Online Banking Essay

1. Introduction & Background As the developing of the technology, the Banking had large change, it is necessary to study how to use ATM of Online Banking to keep and management our property. John Shepherd-Barron had invented the Automatic Teller Machine (ATM) in 1967s, the ATM becomes the most important equipment in people’s life after 40 years, and there are about 403,000 ATMs in the U.S (Katharine, 2009). It can say that many people are using it everyday, like save money, and draw money or some transaction money, so the how to avoid and reduce the risk of ATM become more important than others activity, recently, the crime about the ATM increase rapidly, like copy the card information to steal money at ATM, cash trapping and other ATM scam were cost  £29.3million last year in the UK (Emma Reynolds, 2012). The second problem is the emergency about the bank system, like server shut down with out omen, which will make serious effect to human life (European ATM Security & Fraud Prevention). This part provides a critique of the literature of the ATM Bank System. The Automatic Teller Machine (ATM) in 1967s and becomes the most important equipment in people’s life after 40 years, there are about 403,000 ATMs in the U.S (Katharine Gammon, 2009). I choose this topic because using bank system is very important activity in our life, we are overseas student in the UK and we must management our property safely, so I think young people is likely to contribute to this topic. 2. What are the negative effect of ATM & Banking Online 2. 1 Risk of ATM In the ‘ATM Threat and Risk Mitigation’ (Frank D, N.D), the author focus on the all kinds of crimes about the ATM, for example stolen or swindle with ATM, introduce the ATM Security in detail and analysis the development of sale transactions, at last author gives some suggestion to readers how to protect own account and create some ideas for Bank how to complete the ATM Systems perfect. The literature describe how steal the information of costumers’ bank card and how to use these information to copy a card to steal the money also, in conclusion, do not use the ATM which looks suspicious and report to Bank. The literature provides very important information about how to avoid to lose money in ATM. 2. 2 Risk of Bank Online The second literature is ‘Risk Management Principles for Electronic Banking’ Electronic Banking (Basel C, 2003), this is a book which focus on the risk of online banking and this is a group work, there are many people to finish this literature together. I think this is a very good book because author use many example to explain and discuss the risk management principles. In this literature author explain and disuse the challenge of the Online Banking (E-Banking or Internet Transport). Base on the example of Electronic Banking Group (EBG) to describe the 14 risk management principles of electronic banking (Basel C. 2003). This book lists some challenge of the Online Banking: †¢ The innovation of electronic banking skill and customers sever are change rapidly. †¢ The electronic banking more deepens on information technology, so make the process more complicated. †¢ It is base on the Internet; the visitors come from all over the world, so it maybe produces many security issues of system †¢ The author lists the relevant solution: †¢ Effective management from the bank †¢ Building a comprehensive control process †¢ Investigate and supervise the process of relationships. The literature providers some good measures for Bank to reduce the risk of Online Banking (Emma R, 2012). 3. New ATM innovations Nowadays, the technology of ATM develops to a high level, it can realize many useful functions, however, the requirement always can not be content, that encourage people to create new ATM. A technology will be tested in India. ‘In the wake of increasing instances of fraudulent money withdrawals from ATMs in Chandigarh and Panchkula, the security agencies are in the process of conducting tests on the new safety equipment likely to be installed in ATMs in the near future’ said by Khushboo Sandhu (a leading Columnist associated with The Indian Express) in 2010. That means, we do not need bank card anymore, just use the scanner to affirm the costumer (Thorsten, 2012), that will reduce the process time and make process safe, because it is very hard to copy biological information. 4. Analysis and Synthesis The ATM and Banking online system were invented by human, so it must be have many regrets, it must have many risks during the processing. Frank and Basel(2003) had explained some typical risks in the bank system and gave some advise of solution, however, there are always new problems will appear in the future. These problems will become the new challenge of the bank system in Thorsten’s (2012) viewpoint. Maybe this is too professional to students, however , how to choose a suitable bank is significant for the international students.