The Present Situation And Development Of Network Bank

The vigorous development of the internet economy by the end of the century, is contacted with net-based commerce which has been developing rapidly since 1993. With the rapid development of computer networking and telecommunication technology, a revolution in finance industry is coming to us, in which e-bank service becomes the strategic choice for the traditional commercial banks in the future competition. E-bank emerges with the rapid development of c-commerce. E-commerce is a new business model emerged in North America in 90s. In e-commerce, business flows including searching and purchasing for raw material, product demonstration, order and distribution, storage, and electronic payment is conducted via internet. Because of its advantage in cost reduce, demand expansion and competitiveness enhancement, the development of the e-commerce or~ a large scale is becoming the main characteristic in modern economy. E-commerce requires a secure and efficient payment system as its external surroundings, where c-bank emerges. Without c-commerce, c-bank can not develop so fast and efficient. On the other hand, without the secure and efficient payment system on Internet, c-commerce can not develop smoothly, either.E-bank ts based on Internet technique and providesservice to the customers with financial information andvirtual of fee counter for transactions. There are threemodeIs of e-bank:l. All atansactions are entirely conducted via internet,such as W.S 's well known Security First NetworkBank(SFN.);2. Integrate the current internal networks oftraditional commercial banks with internet and enablecustomers to perform account query and transaction, mostof Chinese banks take this model;3. Traoptional banks establish websites in internet todisseminate financial information.E-bank went through three stages in its history:computer aided bank management, electronic banking, ande-bank. And now e-bank is in the rising course.Compared with traditional banking services, e-bank hasthe fOllowing advantages:l. Cut the operating cost of banks and improve theirpro fitab il ity;2. No limit in terms of service time and location;3. Facilitate cross selling and innovation of services;4. Acquire and maintain customers.On the other hand, e-bank is not perfect. It still facessome problems without good solutions, for example, thesecurity. Ertsuring the safety of the internet finance'srunning, has always been a priority of the manager and thesupervision authority of e-bank. E-bank enhances securitymainly through security protocols. Currently, there areSecure Socket Layer (SSL), Secure Electronic Transaction(SET) and Cettificate Authentication (CA) protocols.Since Oct. l995 when the first e-bank in U.S, SFNB wasestab1 ished, financial service through internet developsrapidly in the developed countries in America, Europe andAsia pacific regions. Countries in Asia pacific region such asAustralia, New Zealand, HK and Si ngapore and those in LatinAmerica see great development of e-bank at the end of 90's.The development of e-bank in Africa has been slow.In April 1 997, China Merchants Bank launched e-bankservice in China. Then Bank of China, The Construction Bankof China, The Industrial and Commeroial Bank of China alsoprovides service via internet. They offer on-line settlementof payment. And "Internet payment card" of Merchants B ankis more successful among all of these banks.In summary, the e-bank in China is still at early stage. Itstill faces problems in terms of security, law, technologicalspecification, internal management and source of customers.We need improvements in these respects. However, we...