The development of e-banking

E-BANKING is an umbrella term used by the banking industry. It defines the delivery of banking products and services electronically to financial institutions, individuals or businesses. E-banking customers access accounts, transact business, and obtain financial information via a public or private network, including the Internet. They do this electronically through a personal computer (PC), personal digital assistant (PDA), automated teller machine (ATM), kiosk, or touch-tone telephone.

In the 1970s, the US Federal Reserve System operated a computerized clearing house system, or interbank electronic funds transfer (EFT) system. In comparison, today's high value or wholesale interbank funds transfer systems involve the exchange of very large amounts of money between banks, or participants in the financial markets. SWIFT is the payment transfer system provided and operated by the Society for Worldwide Interbank Financial Telecommunication. Most countries have their own major network or real-time gross settlement (RTGS) system. For example, CHAPS is the UK system, and CHIPS is the US interbank clearing house system.

The retail or bulk funds transfer system handles large-volume, low-value payments, including cheques, credit transfers, direct debits, ATM and EFTPOS transactions. The automated clearing house (ACH) system is generally a domestic electronic clearing system.

Payment via the retail telecommunications network occurs as follows. A consumer sends payment information and authorization to a retailer, who forwards this information electronically to their own bank or ODFI (originating depository financial institution). The ODFI forwards the information to an ACH operator, who sends the transaction information to the consumer's bank or RDFI (receiving depository financial institution) for credit clearance. Once this is, gained, the consumers bank or RDFI makes the funds available by crediting the retailer's account and debiting their clients account. So far, there has been no exchange of funds. The ACH operator now settles the transaction between the ODFI and RDFI (i.e., the retailer's and wholesaler's banks).

Consequently, these banks have a legacy of computerization systems with hardware from different suppliers, and programs written in an array of different languages — BASIC, PASCAL, etc.

Basel Committee for Banking Supervision, 2000

Vocabulary:

e-banking – n. онлайн банк

suppliers [sə'plaɪə] – n. поставщики

institutions [ɪn(t)stɪ'tju:ʃ(ə)n] – n. институты, учереждения

authorization [ɔθ(ə)raɪ'zeɪʃ(ə)n] – n. авторизация

transfer [trænsfə:(r)] –n. перенесение, перевод

amount [ə'maunt] – (sum) сумма, (quantity) n. количество

retail [ri'teil] – n. розничная продажа

bulk [bʌlk] – n. вместимость, основной объем

consumer [kən'sju:mə(r)] –n. потребитель