exclusively over websites where customers pay. Development of virtual banking is tied to small banks that wish to achieve rapid development using modern technologies that provide them with technological competitiveness. Virtualization banks, in addition to bringing the benefits and serious risks for the security business over the Internet.
Benefits of E-banking are: transfer payments to the banks was one of the first impulses for massive development of electronic banking and is now a large number of electronic percentage compared to the classical orders, lower costs-(for example in Bosnia and Herzegovina the realization of the payment by internet is 0.13 KM , through traditional banking 1.08 KM), higher income (in internet banking expenses accounted for 15.20% of revenues, while the ratio is more than 60% in the conventional banking), utilization of business hours (Internet banking is constantly on customer service 24 hours a day for 365 days in a year), access to electronic bank from any computer in the world (if computer modem is connected to the Internet), maintenance care system over the internet bank to conduct online banking transactions.
Disadvantages of internet banking: refer to the inadequate laws in this area (varies from state to state) and in the absence of a perfect system of protection and security in electronic commerce; the biggest obstacle to the application of Internet banking is undeveloped trust between users of electronic services and banks. Trust can quickly build up between the client and the bank, if the client is satisfied the security of their financial transactions using internet banking, lack of data security hundred percent.
In Serbia, today banking is in the development stage. In our country, in 2011. the greatest use of e-banking in any age from forty-five to fifty-four years, and is the smallest users aged sixteen to twenty-four, which is incredible. It can be seen in the table below (Table 1). It is interesting that, unlike men, with a share of 49.0%, women are increasingly using e-banking with even 62.9% (Table 2).
Table 1: Use of E-banking in Serbia in 2011.
Age Percent
Table 2: Use of E-banking by gender in 2011 - the year (from 100%).
Sex Percent of 100% supporting documents. Bank customer uses a phone, TV or computer as a telecommunications link or
unauthorized access. This kind of protection can protect our data with the access rights so that only the owner of the data can see their data and no one else has access to the owner's data. Benefits are different, home banking 24 hours a day available, access to the current account balance and credit cards, bill payments, planned and scheduled payments for a term that will be executed automatically, transfer money between accounts, financial management services for which additional software is required. At home banking distinguish three phases depending on the shape of telecommunication links between the bank and the client, as follows:
Mobile banking;
On-line Banking (Home Banking Intranet-based);
Internet banking.
Mobile banking is the latest trend in the development of e-banking in Serbia and is in development.
The world has occurred 70-years of the last century and to telephone to get information on the status of the account and placing orders for payment. The development of mobile banking financial institutions have the ability to offer banking, brokerage, insurance services through mobile phones, personal digital assistants (PDAs). Protection is provided by using a password (PIN) by each user using a home banking. The principle is similar to creating the password protection creating cards.
Specifically, this protection provides high security for data access. The benefits of using mobile banking are relatively small investment, a simple device (easy to use), greater comfort in using banking services. Disadvantages of using mobile banking are the uncertainty of the client sends data over a sellular network, the underdevelopment of uniform standards in mobile business.
On line banking Internet-based (PC) banking is a combination of the characteristics of the individual finance and electronic bill payment. Although in the early years was a great emphasis on the promotion of online banking, consumers have shown little interest in using their personal computers in banking. The fast development of online banking in Serbia is the result of the demolition of barriers such as security, ease of use of internet, and the utility rates. The goal of this system is that the services are closer to customers and allow them to communicate with the bank or other financial institution from home, with no effort of going to the counter of the bank or direct communication.
Disadvantages of online banking are restrictions on transactions with only one computer on which the software is installed, take the time to train for, and unprotected data on your hard drive users to attacks from the environment. The following table 3 presents online payments in 2010. year in Serbia.
Table 3: Online payments in 2010. in Serbia
Region % in 2010. advantages are access to a bank account and accessible from anywhere in the world, provided that in this place there is a computer that is connected to the Internet, the bank cares about maintaining their own hardware and software protection systems. This form of banking is developing very rapidly, internet banking is the cheapest form of banking services, available 24 hours a day, with virtually no space limit, the factors that influence consumer consent to this type of technology are security and privacy. In addition, the most important drawback of this form of payment is security, as users wake Serbian confidence.
Electronic instruments and basic payment
Electronic payments involve money transfers and payments by applying information and communication technologies. Financial transactions are final act of each job. Technology can significantly improve the performance of financial transactions, allowing it to be faster, more accurate, more reliable and more comfortable. In a contemporary business and labor, the traditional payment methods are increasingly losing importance, and electronic payment methods in Internet transactions are most critical segment of each show job.Internet is a network that is open to any third party can detect the misuse of credit cards. Therefore, there is developing a number of competing protocols and methods to guarantee the security of transactions, and to this end have developed systems for secure online transactions. Instruments and transaction mechanisms for carrying out financial transactions in e-business are: credit cards, intelligent (smart) card (smart card) and electronic wallets (electronic wallet), electronic or digital cash (money electonic, digital cash), micropayment.
