Electronic banking is an appealing vision – both for the client and for the financial institution. Occasional visits to a bank branch, avoiding standing in queues, constant information about the account balance, remote opening of deposits, and moving money practically across the globe… The profit for both parties of each transaction is also intriguing in this vision. A measurable profit should remain on the bank’s side. However, it is quite possible that the client, by gaining time (realizing transactions with access to necessary information, establishing contact with the bank – via the Internet around the clock), also generates a financial profit for themselves.
What exactly does a bank offer a client in this field? I decided to look at the offer of two randomly selected banks operating on the Polish financial market to be able to answer this question.
CitiConnect Internet System
Bank Handlowy w Warszawie SA, a member of Citigroup, offers the CitiConnect system, enabling clients in the sphere of payments to:
– authorize transactions on-line
– use both a standard credit card and a card for registered users
– secure connections
– view transactions
– distinguish between transaction parties
– inform registered system users about transactions (SMS or e-mail).
The diagram shows the transaction flow in this system, step by step. Its two parties: the seller and the buyer, have a proven sequence of procedures to use, which constitutes (in the bank’s opinion) an optimal variant of transaction execution.
Step 1: The buyer enters the Seller’s website
Step 2: The buyer browses the available product offer and places an order on-line.
Step 3: The buyer accepts the payment amount and is redirected to Citigroup servers, where data is downloaded from the Seller’s website and the order total is determined. The buyer receives information about the need for payment authorization. Entering the requested data is equivalent to starting the payment procedure.
Step 4: The data entered by the Buyer is verified. The transaction is completed only if the Buyer has sufficient funds. The amount shown in the order is blocked on-line.
Step 5: The buyer receives information on the screen about the acceptance or rejection of the payment.
Step 6: The buyer is redirected to the Seller’s website.
Step 7: The system automatically generates a confirmation for the Seller.
Step 8: The seller settles the transaction within 14 days.
The article comes from the magazine “e-Fakty” 1/2004.