

a

strategy

of

density

coverage

with

automatic

ATMs

(LiveBank)...Nam A Bank also launched a modern multi-device integrated Open Banking digital transaction space to help customers conduct multi-channel transactions on just one application. Moreover, The government has also been pushing for greater development and adoption of technology within the banking and financial sector. Pham Tien Dung, Director of the Payment Department of the State Bank of Vietnam (SBV), said that in the first months of 2021, payment-related activities in the economy still took place transparently despite the impact of the Covid-19 epidemic. In addition to the legal framework and policies in payment-related activities which continue to be improved for the application of new technologies, free-of-charge payment services offered by the State Bank and other credit institutions have met people's demand for online payment. And What are the opportunities and challenges we are facing with? b. Challenges and opportunities



Opportunities:

- Firstly, for customers: As you know, Vietnam has recently stepped into digital information, which allowed more people to approach online-banking, especially those living in rural areas. It is clear that the form of non-cash payment is gradually replacing cash, customers can conduct transactions with the banks via smartphones, or ipads, laptops, and even instant payment through QR code. This helps save more time, lower cost transactions, and increase comfortability for many people in modern times.

- For banks: + Risk management and records management can be reduced with the digital signatures in the bank. The advent of digital signatures has formed a new solution for businesses in general, including the banking-finance community, This method is expected to improve work efficiency, cut costs and time for banks. In the future, when this form of contract will be popular, the contract management process will have a dramatic change and help promote better work performance than the traditional method of signing contracts on printed paper. + Because E-banking helps reduce transaction cost, as a result, it can lead to an increase in banks’ profit. This event not only motivates the operations of banks but also contributes to the economy in Vietnam. - And lastly, In terms of supply in the banking market, the number of service providers in Vietnam has continued to accelerate the adoption of digital technology in their operation to meet the demands of non-cash payment and business digitization. All telecommunication units have payment services or telephone cards on the internet. Thus, Vietnam's market with large population size, and the high rate of telephone and internet is a potential market for electronic banking.

 About the Challenges: - Firstly, The fourth Industrial Revolution and the Fintech trend promote competition, attracting a large number of companies providing technology solutions. However, this trend is also posing great challenges to the banking community as Fintech companies compete to attract customers and expand market share, especially in online lending transactions. Therefore, if commercial banks do not actively apply new technologies and invest in modern equipment, they will lose market share and lose customers.

- Secondly, although the trend of technology banks has spread to Vietnam, the digitization level of Vietnamese banks is still considered as stubborn and slow, compared to other developing countries. The biggest problem is a lack of talent and qualified human resources for management of E-banking. Another is the problem of limited capital and budget for digitalization, and investment and application of new solutions and technologies. Only a few banks have made significant investments in this field while most other banks are taking slow cautious steps, depending on the annual distributed budget. - Thirdly, there is still a legal gap in the financial system in Vietnam, especially in the operation of e-wallets, Mobile Money. Therefore,it is urgent to create a sufficient policy, in order to deal with financial technology problems, limit risks for customers when participating in the use of digital banking technology services, and reduce the threat of hackers at whichever level of security. c. Recommendations for the management system in Vietnam As you can see , E banking is carried out by a series of transactions in diverse environments between the end users and the systems. As a result, from the threats listed previously, it became essential to design and to develop models of effective security in order to offer online safe access. In order to promote the development of e-banking services, in the coming time, Vietnam needs to implement the following solutions:  Firstly, the regulatory agency needs to build and complete the legal corridor for electronic payment activities, to meet the requirements of new business models and products and services on the basis of information technology. It is necessary to improve the system of legal documents in the fields of digital signature authentication and regulations on electronic savings products.  Secondly, relevant agencies such as banks, financial institutions, trade centers,,businesses need to build a network of payment acceptance points.

Electronic accounting (from supermarkets, hotels, restaurants, to grocery stores…) on a nationwide scale. Building a centralized electronic bill payment system (from healthcare, education, public services, to electricity, water, television, telephone...) and connecting to all tax authorities in the center. national as well as local.  Thirdly, soon pilot the service of using telecommunications accounts in payment for low-value services, thereby contributing to the development of non-cash payment and increasing access to and use of payment services. in rural, mountainous, deep-lying and remote areas.  Fourthly, effectively exploiting the Website, marketing, advertising, consulting... creating favorable conditions to attract and develop potential and new customers. Websites must have diverse and rich content, information is updated regularly. It is hoped that in the trend of modernization, e-banking services will soon be applied, accepted and become a familiar means for each organization and individual participating in banking services because of its convenience, economy and efficiency.  After that, besides investing in the development of payment infrastructure, the banking industry needs to continue to research and apply modern payment technologies and methods. Monitor payment activities to ensure safe and efficient operation; strengthen the work of ensuring security and safety

in

electronic

payments.

Promote

financial

education

and

communication programs to improve people's knowledge, skills and accessibility to financial products and services. And then, for banks, it is necessary to promote the development of internal security policies, focusing on developing more advanced security authentication utilities, functions and methods.

 Finally, banks need to have forms of training, recruitment and good remuneration for human resources with expertise in banking technology. At the same time, it is necessary to actively develop and promote new electronic products, simplify service registration procedures, and support customer care when using e-banking.

III. Conclusion Through this report it is clear that E-banking management plays an important role in banking activities because of both advantages and disadvantages that advanced technology brings to our lives . This information is proved by the larger scale of E-banking, not only individuals but also other businesses; the greater impact of regulations and principles that banking corporations followed,...ect. While electronic banking can provide a number of benefits for customers and new opportunities for banks, it also poses new challenges for banking regulators and supervisors. There may be some risks of security that managers have to solve or the difficulty in hiring potential staff. These challenges are also common in the case of Vietnam, which require close cooperation between The State Bank and Commercial Banks. Because of new threats, it is necessary to promote the application of modern technologies alongside investments in high-tech research and development activities to efficiently support the policy-making process. Well, I’ve covered the points that I needed to present today. I’d like to thank you for taking time out to listen to my presentation. And now if there are any questions, please contact our group and I would be pleased to answer them....