Payment cards are non-cash payment instrument, and an instrument for withdrawing cash from the issuer or through an ATM card. It's a piece of plastic that contains a means of identification (signature or photo), which allows a person to whom the card is that it used for these purposes. Global distribution of credit cards and their use is very easy availability of modern technology and have made very attractive for the same crime activities. Targets are only underdeveloped and emerging markets, which do not have much experience in that there is no system to identify and prevent abuse. The most famous cards are Visa, MasterCard, American Express, Diners Club, etc., as a Serbian national brand appears Dina Card. They are non-cash payment instrument that allows users to pay for goods and services and withdraw cash. There are many reasons for their use, the most important time savings for users and dealers; ease and comfort of use, safety in the event of any loss of availability of all funds in the account 24 hours a day. Credit cards can be divided into three groups:
• Credit cards are cards that include a credit limit that consumers use when purchasing goods or withdraw cash, where the bank has approved a credit card holder, a predetermined line of credit.Then the owner of the credit card shall upon presentation of a credit card account to sign seller of goods or provider of services delivered to the issuer of a credit card which will charge at the agreed time. Bank customer whose credit card bank has a separate account by credit card from his checking account (usually on a monthly basis receives the account balance card). Specifically, the report contains detailed information about each transaction that is made card over a billing period in which this report is made, including the amount of accrued interest and possibly other charges. The report specifically shows the amount to be paid to a credit card in order used credit and the date by which payment should be made.
• A debit card is a card that allows the holder to directly debit your bank account, but after purchase no free credit period. This means that the client via remote communication lines with drew money from my checking account at the bank, without having to physically come to the bank. These cards can be used in retail stores that have stocked POS terminals and bank machines (ATM). It is important to note that the owner of a debit card has the ability to use the funds only up to the amount of coverage on your bank account.
• Pre-paid cards are known containing a computer chip that is inserted, amount of money from the account owner's card or cash paid by him. On these cards are funds that are paid in advance that are available to the client. Of course, this amount is reduced through the use terminals at points of sale, the purchase of goods or use of services. Prepaid cards can be: One –purpose cards are usually one-off so that by exploiting the value stored on them can'' supplement'' and reused. An example of the telephone cards, parking, mobile phones and others. Multi-purpose card can be "recharged" and they are used as a general means of payment in the places that are special equipped terminals. They actually represent a form of electronic money that has two main features, such as pre-paid cash
Electronic money and payment systems
Electronic money is legal tender, which involves the exchange of funds through telecommunication infrastructure, such as an intranet or internet banking systems. The greatest technological achievement in the development of banking is electronic money, and consequently of electronic banking. Elektronic money in everyday transactions, replacing cash and checks. Numbers are unique electronic money, as well as the serial numbers on real paper bills. Every electronic money transmitting a bank and it is a certain amount of real money. One of the key features, as well as real money, anonymous use (when the buyer sends some amount of digital cash for the seller, there is no way to obtain information about the customer). One of the famous, the dominant form of electronic money is electronic funds transfer at point of sale (EFT / POS) terminals installed using the merchant and service network. Unlike him, use another form of electronic money is available through ATMs (Automated Teller Machines - ATMs). They allow cash withdrawals, depositing, transferring to other accounts .
EFT / POS (Point-of-Sale) is the terminal point of sale, and important is to pay for goods or services card. At present not all of the actions mentioned in the terminal but are a good way to introduce them. The terminal is a device that reads data from the card and on the basis of that information control is exercised, the validity of the card, check card balances and, ultimately, by the performed successfully cashless payment, transfer of funds from the card to the merchant's account in the amount of purchases made. Through this system is directly transferred funds from buyer to seller.
For this to be realized, it is necessary to directly connect electronic cash register (terminals) to the network in the banks. EFT POS terminals allow, that the data from the card to the network that connects traders from around the world center for the processing of payment card issuers and card checks in about 10 seconds. EFT POS system checks the credit card account shall debit the customer, reduces traffic fines documentation, stabilize the bank and deposit potential traffic increases non-cash payments (commissions and fees). Client through this system allows: faster non-non-cash charges, cost reduction payments, total control of the financial costs. Benefits off POS terminals are: an increase in sales of goods and services with the card because customers are not limited to the amount of money you have in your wallet, ease of accepting cards and cut costs because the terminal is connected to the bank so that the authorization and payment of all transactions done automatically, POS terminal is set to the dealer after the conclusion of accepting cards. It is essential that the dealer complies with the technical requirements as well as the power source (free power connector) and analog telephone line (the same type of line and connect a fax or computer) at the point where the terminal will be installed.
ATM systems (Atomated Teller Machines) - one of the most common types of electronic banking technologies as ATMs, which become active in our country any users are extremely satisfied. The aim of introducing terminal for communication between banks and customers automate the routine and everyday banking activities.. The first ATM is connected to a branch of British "Barcclays" bank 1967th year. ATM is a data entry terminal with two input and four output devices. It is connected to the central computer, or through leased lines or modems. Information stored on magnetic tape located on the back of the cards are read by a card reader and passed on a central computer. PIN (identification number) in encrypted form to a central computer. Identification number must be entered carefully, since ATMs after three incorrect attempts to enter the number of mostly block the card. Advantages: banks allow customers certainty, the speed transactions, cash withdrawals, simplicity view account balance, every day, 24 hours a day, raising money in the parent bank's ATMs for free, defined daily cash withdrawal limit is defined for each type of bank card advantage of the location near the market, stop, shopping malls and other places of traffic.Table (4) shows the credit card payment of goods abroad in 2011.
