2.1.6 Retail Electronic Banking
| Status: In-Force |
As with a bank's commercial customer base, electronic banking is also penetrating the retail market. Services such as telephone bill payments, PC based home banking, and the use of "smart" telephones combining the features of both a conventional telephone and a microcomputers present significant opportunities for enhancing both the level of customer service and revenue in the highly competitive retail sector. However, at the same time, these new electronic products open new avenues of exposure to both third party and employee fraud as well as potential areas of professional liability exposure. In future this will become an increasingly important risk exposure area for the banks. The increased use of telephone services that permit computer access to banks' systems also provide an increasing opportunity to "hackers” and other criminals. These require improvements in security measures and additional risk management techniques to minimize losses.