e-Security Business Landscape -
Online Banking for the Large Corporation
Banks and large corporations have always worked together in the past. In today’s age of online banking, corporations can get even more functionality. “[Online banking] has become a major component of many companies' overarching business strategy, commanding attention at the highest levels of the corporation, even into the boardroom” (Leuchter 1).
Corporations get several benefits from online banking, including 24- hour monitoring of their banking needs. Online banks can cut paper work and every day costs of banking. Online banking, “enables companies to monitor accounts at any time, make and receive payments at the touch of a button and earn profits by investing overnight cash in money markets and other instruments” (Martin 1). Corporations are not going to convert to e-banking unless it is cost effective. “The rise of online banking will allow companies to do some sophisticated bargaining and comparison shopping for banking services, since the physical location of the bank itself becomes less important” (Martin 1).
However, the inevitable security issues keep some companies reluctant from managing their assets completely online. Security needs to become more stable as online banks continue to grow. With security being the biggest issue for corporations, “Banks need to be conservative" says John Hall of the American Bankers Association (Martin 1). Security and privacy problems can be attributed to many things, but much of the responsibility comes back to the account user (Martin 1).
Security is not the only foreseeable problem with online banking. Companies can lose money if a site ever goes down. "Online customers require a 100% uptime service. Anything less can result in major financial loss for the customer and the bank," said Ing. Renier Diaz Arciniega, subdirector of systems for Bancomer (Business Wire).
Overall, corporations can use online banking technology to maximize returns on investments and funds. Having access and being able to monitor at any moment makes online banking intriguing for large corporations. Some big companies will be reluctant to try due to security concerns. Cost effectiveness will be the final deterrent if corporations are to move into this banking arena.
- Online banking for the individual
- Online banking for the small business
- Online banking for the large corporation
- One-way security
- Two-way security
- Digital signatures
- Firewalls and Virtual Private Networks
- Outsourcing security
- Marketplace Analysis
- Meeting the needs of the individual consumer
- Meeting the needs of the small business
- Meeting the needs of the large corporation