Internet banking facilitates customers in banking

Internet banking facilitates customers in banking

By I. Christianto

JAKARTA (JP): Some people are reluctant to visit banks due to such reasons as long queues or fronting up to unprofessional tellers. Well, they can now enjoy carrying out transactions through the Internet from their home PCs.

Online banking has been here for a while, though only few of us may have made use of it.

This service, also known as Internet banking or electronic- banking (e-banking) enables customers to complete transactions through cyberspace around the clock. Some Indonesian banks are running their websites with transactional capacity, allowing customers to conduct true online banking transactions.

Anyone having accounts with the prepared banks can make real- time balance inquiries, view their transaction history for the last two months, transfer money or make payments to their credit cards. They will no longer have to wait for the monthly statement to be mailed out.

Indonesian banks operating this facility include Bank Internasional Indonesia (BII) and Lippo Bank.

Other banks in the country planning to run this service include Bank Danamon, BCA, Bank Niaga and Bank Mandiri. More banks will likely follow this trend as customers always seek more convenient ways in a world full of hybrid, cyber activities.

Customers can also open a savings account and transfer funds from one account to the other online. Holders of credit card issued by the banks can also check their statements.

When available, hopefully in a near future, customers will be able to obtain loans from banks without having to visit to a branch.

Customers can also pay their bills. A bank's online service usually offer customers certain bill payment powers.

But, most people are concerned about security. Is it really secure to use online banking?

BII has taken steps to minimize the risk of information passed being stolen by any unwanted party. The bank applies an advanced encryption technique to make sure that no other party can steal the flowed data. As well, BII uses digital ID certificate/128-bit encryption.

Advanced encryption techniques is a must to make sure that no unauthorized people can access any data when browsing.

Usually, there are so-called Firewalls protecting the internal networks from the Internet. A Firewall is a system of servers that stand between the internal network and the Internet.

Internet banking relies greatly on other infrastructures, namely telephone lines, computer literacy and Internet density.

Fixed-telephone lines in Indonesia total 6.08 million, or only three lines to every 100 people nationwide. The figure is better in Jakarta and Bandung (approximately 30 lines per 100). There are some 2.2 million mobile cellular user in Indonesia.

By the end of last year, Internet subscribers amounted 210,000 with one million users. The figure is estimated to reach 390,000 with 1.4 million users by the end of this year and 500,000 subscribers with two million users in 2001.

There are about 50 Internet service providers in the country, covering some 100 cities in 26 provinces.

Meanwhile, the PC population was three million by last year.

With multimedia infrastructure project plans in several big cities in Indonesia, the number of Internet users is predicted to increase significantly, therefore, Internet banking here will also see a brighter future.

Tips

Byber banking no doubt offers ease and convenience, but customers still need to be careful, particularly in conducting electronic payments.

Don't give your checking or savings account numbers, personal identification number (PIN) or user ID or anybody else, especially over the phone.

Don't write your PIN number or User ID on your notes or carry them in your wallet or purse. Funds can be stolen from your account by anyone who has the information.

Complete any transaction on the PC and never let others take a look or leave the PC on without you being there. This situation invites con artists and illegitimate businesses to access your account.

Be sure to read and reread all direction and agreements before you agree on them.

MPX advises that authorization for direct payments must be made in writing, and must be signed by the customer or authenticated by "digital signature" (digital signature refers to authorization via computer using a secure password or code such as an ATM PIN.) An electronic payment is fraudulent if the company has not obtained such authorization.

Authorizations for direct payments should be readily identifiable as authorizations. If the agreement you signed contained electronic payment authorization obscurely or in fine print, the authorization is invalid and the payment is in question.

You must know the company you are doing business with and making a copy of any transaction is always a good idea.