problem 1:

a) E-banking is defined as the automated delivery of new and traditional banking products and services directly to customers via electronic and interactive communication channels.

i) List down any three banking products and services offered.
ii) Name three such electronic and interactive devices used.
iii) Why do we use the Internet as the latest distribution channel for e-banking products and services?

b) In addition to the traditional banking products and services, financial institutions can give a variety of services which have been designed or adapted to support the e-commerce.

i) Web linking and website hosting are two illustrations of such support services. Outline each one of them.
ii) List down the risks related with both support services illustrated above.

c) E-banking risk is the potential which unexpected events might have an adverse Impact on the bank earnings. One such kind of risk is credit risk.

i) Define the term credit risk.
ii) There are aspects of on-line loan origination and approval than tend to make risk management of the lending processes more challenging. If not correctly managed, such aspects can appreciably increase credit risk. In brief outline what are such aspects?

problem 2:

a) Distinguish between the given key terms used in any e-banking security system:

i) Authentication versus Authorization.
ii) Data Confidentiality versus Data Integrity.
iii) Access control versus Auditing.

b)

i) Distinguish between a technical attack and a non-technical attack giving an illustration of each to support your answer.
ii) Outline the difference between private key and public key cryptography.

c) Distinguish between physiological biometrics and behavioral biometrics. Give two exs of each biometric measurement above which can be used to recognize a person.

d) There are different risks associated in an e-banking network and there are different technologies which exist to make sure that the organization’s network boundaries are secure. Name and describe two such technologies. (Give diagram to support answer if essential).