Question 1:
a) In what way does e-banking differ from traditional banking in terms of its services they offer? Provide suitable examples where necessary.
b) List and describe the role of different parties involved in an e-payment method
c) Outline the five (characteristics) that determine the acceptance of an e-payment method.
d) Electronic banking creates new risk management challenges for Banks.
Typically, all risks associated with traditional banking and products may be impacted with the introduction of e-banking services. However, there are seven major categories of risk specifically associated with e-banking. The associated risks are strategic, operational/transaction, technology, usiness, online fraud, reputation and legal. Explain in detail the seven major categories of risk associated with e-banking.
Question 2:
a) Differentiate between symmetric and asymmetric encryption system.
b) Describe how a digital signature is created.
c) Explain briefly what SSL (secure socket layer) is and how it can be applied to e-banking services to ensure security.
d) Explain the steps involved in a SET(Secure Electronic Transaction.
e) In cryptography explain the following:
- Authentication.
- Non-repudiation.
- Confidentiality.
- Integrity.
Question 3:
a) Outline the main difference between a credit card and a debit card as a payment instrument.
b) Outline the role of the credit card Gateway and list down the steps involved when payment is processed via the payment gateway.
c) Outline briefly how biometric systems work and give four examples of biometric measurements that can be used to identify a person.
d) Outline the importance of backup, recovery and business continuity procedures in an e-banking environment.
e) Outline briefly the following electronic payment methods:
Question 4:
a) Briefly explain the Electronic Data Interchange (EDI), and list the benefits of EDI.
b) List and describe the main components of MACSS.
c) Explain briefly how the S.W.I.F.T FIN Y-Copy works and outline the three main roles of the MACSS control system.
d) List down the three non-value functions (RTGS) related enquiries that are supported by MACSS participants interface (Web Server).
Question 5:
a) Define e-check.and list two benefits of e-check.
b) Using Authorise.net portal as an example, describe the steps how e-check works.
c) What Is Online Futures Trading? What are the advantages and disadvantages of online future trading?
d) Explain the E-Cash concept, its advantages and disadvantages.
e) In managing the strategic risk associated with e-banking services, financial institutions should develop clearly defined e-banking objectives by which the institution can evaluate the success of its e-banking strategy. What are the e-banking objectives that should be taken into consideration?