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LIKE HAVING AN ATM AT HOME
BY ABDEL AZIZ NOSSEIR
If the thought of long lines, noisy lobbies and being shuffled from window to window just to transfer funds sounds unappealing, you’re not alone. Banks in Egypt have recognized that many of their clients have better things to do than take time off to visit their branches. In response, a growing number of banks have established online banking services that allow clients to manage their money from the privacy of their home using the Internet. Better still, banks currently offer many of these services to their clients free of charge.
Egyptian American Bank (EAB), recently acquired by Calyon Bank, is one of the pioneers of Internet banking in Egypt. While many banks operate on the previous day’s closing balance, EAB uses a live, current balance, which makes your online banking more reliable and helps to ensure that your subsequent transactions will not be rejected due to insufficient funds. Clients can request their home branch prepare a draft check (bank check) to be picked up in person, or request a stop-check – though written confirmation within 14 hours is required. Certain bills and credit cards can also be paid online.
One of the most useful features of EAB’s online service is its option to create a standing instruction to automatically transfer funds between accounts at a regular interval. Unfortunately, the service only works for internal transfers; it cannot be used to transfer funds to other banks.
That drawback is handled by National Société Générale Bank (NSGB), which offers online clients the option of transferring funds from their accounts to any other bank operating in Egypt. To activate this service, the client must first visit their home branch and specify in writing which accounts are authorized to receive transfers.
Meanwhile, HSBC lets clients transfer funds not only to other banks in Egypt, but also overseas banks. Regular clients can transfer up to £E 30,000, while clients with a balance of £E 100,000 or more can transfer up to £E 45,000 and clients with a balance above £E 425,000 can transfer up to £E 60,000. The bank also offers a number of useful online banking services that go beyond the normal level of service, including investment tools that let clients track time deposits, interest rates and other investment data.
Commercial International Bank (CIB) has arguably the best overall online service in Egypt, offering clients everything from phone bill payment to credit card stoppage, to a charitable donation and transfer option. And for the few transactions that can’t be carried out online, such as opening accounts and credit card applications, the appropriate forms can be downloaded and filled out before reaching the bank.
Security is a high priority for CIB, which is the first bank in Egypt to utilize e-signature technology for money transfers. To use this service, CIB provides its clients with digital signature hardware and software that when installed on their home PC allows them to easily and securely transfer funds from their home branch to any other local or foreign bank. The cost of this service, including the initial hardware and software, is £E 200 for the first year and £E 100 per year thereafter.
While CIB employs cutting edge security technology, some banks are taking a decidedly low-tech approach to protect their clients’ accounts. Arab Banking Corporation (ABC), for example, offers a read-only service that lets clients check their balance, review their accounts and credit card history, and track their loan payments. As no transactions are permitted, neither the client – nor any unauthorized user – is able to access funds.
Banque Misr also operates a very basic online service that lets clients check the balance of their accounts and credit cards. The bank recently created a special portal for electronic payments. Clients can use the bank’s issued credit cards to pay fixed-line and mobile phone bills, traffic tickets, driving license renewal and opera tickets.
Secure transactions
One of the main reasons so few people have taken advantage of online banking is security fears. Banks claim their online services are secure, but finding their website down – as is prone to happen – is hardly reassuring. Nonetheless, IT experts insist, banks employ hi-tech security measures to protect bank clients’ data from unauthorized access.
How? Firstly, banks employ sophisticated encryption software that encodes all data to ensure that only the registered user is able to view it. Secondly, unlike regular web pages, the encrypted pages viewed during your online banking session are not recorded on your PC, or anyone else’s for that matter. And thirdly, as a way of keeping out would-be thieves, banks automatically disable account access after several incorrect attempts to log in. Once disabled, online access can only be reactivated by contacting or visiting your branch.
In reality, however, the main security threat comes from the client’s side, though a few basic precautions can help minimize this threat.
-Remember to log off when you finish a session (most online services automatically log off after several minutes of inactivity).
-Do not share your password or use it for other services (Yahoo, Hotmail, etc.)
-Do not write down your password or send it in an e-mail.
-Avoid the tendency to use passwords that can be easily guessed, e.g. children’s names, birth dates and telephone numbers. Passwords containing upper and lower case letters, numbers and symbols are far harder to guess.
-Always change passwords on periodic bases.
-Avoid doing online banking at Internet cafés, libraries or other public places.
-Disable your browser’s “auto-complete” function, which stores personal information including passwords.
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