E-Banking

Question 1

Outlet that allows you to withdraw cash

Answer 1

ATM

Question 2

Banking online means accessing your bank account and carrying out financial transactions through the internet on your smartphone, tablet or computer.

Answer 2

True

Question 3

Automated teller machines are electronic bankingoutlets that allow people to complete transactions without going into a branch of their bank

Answer 3

True

Question 4

Online paymentmethods are inconvenient for offline sales.

Answer 4

True

Question 5

The cost of operation per unit of services is higher for banks.

Answer 5

False

Question 6

E-banking is also known as internet banking.

Answer 6

False

Question 7

The use of computers and telecommunications enables banking transactions to be done by telephone or computer rather than through human interaction.

Answer 7

E-banking

Question 8

Features include electronic funds transfer for retail purchases, automatic teller machines (ATMs), and automatic payroll deposits and bill payments.

Answer 8

E-banking

Question 9

Electronic banking has vastly reduced the physical transfer of paper money and coinage from one place to another or even from one person to another.

Answer 9

E-banking

Question 10

Relies on intricate computer systems that communicate using telephone lines.

Answer 10

E-banking

Question 11

A method of banking in which the customer conducts transactions electronically

Answer 11

E-banking

Question 12

Is a form of banking in which funds are transferred through an exchange of electronic signals rather than through an exchange of cash, checks, or other types of paper documents.

Answer 12

E-banking

Question 13

Types of E-banking

Answer 13

Internet Banking.
Mobile banking.
Automated Teller Machine (ATM’s).
Smart Cards.
Electronic Funds Transfer (EFT).
Electronic Clearing Services (ECS).
Telebanking.
Door-Step Banking.

Question 14

also known as electronic fund transfer (EFT), uses computer and electronic technology in place of checks and other paper transactions.

Answer 14

Electronic banking

Question 15

are initiated through devices like cards or codes that let you, or those you authorize, access your account. Many financial institutions use ATM or debit cards and Personal Identification Numbers (PINs) for this purpose.

Answer 15

EFTs

Question 16

radio frequency identification (RFID) or other forms of “contactless” technology that scan your information without direct contact with you.

Answer 16

debit cards

Question 17

covers some electronic consumer transactions

Answer 17

Federal Electronic Fund Transfer Act (EFT Act)

Question 18

Also known as net-banking or online banking, is an electronic payment system that enables the customer of a bank or a financial institution to make financial or non-financial transactions online via the internet.

Answer 18

Internet Banking

Question 19

This service gives online access to almost every banking service, traditionally available through a local branch including fund transfers, deposits, and online bill payments to the customers.

Answer 19

Online Banking

Question 20

A common method of access (or identification) is by access code, such as

Answer 20

a personal identification number (PIN)

Question 21

ATM network, a set of interconnected automated teller machines that are linked to a centralized financial institution and its computer system.

Answer 21

Small System

Question 22

Federal Reserve Wire Network, called Fedwire. This system allows participants to handle large, time-sensitive payments, such as those required to settle real estate transactions.

Answer 22

Large System

Question 23

Shifting from brick-and-mortar to click-and-mortar approach.

Answer 23

History of E-banking/Online Banking

Question 24

Brick and mortar:

Answer 24

Traditional

Question 25

Click and mortar:

Answer 25

Modern/Digital

Question 26

Bank of America as one of the First Institutions to Develop the Idea of Electronic Computers for Banking Tasks

Answer 26

1950s

Question 27

New York City Banks Test At-Home Banking

Answer 27

1981

Question 28

Bank of Scotland Institutes First UK Internet Banking Services

Answer 28

1983

Question 29

Stanford Federal Credit Union Offers U.S. Internet Banking

Answer 29

1994

Question 30

NetBank is Founded

Answer 30

1996

Question 31

Bank of Internet USA is Founded

Answer 31

1999

Question 32

Bank of America Has 3 Million Online Customers

Answer 32

2001

Question 33

80% of US Banks Offer Internet Banking

Answer 33

2006

Question 34

Ally Bank is Launched

Answer 34

2009

Question 35

Online Banking is Growing Faster Than the Internet

Answer 35

2010

Question 36

Online Banking Is Standard Practice

Answer 36

2018

Question 37

There is such thing called _________ and it is observed annually every 2nd Monday of October.

Answer 37

“National Online Bank Day”

Question 38

IMPORTANCE OF E-BANKING

Answer 38

E-banking offers ease of access, secure transactions and 24-hour banking options. E-Banking has democratized the consumer's ability to be in total control of their money regardless of where they happen to be located. E-Banking gives customers the ability to access their financial accounts via cell phone, laptop, or other devices that have been linked to their accounts, is a welcomed banking resource.

Question 39

Business owners, accounting staff and other approved employees can access routine banking activity such as deposits, cleared checks and wired funds quickly through an online banking interface.

Answer 39

Business Activity Review

Question 40

E-banking leads to productivity gains. Automating routine bill payments, minimizing the need to physically visit the bank

Answer 40

Improved Business productivity

Question 41

Banking relationships and costs are often based on resource requirements.

Answer 41

Lower Banking Cost

Question 42

Banking relationships and costs are often based on resource requirements.

Answer 42

Lower Banking Costs

Question 43

Automation of payments, wires or other consistent financial activities ensures payments are made on time and may prevent errors caused by keyboard slips or user error.

