On l i n e Ba n k i n g
Penulis: Kontributor Ternate, Agus Supriyadi |
Editor Agus Supriyadi
First
Steps
The
first order of business for the group will be to decide on a name for their online
bank. This can take a lot of time because it needs to be something catchy, easy
to remember and has a nice ring to it. They must also insure it doesn't
infringe on any trademarks or be too similar to other banks. If the name is too
similar to another bank, they won't be able to get a trademark for it. Once
they've decided on a name they can file for a trademark at the US Patent and
Trademark Office. There they will fill out just one form and pay a fee. Then
they will have to wait for approval. If all goes well their chosen name will be
trademarked without any delays.
Website
and hosting
Next
they will need to acquire hosting and have a website professionally built for
them. The web designer they choose will need to be able to setup the highest
level of security as well as an attractive site. The site must also be easy to
navigate. They also must insure that no copyrighted material has been used on
the site.
Forming
a Charter
Now
the bank is ready to form a charter. They will apply for this charter using the
Office of the Comptroller of Currency (OCC). This can be a lengthy process and
will involve a ton of paperwork and information. Another method of getting a
charter is to take over stock of an existing bank and apply for a change of
charter with the OCC. The OCC will give them advise on the best way to submit
their application for this charter. The OCC will then evaluate all the
information that has been provided to them about their financial situation and
proposed banking policies. If the OCC approves their charter application they
will then be ready to open for business.
Why People Like Online Banking
Banking online is becoming increasingly popular every day. Have
you given it a try yet? If not maybe you're not sure what all the fuss is
about, so let's take a look at the advantages of online banking.
Easy to open a new online bank account
You can do it from the comfort or your own home. All you have to
do is answer a few questions and you'll soon be banking online. For security
purposes you'll be assigned a username and password, and some may have a few
other safety measures in place. To wrap things up you'll need to print off a
form that you will need to sign and mail or fax it in.
Saves money
Fees are lower than a traditional brick and mortar bank. Since
online banks don't have as much over head as the traditional banks do, they can
keep their fees lower. Many traditional banks also offer online banking where
you can pay bills, transfer funds and check your account 24/7.
Easy Comparison
It's easy to compare deals with online banks so you can see which
one offers you the best deal. You can check the different online banks and find
interest rates and policies about checking and savings accounts. You can also
see what credit cards they offer, and at what the rates are. You can compare
loan terms. You can also check with the FDIC to verify the banks' credibility.
Monitor account
Online banking customers can monitor their account balances daily if
they want to. You can check your balance anytime day or night. You can lookup a
particular check to see if it's cleared or see if deposits have been credited.
Download Statement
You can download your monthly statement directly to your computer
or to accounting programs such as quicken. This makes managing your acct a
breeze! You can also see copies of the checks you've written.
Catch Fraud Faster
Since it's so easy to access your account at any time it's easier
to monitor it for any fraudulent activities. If anything suspicious is going on
with your account the sooner you know about it the sooner you can take steps to
put a stop to it and recover any lost funds.
Convenience
Online banking is a lot more convenient than being restricted to
certain banking hours such as traditional banks have. It doesn't matter what
the weather is because you don't have to leave the house. Online banking allows
you to manage your money from just about anywhere 24/7.
Taking Your First Steps With Online Banking
You've made the decision to take advantage of the benefits of
online banking; now you just need to know how to get started. In this section
we're going to show you how to get started with online banking.
Online banking with traditional bank
If you want to register an online account with the traditional
bank you already have an account with the process is pretty simple. You just
contact your bank and tell them you want to start using their online services.
They will then send you all the information you need to get started. They will
include an instruction sheet along with the username and password to access the
account online.
Security Process
This letter will also cover security issues with online banking.
It will tell you about what security measures they have in place, such as that
you have a browser that supports 128-bit encryption. It will also explain to
you how to enter your username and password on the bank's website. The letter
may also tell you how to type in the bank's URL carefully to avoid phony
phishing sites that are set up to steal your information. The other letter you
will get will be one with your temporary password. It will explain how you can
change your password. It will also tell your about the various security tokens
you may have chosen, such as images and captions. Then it will explain how to
log on to the bank's site and begin online banking.
