Transactional Websites

Transactional websites provide customers with the ability to conduct transactions through the financial institution's website by initiating banking transactions or buying products and services. Banking transactions can range from something as basic as a retail account balance inquiry to a large business-to-business funds transfer. E-banking services, like those delivered through other delivery channels, are typically classified based on the type of customer they support. The following table lists some of the common retail and wholesale e-banking services offered by financial institutions.

Table 1: Common E-Banking Services

Retail Services
Wholesale Services
Account management
Account management
Bill payment and presentment
Cash management
New account opening
Small business loan applications, approvals, or advances
Consumer wire transfers
Investment/Brokerage services
Commercial wire transfers
Loan application and approval
Business-to-business payments
Account aggregation
Employee benefits/pension administration

 

Since transactional websites typically enable the electronic exchange of confidential customer information and the transfer of funds, services provided through these websites expose a financial institution to higher risk than basic informational websites. Wholesale e-banking systems typically expose financial institutions to the highest risk per transaction, since commercial transactions usually involve larger dollar amounts. In addition to the risk issues associated with informational websites, examiners reviewing transactional e-banking services should consider the following issues:

  • Security controls for safeguarding customer information;
  • Authentication processes necessary to initially verify the identity of new customers and authenticate existing customers who access e-banking services;
  • Liability for unauthorized transactions;
  • Losses from fraud if the institution fails to verify the identity of individuals or businesses applying for new accounts or credit on-line;
  • Possible violations of laws or regulations pertaining to consumer privacy, anti-money laundering, anti-terrorism, or the content, timing, or delivery of required consumer disclosures; and
  • Negative public perception, customer dissatisfaction, and potential liability resulting from failure to process third-party payments as directed or within specified time frames, lack of availability of on-line services, or unauthorized access to confidential customer information during transmission or storage.

 

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Informational Websites
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E-Banking Components