Table 4: Payment for goods by credit card abroad, 2011. manage risks if they determine the upper limit of the introduction of bank performance that can best adapt to these risks.
Risks are not (can not materialize) and can cause a loss of business, and manage a component of every modern business policy of the bank. Since each risk varies (from one to other financial institutions), in e-business, it is impossible to apply the approach to risk management under the principle of "same yardstick." Therefore, any risk is necessary to apply a special management strategy, because the risks are constantly changing and by nature and by their intensity. Specific risks that the e-banks faced in the field of e-banking and e-money, the operational risk, reputational risk, legal risk, traditional risk, an international e-business.
Operational risks can be grouped as follows: Risks safety (reliability) arising in connection with the control system of accounting, information which communicate with environment bank, electronic money transfers, as well as to prevent fraud or forgery. Ignoring safety risk would result in lack of control and the ability of the virus to insert the accounting information system of the bank, and possible abuse of the system by employees of the bank; The risks of system design, implementation, and maintenance is a key phase of development of e-banking and e-money, and the risks are inadequate preparation of this phase can manifest itself in a break or slow down the system; Misuse of products and services by the user - this type of risk is increased due to the poor user education undertaken. In these cases, the personal information of bank customers (credit card number, etc.)-often unprotected in electronic banking transactions. Operation risks can occur at different levels of the bank: personnel risk (risk people) refers to human error, human fraud, inadequate expertise, process risk relates to inadequate procedures in decision making, errors in posting transactions, errors in the process of storing transactions, errors in the neglect of legal documents, technical defects information system, etc., risk techniques (technical support) involves errors in defining the information model (the program), use of inappropriate tools for risk measurement and the like, IT risk refers to the risk of data protection.
Reputational risk is the negative impact of public opinion on the bank. Because this is in electronic banking considerable outflow or outflow of cash from customers. This risk can have a lasting character. Bank of image distortion can occur as a result of bad communication networks, where information is not available to customers on the status of funds in the business account. This risk can not be expressed only in terms of individual banks, but may be expressed in relation to the entire banking system of the country.
Legal risk - occurs when the rights and obligations of the parties involved in financial transactions are not fully regulated by the law. It is especially important to legally regulate to prevent "money
control, because electronic banking can be performed a long distance and they can not be efficiently used traditional methods to detect and prevent these criminal activities.
Traditional banking risks include, Credit risk refers to the ability of the borrower to make no commitments regarding the amount of loan or repayment period, Liquidity risk arises when a bank is not able to meet payment obligations arising in terms of e-business, Interest rate risk involves the reduction of interest rates to the point where adverse movements in interest rates reduce the value of the property depending on the unfulfilled commitments in e-cash, Market risk is the risk of loss, especially in terms of off-balance sheet positions arising from movements in prices.
Risks of international e-commerce - refers to the lack of geographical barriers related to e-banking and e-money. Thus, the market expansion extends beyond national borders. Risks of international operations is based on a technology that knows no geographical barriers of a region or a country.
The methodology of risk management involves identifying (defining the types of risk and the degree of risk exposure) and the definition of risk management strategies (defining tactics and tools of risk management of the bank). Risk management tactics can be threefold and involves risk-taking, risk avoidance, protection against potential risk. Namely, when the risk assessment, management of the bank is obliged to take the necessary measures for risk management, implemented by controlling risk. Their competence is the development and maintenance of infrastructure security control electronic systems. In order to control the risks it should be carried out: to include the entire banking hierarchy (from top to bottom) to minimize the risk in electronic commerce; risk management of electronic transactions including education of employees in banks and education of users of their services; it is necessary to establish communication between management structure that manages the risks of e-business and employees of the bank, who are responsible for the operation of the electronic banking (IT sector in the bank); to protect the bank from the risk necessary to develop and implement security mechanisms, which are the use of hardware and software tools. The mechanisms
The methodology of risk management involves identifying (defining the types of risk and the degree of risk exposure) and the definition of risk management strategies (defining tactics and tools of risk management of the bank). Risk management tactics can be threefold and involves risk-taking, risk avoidance, protection against potential risk. Namely, when the risk assessment, management of the bank is obliged to take the necessary measures for risk management, implemented by controlling risk. Their competence is the development and maintenance of infrastructure security control electronic systems. In order to control the risks it should be carried out: to include the entire banking hierarchy (from top to bottom) to minimize the risk in electronic commerce; risk management of electronic transactions including education of employees in banks and education of users of their services; it is necessary to establish communication between management structure that manages the risks of e-business and employees of the bank, who are responsible for the operation of the electronic banking (IT sector in the bank); to protect the bank from the risk necessary to develop and implement security mechanisms, which are the use of hardware and software tools. The mechanisms