Virtual Banking Only
If you are going to be using a bank that only exists online
(virtual bank) the signup process will be somewhat different. First you'll need
to open an account with the virtual bank. You will find a lot of the
considerations are the same as with traditional banks. You will want to make
sure they are FDIC insured. You also want to know their interest rates on
savings accounts, loans, and the different checking accounts. It might also be
good to know the bank's overdraft fees.
You will want to be sure and read all the rules and procedures in
doing business with them. You'll want to be sure and actually read them so
there won't be any surprises later on. Once you've chosen your online bank, you
need to make sure it's a reputable one before you divulge any personal
information or give them any money. The virtual bank will allow you to choose a
username and password, within certain parameters. You can then get down to the
business of starting your online banking account. You will need to provide all
the usual information that you would give to any other bank when setting up an
account. Next, you will need to send the virtual bank some kind of deposit to
get the account officially open. Once you're all setup with your online bank
you can start using it and enjoying the benefits it provides.
Paying Your Bills using Online Banking
Online banking can make the bill paying process a fast and easy
process. You can even choose to have it done automatically if you want too.
Whichever way you choose it will still save you time and are more accurate.
Free Bill Paying
You will find that some online banks will allow you to do free
online bill paying.Normally this will require some type of qualifying account.
Some online banks will give you free bill paying if you keep a large sum of
cash in your account all the time. This qualifying sum may be a $1000 or it
could be as much as $5000 depending on the online bank.
Non-free Bill Paying
If you don't qualify for free online bill paying you will have to
pay a fee which is normally less than $10 a month for a certain number of
transactions. If you go over the limit you will have to pay additional fees.
This added fee is normally less than .50 per bill.
Getting Setup
To get started with online banking just look for the link to 'bill
paying' or something similar. From there you will just follow the enrollment
steps. They will tell you how to setup your payees etc. If you have more than
one bank account with the institution you will need to select which account the
funds are to be drawn from. You will need to set your bills up for payment in
advance. This may vary from one bank to another so be sure to find out how far
in advance you need to schedule the payment.
Recurring Bill Payments
You can also setup recurring payments to be taken out of your
account periodically. These payment arrangements are commitments, so unless you
cancel them before the scheduled payment date, they will be paid. If you don't
have the money in your online banking account to cover them, you will become
overdrawn.
Confirming Bills Have Been Paid
You can check to find out if a payment has been made in different
ways. You can choose to be notified by email from your bank every time they pay
a bill. This payment will also show up in your online bank account
transactions. You will also realize from your next bill from that company if a
payment was credited to your account. Paying bills utilizing online banking is
easy once you get the hang of it. If everything is setup correctly, it will
take very little time to manage the steady stream of payments going from your
account to those with whom you do need to pay.
How to Determine if Your Online Bank is Legit
If you've decided to setup an online banking account, you may have
some concerns as to whether or not it's a legitimate business or not. After all
it wouldn't be hard to setup a website pretending to be a bank and then they steal
your money or your identity. These are legitimate concerns, however there are
precautions you can take to be sure the online bank you've chosen is legitimate.
Check Bank’s Credentials
You'll want to start at the online bank's website and see what
information you can find there about their banking credentials. You should be
able to find the bank's official name and perhaps some articles that talk about
the bank's history including their online banking history. They should have a
contact page that contains information about their location and where and how
they can be contacted. They should also state somewhere
that they are FDIC insured.
Verify they are FDIC Insured
You'll want to verify that they are indeed FDIC insured. This is
easy to do. Look for the words "FDIC Insured" or "Member
FDIC" or the FDIC logo, if you find them you may be on the right track.
However, it is wise to dig a bit deeper. You'll want to go to the source to
find out if the online banking company is really affiliated with the federal
insurer. The FDIC has its own database that will include all of the banking
institutions, including online banking companies that are covered by their FDIC
insurance. Just go to their “Bank Find” http://www2.fdic.gov/idasp/main_bankfind.asp
site to find out if your bank is listed with them. You can perform
a search with the name of the bank or its address. If your online banking
company is on their list, the FDIC will provide you with a whole list of
helpful information. You will learn when the bank became insured, and the
number on its insurance certificate. You can find out the location(s) of your
bank and its official name. You can also find out what government entity
regulates that bank. If your online banking company does not show on the list,
you should go directly to the FDIC. They will be concerned with the legitimacy
and safety of that bank as well. If they are not FDIC insured it's not a good
idea put your money in an uninsured bank. If this is the case, it's best to look
for another online banking company, as there will be plenty legitimate ones to
choose from.
