Global Finance with Electronic Banking

• Global Finance


  The system of financial activities and transactions that take place on an international scale
• Electronic Banking


  The use of digital technologies to conduct banking and financial transactions
• Key Components/Aspects of Global Finance

  • Global Financial Institutions
  • International Financial Markets
  • Regulatory Frameworks
  • International Banking
  • Foreign Direct Investment (FDI)
  • Derivatives & Financial Instruments
  • Cross-Border Capital Flows
  • Exchange Rates
  • Financial Innovation
  • Financial Crises
• Evolution of Finance and its Role in the Modern World

  1. Early Financial Systems (Ancient Times to Pre-Industrial Revolution)

  2. Modern Banking (17th to 19th Century)

  3. Industrial Revolution and Capital Formation (19th Century)

  4. World Wars and the Bretton Woods System (20th Century)

  5. Rise of Financial Markets (Late 20th Century)

  6. Financial Deregulation and Globalization (Late 20th Century)

  7. Financial Crises and Regulatory Responses (Late 20th Century to 21st Century)

  8. Digital Revolution and FinTech (21st Century)

  9. Sustainable Finance and ESG Investing (21st Century)
• Increased cross-border capital flows, trade, and the integration of financial markets
• The late 20th and early 21st centuries were marked by significant financial crises, including the Asian financial crisis (1997), the dot-com bubble (early 2000s), and the global financial crisis (2007-2008)
• In response, regulatory reforms were implemented, such as the Dodd-Frank Act in the United States and international Basel III banking standards
• The 21st century has witnessed a digital revolution in finance, with the rise of FinTech companies offering innovative financial services and products
• Blockchain technology and cryptocurrencies like Bitcoin have emerged as disruptive forces in finance
• There is growing emphasis on sustainable finance, with a focus on environmental, social, and governance (ESG) criteria in investment decisions
• Green finance and impact investing aim to promote environmentally responsible practices
• Central banks have played a crucial role in managing monetary policy, including implementing unconventional measures such as quantitative easing (QE) to stimulate economies during financial crises
• Electronic banking


  A digital service provided by financial institutions that allows customers to conduct various banking transactions and manage their accounts through electronic means, typically over the internet
• 1. banking


  (as defined by the Bangko Sentral ng Pilipinas) a system that enables bank clients to avail themselves of the bank's products and services through the use of the Internet or a telephone
• Evolution of electronic banking

  1. Introduction of automated teller machines (ATMs) in the 1960s

  2. Development of telephone banking in the 1970s and 1980s

  3. Internet revolution of the 1990s paved the way for true electronic banking
• Key features and services of electronic banking

  • Account access
  • Fund transfers
  • Bill payment
  • Mobile banking
  • Online loan applications
  • E-statements
  • Account management
  • Investment services
  • Account customization
  • Online customer support
  • Security features
  • Currency exchange
  • ATM and branch locator
  • Budgeting & financial management tools
  • Peer-to-peer (P2P) payments
• Advantages of electronic banking

  • Convenience
  • Cost savings
  • Efficiency
  • Accessibility
  • Real-time transactions
  • Environmental impact
  • Customization
• Security and privacy in electronic banking

  Emphasizes security measures such as encryption, two-factor authentication, and biometrics to protect customer data and transactions
• Electronic banking continues to evolve, with ongoing developments in financial technology (fintech), mobile payments, and digital currencies (cryptocurrencies)
• The integration of artificial intelligence and data analytics is enhancing personalization and customer experience in electronic banking
• Changes in global finance in the 21st century

  • Stricter regulations
  • Increased oversight and supervision
  • Risk management
  • Monetary policy
  • FinTech innovation
  • Sustainable finance and ESG investing
  • Digital currencies and blockchain
  • Cybersecurity
  • Globalization and emerging markets
  • Financial inclusion
• Financial markets


  Any marketplace where the trading of securities occurs, including forex, money, stock, and bond markets
• Financial markets trade in all types of securities and are critical to the smooth operation of a capitalist society
• Internet Banking


  Allows you to conduct online transactions through your PC or laptop and an internet connection. Refers to the use of a secure website or online portal provided by a bank or financial institution to offer banking services over the internet.
• Internet Banking

  • Account Management: Customers can view their account balances, transaction history, and account statements online
  • Fund Transfers: Users can transfer funds between their own accounts, to other accounts within the same bank, or to external accounts at other financial institutions
  • Bill Payments: Internet banking platforms often offer bill payment services, allowing customers to pay bills for utilities, credit cards, loans, and other expenses electronically
  • Deposit Checks: You can usually deposit a check through a mobile app using a process known as remote deposit capture
  • E-statements: Customers can opt to receive electronic statements via email instead of paper statements
  • Alerts and Notifications: Users can set up alerts and notifications for account activity, including balance alerts and transaction alerts
  • Secure Messaging: Internet banking often includes a secure messaging system for customers to communicate with the bank regarding account-related inquiries
  • Online Customer Support: Customers can access online help resources and frequently asked questions (FAQs) to get assistance with common banking tasks
• Mobile Banking

  An online banking that use mobile applications (apps) provided by banks or financial institutions to perform banking activities via smartphones and tablets. Mobile banking can be done with or without internet.
• Mobile Banking