Answer 43

Reduced Banking Errors

Question 44

REASONS WHY ONLINE BANKING IS IMPORTANT IN TODAY’S TIME

Answer 44

1. Security Assured 2. Access: no problem 3. No hidden fees 4. Convenience Guaranteed 5. Monitor Your Accounts Closely

Question 45

ADVANTAGES OF ELECTRONIC BANKING

Answer 45

An online account is simple to operate. It’s convenient, because you can easily pay your bills and transfer your funds between accounts from nearly anywhere in the world. You do not have to stand in a queue to pay off your bills. It is available all the time. Funds get transferred from one account to the other very fast. You can keep an eye on your transactions and account balance all the time.

Question 46

DISADVANTAGES OF ELECTRONIC BANKING

Answer 46

Understanding the usage of internet banking might be difficult at first. You cannot have access to online banking if you don’t have an internet connection Security of transaction is a big issue. Password security is a must. Your banking information may be spread out on several devices. If the bank’s server is down, then you cannot access your accounts If the bank’s server is down, due to the loss of net connectivity or a slow connection, then it might be hard to know if your transaction went through. You might get overly marketed too and become annoyed by notifications. You might become annoyed by constant emails and updates.

Question 47

ON THE RISK CONTROL OF ELECTRONIC BANKING

Answer 47

The system of encrypting client identity-safety assessment measures

Question 48

Electronic banking can reduce pressure, reduce the operation cost, it is a good window and means for the bank to show image and competitive ability.

Answer 48

Access to Electronic Banking Market Must be Strict

Question 49

Government, and other concerned institutions must regulate laws about the new ways of transacting in banks.

Answer 49

Strict Approval of Electronic Banking

Question 50

The financial institutions that have the electronic banking that decide to cancel all electronic banking services or part types of electronic banking services should report the termination reason and the disposal scheme to Central Banking.

Answer 50

Follow the Termination Rules of Electronic Banking 

Question 51

Prudence principle and measures of risk management according to traditional business still applies to electronic banking business, the former risk management system must have the proper necessary supplement according to the change of environment and operation mode.

Answer 51

Improve the Risk Management System of Electronic Banking

Question 52

Encryption client identity system guarantee authenticity, legality, and effectiveness of the customer information to prevent theft account, identity risk.

Answer 52

The System of Encrypting Client Identity

Question 53

Prudence principle and measures of risk management according to traditional business still applies to electronic banking business, the former risk management system must have the proper necessary supplement according to the change of environment and operation mode.

Answer 53

Improve the Risk Management System of Electronic Banking

Question 54

The information disclosure system urged the bank to keep customer protection and privacy laws and regulations, it can help to restrict bank legal risks and reputation risks.

Answer 54

Information Disclosure System of the Bank

Question 55

Bank and the customer have the law relationship of financial service, the electronic payment service agreement between the bank and its customer can improve safety consciousness of the customer, prevent the comprehensive business risk.

Answer 55

Service Agreement

Question 56

Electronic equipment safety is the unity of applied and the in-ternal control system, its function is to ensure the integrity, authenticity and confidentiality of the data and the operation process.

Answer 56

Electronic Equipment Safety Measures

Question 57

According to the possible risk due to internal procedures, service, product transfer caused by abnormal condition, the bank should ensure that emergency measures

Answer 57

Emergency Treatment Measures

Question 58

Safety evaluation refers to in process of developing electronic banking business electronic banking safety strategy, financial institutions should inspect and assess the safety test and control ability on the safety strategy, internal control institution, risk management and the consumer security.

Answer 58

Safety Assessment Measures

Question 59

The Anti-Money Laundering Act (AMLA) of 2001 or RA 9160 criminalizes unlawful activities such as graft and corrupt practices, fraudulent practices, robbery and extortion, swindling and plunder, amongst other activities.

Answer 59

Anti-money Laundering

Question 60

AMLA laws and regulations target criminal activities including:

Answer 60

market manipulation trade in illegal goods corruption of public funds tax evasion as well as the methods used to conceal these crimes and the money derived from them Sneaking cash into foreign countries to deposit Deposit cash in smaller increments to avoid arousing suspicion Use illicit cash to buy other cash instruments

Question 61

Reporting Suspicious Activity

Answer 61

Money-laundering investigations by law enforcement often involve scrutinizing financial records for inconsistencies or suspicious activity. The institutions must verify the origin of large sums, monitor suspicious activities, and report cash transactions exceeding $10,000 (Php 500,000). Even amounts of P500,000 and less must also be reported to the AMLC when certain circumstances qualify them as “suspicious” transactions. Some reasons include: there is no underlying legal or trade obligation, purpose or economic justification [for the transaction] the client is not properly identified the amount involved is not commensurate [to the] … capacity of the client

Question 62

ability to perform the promised service dependably and accurately

Answer 62

Reliability

Question 63

willingness to help customers and provide prompt service

Answer 63

Responsiveness

Question 64

appearance of physical facilities, equipment, personnel, and written materials

Answer 64

Tangibles

Question 65

employees’ knowledge and courtesy and their ability to inspire trust and confidence

Answer 65

Assurance

Question 66

caring, easy access, good communication, customer understanding and individualized attention give to customers

Answer 66

Empathy

Question 67

It is used for retail purchase

Answer 67

Electronic Fund Transfer