Use Caution When Accessing Online Bank
Once you are setup with a legitimate online bank, you will want to
exercise caution when accessing it. You will always want to be sure you have
typed the address in correctly as a mistake could lead you to a fake site. Some
dishonest people will create a fake site that looks like the real one in an
effort to trick you into signing with your username and password which they will
then capture and use it to steal from your acct. You will also want to be
cautious with any emails you may get that appear to come from your bank and
they try to trick you into logging in with your details so they can get your
information. We cover this in more detail in next section so be sure to read
that as well.
Tips to Prevent Online Banking Fraud
Like any other business online banking is susceptible to
fraudulent activity. Scammers can be found in most any business and the
Internet is no exception. The good news though, is there are steps you can take
to protect yourself.
Fake websites
One well-known trick by fraudsters is to setup a fake website that
can look identical to the real one and get a domain name that is similar to the
bank name. In this instance they are waiting for you to type the url to your
bank incorrectly and then enter your login details so they can capture the information.
They would then use your information on the real site to steal your money or
identity. To prevent this type of theft you should bookmark the real site and
use that to access your online bank. That way you can be sure you don't type it
incorrectly.
Phishing
Another common type of online fraud is called
"phishing". In this method they send you an email with a link telling
you to take some type of action on your acct. The link will be cloaked to look
like the real URL but instead it will take you to a fake site made to look like
the real one where they are waiting for you to enter your login details or
other private information.
Protecting yourself
In most cases if you just point your mouse to the link, but don't
click it you will see it does not really go to your bank. The other clue is the
email will address you as something like "dear customer" rather than
your actual name. If you ever get these type of emails go to your real bank URL
by using the bookmark or typing it in directly and you'll find an email address
to report these types of emails. They will verify if the email is a spoof or
not and if it is, they will take action to shut them down.
You must remember that a legitimate online bank will NEVER ask you
for the password to your acct. This is very confidential info and should not be
shared with anyone. Your bank will also never ask you for personal information
through an email link. Whenever you dealing with an online bank, type in the
bank's web address yourself or use the link you have book marked. Then take a
close look to be sure the closed lock symbol appears on the upper right corner
of your screen. You will never go to a secure online banking website without
being able to see that locked padlock symbol.
Even taking precautions, it may be possible for some scammer to
find a way into your bank account. So the best defense is to monitor your
account carefully on a regular basis. This way you will know right away if
something is wrong. If you do find any fraudulent activity you must contact
your bank and report it immediately so the bank can take swift action to protect
your funds.
More Online Banking Security Tips
Online banks work hard to make their servers as secure as
possible. They consult with experts in the security industry to help them fix
any weak spots. One way they do this is to hire some computer-hacking
consultants that try to find any areas that may make their banking system
vulnerable to scammers. However there are some things you should do as well.
Use the Right Browser
First the online bank will normally require you to have a browser
that supports 128-bit encryption. This is to insure the information is as safe
leaving your computer as when it's on the bank's secure server. Most current
versions of popular browsers such as Firefox or Internet Explorer will have
this feature, so be sure you are running a current version. If you're setting
up online banking access with your traditional bank they will normally provide
you with a username and password at the bank or the online bank website. Be
sure to follow their guidelines in choosing your usernames and passwords.
Password tips
When choosing your password, you can base it on something you know
or like. It can be anything that no one would specifically be able to relate to
you. For instance, it could be a line from a song. Another idea is to take the
first letters of all the words and make a string of characters for your
Internet banking password. Then, you could capitalize some of them, throw in
some numbers, and you have a password that will be hard to guess but easy for
you to remember.
Once you've chosen your password you should memorize it and
destroy any pieces of paper it may be written down on. You should also change
your online banking password on a frequent basis. Some banks will force you to
change it on a regular basis. You should not share your password with anyone
unless they share the account with you.
Safety tips
You should always be careful to logoff after accessing your online
bank account. This can be especially true if you are accessing it in a public
place. However I would advise against accessing your online bank on a public computer
as you can never be sure what someone may have planted on the computer. Plus
for some savvy Internet thief it wouldn't be difficult for them to some how get
a hold of your information. This is because computers will store things in data
logs and the cache. Some banks will provide a service that blocks transactions
from being stored in a computer's cache memory. If your bank offers this
feature then using a public computer for online banking would be much safer.
