21-08-2012, 11:05 AM
On-Line Islamic Banking Services
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INTRODUCTION
In the early 1980s, Financial Institutions in Malaysia did all of their transactions manually. Customers had to queue to execute their financial transactions and other banking businesses. These consume a lot of the clients’ precious time and somehow the services were quite inefficient. Due to the usage of paper based systems in banks and these caused data redundancy, lack of flexibility and sometime may caused lack of data sharing and availability of the system.
Since the past three years, parallel with the fast moving in Information Technology (IT), everything becomes faster. Financial Institutions in Malaysia take the opportunity to grab the challenges from the Prime Minister of Malaysia to compete with globalization in IT environment through MSC (Multimedia Super Corridor). Online Banking system is now applied by almost all banks in Malaysia. Even though the systems are not fully utilize, this is a good scenario where they start to implement the online banking in the new IT era.
Online banking is also called Electronic Banking, Internet Banking, Electronic Transfer Fund and Home Banking. These are the same thing; however they differ in the classification whether it is external or internal. There are also issues regarding online banking as in; problems that might arise, security in online banking and applications applied.
BACKGROUND OF THE INSTITUTIONS
In this project, two financial institutions were chosen which were Mayban Finance Berhad (MBF) Main Office and Bank Muamalat Malaysia Berhad (BMMB), IIUM service center. Interview sessions were conducted to both of the institutions respectively.
Different institutions apply different systems in online banking but under the same and standard guideline granted by Bank Negara Malaysia. A financial institution which has licensed under the Banking and Financial Act (BAFIA) 1989 and the Islamic Banking Act 1983 is allowed to offer Online Banking system in Malaysia.
SIGNIFICANT OF ONLINE BANKING
Online Banking is very essential nowadays. It is very important for Financial Institutions to be competitive in developed country. It will actually help them in delivering their services in efficiently.
Besides, the end users will be able to cope with the new technology slowly as well as to serve them better understanding compared to the manual methods of banking systems. They no longer have to feel bored while waiting for their turn and somehow decrease their perception that the online banking is hard to implement in Malaysia.
Lastly, this Online Banking services is paperless base and user-friendly where the end users (customers, clients and staffs) can access it any place that provides the Online Banking services.
WHERE CAN WE FIND ONLINE BANKING
Maybank Groups have provided their services almost everywhere. In selected petrol stations around Malaysia, ATM machines are now provided and also Cash and Cheque Deposit Machines, in supermarkets as well as the Highway PLUS R&R (Rest & relax) station and 24 hours Internet network access of maybank2u.com.
As a new financial institution, BMMB online banking services can be found in their branches and main office for the main services of e-muamalat, ATM can also be found in service centers, supermarkets and in the network bank area.
TARGET GROUP
As well as other businesses in Malaysia, Financial Institutions also has their own target group to offer their online banking product and services. Basically it depends on the place where the banks are located. Thus target groups are all the potential users in the area.
For Mayban Finance Berhad, even though the main office is located at Bangsar Utama, their target groups are all the bank users and companies, especially big company not only in Malaysia but also abroad. Initially, the primary target is all the staff of Maybank groups. For those who are abroad, they can deal with the bank by accessing the Internet via the website, provided they have the username and password. It is not only targeted for the bank customers but also other financial institutions. For example Citibank account holder can use Cheque Deposit Machine to clear their cheque. Staffs in Maybank Groups are the first target groups, encouraged to apply this system in their daily life. It is for the purpose of bills payment as well as their salary payment by the organization.
On the other hand, the target group of BMMB in IIUM includes students of IIU whereby they usually deals with matters regarding educational loan, and of course, staff of IIU, staff of BMMB, and the outsiders whom are making business and other dealings with IIU.
CONCLUSION
In general, we could conclude that online banking is an advanced form of any funds transfer by electronic means initiated either through electronic terminal, telephonic instrument or magnetic tape in instructing or authorizing a financial institution. This particular new form of technology is vital for the Financial Institutions in providing an integration of global services.
Both institutions develop their own Online Banking systems and purchase the machine from vendors. These machines are controlled by Information System Development (ISD) unit for MBF and Electronic Bank Department for BMMB.
Banks as well as users has their own responsibilities in order to face the problem regarding the security when dealing with these new forms of technology. Basically they offer similar services and applications but the different is that Maybank is more advance and established.
This advancement form of Online Banking hold great promises in ensuring a banking system which is more practical, efficient, effective, reliable, friendly user, secure, economical and convenient in order to fit in today’s hectic lifestyle.