Abstract:
Electronic banking as a set of different ways of performing financial transactions
using information and telecommunication technology provides the benefits
of temporal and spatial limitlessness, speed of transactions, low prices and a
wide range of banking products and services. On the other hand, apart from
the obvious advantages, e-banking incorporates certain risks that need to be
precisely identified and managed. This is the reason why the Basel Committee
on Banking Supervision established a task group called EBG (Electronic Banking
Group) that consists of banking supervisors and central banks. The group has
come to a conclusion that electronic banking impacts some of the traditional
risks, modifying and augmenting them, this primarily referring to strategic,
operational and reputational risks. Specific challenges of e-banking services
relate to rapid changes, increased dependence on the design and system, the
trend toward unregulated outsourcing and heightened importance of security
controls. The principles of risk management in traditional banking are applicable
to e-banking activities, but the complexities of the Internet dictate that
the application of these principles be adjusted to on-line banking activities and
related challenges. Because of rapid changes in technology, risk management
principles of electronic banking are not given as mandatory requirements or
strict regulations but as guidelines that express supervisory expectations, the
aim being to ensure safety and stability of the financial system. Any rigidity in
the regulation of e-banking may be counterproductive because such solutions
would quickly become outdated due to a fast pace of technological change.
CITATION:
IEEE format
Z. Jović, G. Ćorić, I. Pejović, “Challenges of Modern Electronic Banking,” in Sinteza 2016 - International Scientific Conference on ICT and E-Business Related Research, Belgrade, Singidunum University, Serbia, 2016, pp. 442-447. doi:10.15308/Sinteza-2016-442-447
APA format
Jović, Z., Ćorić, G., Pejović, I. (2016). Challenges of Modern Electronic Banking. Paper presented at Sinteza 2016 - International Scientific Conference on ICT and E-Business Related Research. doi:10.15308/Sinteza-2016-442-447