If you are accessing your online bank in a public place you also
must take precautions to not let anyone see what you are entering for your
login details. By now you see there are many ways you can protect your personal
details when using online banking, however it will require you to use caution
and think before taking certain steps. You play an important part in keeping
your information safe.
Transferring funds With Online Banks
One of the benefits many people appreciate with online banking is
the ease of transferring funds between accounts. There can be many reasons why
people may want to transfer money from one account to another. For example some
people may want to transfer funds between their traditional bank and their
online bank. They may want to do this so the money will be available in the
account they normally pay bills from.
Moving Money Between Accounts
Another example is people moving money from a checking account to
a savings account or visa versa. They may also want to transfer funds from an
investment account into their online bank account. You can do this with any
account you have that can be accessed via the Internet. Yet another reason
could be to transfer money from your account to someone else’s' account. This
need could arise if perhaps you need to help someone and they need access to
the funds right away. With online banking you can do this in a matter of
minutes.
Doing business overseas could be another reason someone may need
to transfer funds into someone else's account. Transferring funds is quite easy
to do and usually just requires you to login to your account and select the
'transfer funds' option. If you already have some accounts linked with your
online bank, the next thing you will do is choose the account the money is
going to.
If you need to send money to another person's account, there is
normally a little different process to do this. You may see a different tab to
select, such as "pay person." This will help you to arrange the funds
transfer to another person's account using online banking In either of these
cases, you can set it up as a one-time only, or as a recurring transfer. This
can be quite handy if you have an elderly relative on a fixed income that needs
help on an ongoing basis. Using online banking to handle funds transfers is an
effective way to approach any number of problems. If you are ever curious about
how to get money from one place to another, log on to your online bank and
check out funds transfer option.
Online Banking Privacy Policies
As a consumer you usually want to keep your personal information
private to prevent others from using it for their own gain. For this reason
there is privacy policy legislation in place to protect you and an online
banking institution must abide by them just as any other business does. So you
always want to know how your online bank is going to use and protect your
personal information. A study was conducted to determine how well different
banks, including Internet banking companies, handled their privacy policy.
Every financial institution should have a privacy policy that is consumer
friendly.
Privacy Policy Law
The law we are referring to is the Gramm-Leach-Blily Act, or GLB,
as it is often called. This law was enacted by Congress in July 2001. This law
gives power to financial institutions to conduct business in a lot of important
ways. More importantly to consumers, there is a section dedicated to the
privacy of banking customers, including online banking customers. All banks
must provide consumers with a copy of their privacy policy. This privacy policy
will explain how online banking operations as well as other banks will use your
personal information.
Personal Information
Your personal information could include any information that can
be identified as your specific information. It could be things such as your
name, address, social security number, online banking transactions you may have
done in your name, and other information as well. It could also be any
information that someone could guess just by having part of your personal
information. This study included traditional banks, clicks to bricks banks,
virtual Internet banking operations, and other financial institutions as well.
It then compared each company's privacy policy, as to how they informed
consumers about their privacy policy, and what options consumers had in regards
to "opting-out."
If you opt-out, you are telling to the company that you do not
want your information to be shared with other companies that are not affiliated
with the bank. Under the GLB, internet banking services still have the option
of sharing your information with affiliates and/or marketing partners, but they
should make you aware that they are doing so. One problem has been that the
privacy policy statements sent out to consumers by online banking companies and
other banks are that they have been almost impossible for most people to
decipher. There is so much legalize language that they are not exactly easy to
read. There is a now a movement to make them easier for consumers to
understand.
Opting out
Another common problem is that some online banking companies have
made it quite difficult to opt-out of having your information shared with other
unrelated businesses. You will find there are some online banking sites that make
it nearly impossible to opt-out. They make you jump thru so many hoops that you
just won't bother. It should be easier with online banking and some online
banks are taking steps to do that. Indeed some online banks have online forms
you can fill out so that you can be finished with it in quickly. The good news
is that virtual online banking companies that offered standard
banking services like checking and savings accounts scored the
best in this study. Just be sure to checkout your online banking institution's
privacy policy before you open an account with them.
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