  • Account Access: Users can check account balances
  • Mobile Check Deposits: Users can deposit checks by simply taking photos of them using the mobile app
  • Fund Transfers: Mobile banking apps allow users to transfer funds between their own accounts and to other accounts, including external accounts
  • Biometric Authentication: Many mobile banking apps offer biometric login options, such as fingerprint and facial recognition, for enhanced security
  • Mobile Payments: Mobile banking apps often support contactless payments, enabling users to make purchases in stores, online, and within apps using their smartphones
  • Bill Payments: Users can pay bills and schedule recurring payments through the mobile app
  • Location Services: Some mobile banking apps provide branch and ATM locator services to help users find nearby bank facilities
  • Mobile Alerts: Users can receive push notifications and alerts related to account activity, ensuring timely awareness of transactions and account updates
• Common Aspects of Internet and Mobile Banking

  • User Authentication
  • Transactions
  • Security Standards
  • Convenience
• User Authentication

  Both internet banking and mobile banking require secure authentication methods to ensure that only authorized users can access accounts
• Transactions

  Both platforms support common transactions, such as checking balances, transferring funds, and paying bills
• Security Standards

  Both adhere to industry standards for security and data protection to safeguard user information and financial transactions
• Convenience

  Both provide a convenient alternative to traditional brick-and-mortar banking, allowing users to manage their finances remotely
• Benefits in Online Banking

  • Convenience: Basic banking transactions can be done at any time of day or night, seven days a week. You can also open and close various accounts online, such as checking and savings accounts.
  • Fast and efficient: Funds can be transferred between accounts almost instantly, especially if the two accounts are held at the same institution. Plus, mobile check deposits can be made in just a few minutes.
  • Ease of monitoring accounts: You can closely monitor your accounts to spot suspicious activity. Around-the-clock access to banking information provides early fraud detection, serving as a guardrail against financial losses.
• Disadvantages in Online Banking

  • Customer service challenges: Sometimes, you might need to visit a branch to handle certain transactions, such as buying a cashier's check. In other cases, you might not even have access to a branch. Furthermore, you may prefer depositing checks, withdrawing money or discussing your financial needs face-to-face.
  • Tech and connectivity required: Some customers may need to be more comfortable with the tech-heavy aspects of online banking. For example, they may need help with some online tasks, such as setting up automatic payments. In addition, online banking depends on a reliable internet connection. Connectivity issues make it difficult to process transactions when you want to.
  • Hacking risk: Although security continually improves, online accounts remain vulnerable. Customers should use their wireless plans rather than public WiFi networks when logging into an online bank account. This can help prevent unauthorized account access.
• Virtual Branches

  Online platforms or digital channels that replicate traditional brick-and-mortar banking services. They are designed to provide a comprehensive and interactive online banking experience. Virtual branches are accessible 24/7 from anywhere with an internet connection, offering flexibility and convenience to users. They are usually integrated with other digital channels, such as internet banking, mobile banking, and ATMs, providing a seamless and consistent user experience. Security features, such as encryption, secure login methods, and multi-factor authentication, are implemented to protect customer data and transactions. Virtual branches allow financial institutions to provide a more traditional branch banking experience in a virtual format, where they can deliver advice, conversations, and the human element.
• Virtual Banking

  A valuable tool for financial institutions looking to increase digital engagement and improve customer service. Virtual banking provides the ability to offer personal touch and expert service through digital interactions. It also offers flexibility of when and how customers can meet with bank representatives. Virtual banking allows financial institutions to expand beyond their traditional geographic boundaries, allowing them to serve customers who have moved outside of their normal region, as well as expand into new geographic territories without the need for a physical location.
• Customer Support Channels

  • Traditional Channels: Customer support is traditionally offered through in-person visits to branches and telephone support.
  • Digital Channels: With the advent of technology, customer support is increasingly provided through online chat, email, and social media.
• Customer Support Services

  • Query Resolution: Customer support assists customers with inquiries related to account information, transactions, and banking products.
  • Issue Resolution: Addresses and resolves customer issues, such as disputed transactions, account discrepancies, or technical difficulties.
  • Guidance: Offers guidance on using digital banking services and understanding bank policies.
• Customer Support Accessibility

  Customer support is available through various channels to accommodate customer preferences. This includes 24/7 online support, which is common in the digital age.
• Issues and Challenges in Online Banking Sectors

  • Shifting banking habits: With the growing shift in digital banking habits, banks need to keep their product offerings relevant, further enhancing the online banking experience for them and exposing them to the numerous benefits that come with doing banking online.
  • Security: Security is one of the most significant challenges for online banking marketers because of the inherent concerns that are traditionally associated with banking online. Although banking systems are designed to be virtually impenetrable, cyberattacks and fraudulent activity are still a reality. And often users don't realise that their online habits may be putting them at risk.
  • Technical issues: Whenever we use the internet, we risk experiencing technology and service interruptions. System stability and efficiency can affect your ability to access your accounts if your internet is slowed or stopped entirely. Similarly, no matter how sophisticated the tech, bank servers are still prone to both intentional and accidental downtime.
  • Lack of personal relationship: Having an in-person banking relationship can help customers compare their options and find solutions tailored to their needs, something which isn't as easily achievable through self-service. The ideal scenario would be a blend of online banking for day-to-day transactional needs and personal relationships with bank staff to help customers find the right solutions for their overall banking needs.
  • The changing banking landscape: Neobanks have fully embraced the power of digital to offer a seamless banking experience with little to no fees. These pose significant competition for traditional banks, as merely having an online banking component is no longer enough. Traditional banks must continue to adopt digital transformation and adapt their services to be as easily available and efficient online as they used to be in-branch.