The Future of Internet Banking This post was written with the help of the author: Olivia Onil is a master in English philology and literature at California University. Olivia is currently working as one of the best writers at the https://exclusivepapers.net/ She also studies feminine psychology. There is nothing strange that every year banks are investing large amounts in the development of Internet banking, as well as applications that can facilitate the work of clients with bank accounts via mobile or smartphone. In this way, banks attract new customers and keep regular ones. The advantage of the convenience, speed and ease of these services is obvious. Soon humanity will completely forget about cash payments, bank queues and offices, and will perform any maneuvers with finances, without leaving home. For all this, banks are only in the win. This paper describes possible ways of developing Internet banking as well as the time frame of transition from traditional banking to innovative banking. The use of self-service in the distant banking has long been popular around the world. And every year these programs are becoming more reliable, safer, more convenient and faster, which means they will become more popular. Tracking poll in December 2010 showed that almost 60% of all Americans who used the Internet made some banking over it. In the UK, a number of bank accounts registered with Internet banking rose from 28 million in 2006 to 45 million in 2010. Chinese banks have the greatest number of Internet banking users in the world with more than 100 million. From 2.5 billion people in the world who do not have access to conventional banks, about one billion people have mobile phones. The rapid spread of mobile phones have allowed some of the poorest economies in the world to go forward to developed countries in the financial technology. Adults living in Africa south of the Sahara use mobile money three times more often than adults in Europe and America. In some African countries there are more mobile payment accounts than accounts in conventional banks. Kenya is a successful example of how mobile money transforms the country’s economy beyond recognition. In 2006, less than 30% of the adult population had access to simple financial services. Today, thanks to M-PESA, this number has risen to 65%. The service M-PESA that works with mobile money remittances processed more than $20 billion, equivalent to 40% of the GDP of the state. A question of security concerns every user of Internet banking. If credit institutions traditionally paid much attention to this problem, it is definitely that the weak link in the chain “client-bank” is a user who does not always follow safety rules in a global network. Therefore, online banking focuses on such aspects of RBS as the authentication process; confirmation of operations performed by the user; receiving notification of actions taken, and the use of electronic signatures. As a rule, username and password are used in the online banking system for the user’s authentication. However, this authentication option is no longer a guarantee of protection against unauthorized access to the system. In order to reduce the risks of fraud hacking into online banking new tools of protection began to appear. For example, a virtual keyboard protects you from the virus program that reads the registration data from the regular keyboard. Two-factor authentication requires the presence of at least two sources of information. In this case, the authentication process, besides the login and password, uses the second source in the form of protected media with key information, one-time password generators or SMS one-time password. The use of such tools has become commonplace. To reduce the risk of unauthorized payment transactions in online banking, mechanisms of confirmation payments have been increasingly applied. One option to confirm an execution of payment transactions is a one-time password. It may come to the user’s mobile device via SMS or be hidden in a table of session keys found on a scratch card. In order to further reduce frauds the user must be promptly notified about the entrance to the internet banking or execution of payment transactions. For these purposes, there is a mechanism to send messages to email or an SMS in the Internet banking system. An example of the implementation of the mechanism of notification of the client is the “Notification Server”, which provides automatic informing of customers of the bank, businesses and individuals via SMS and e-mail at the time of occurrence of a particular event. An electronic signature is the main mechanism to establish the fact of the integrity of the electronic document and check whether the signature of the owner is real. In this case, it is more likely to be used by corporate clients but sometimes individuals are also offered electronic signatures. Unfortunately the use of banking electronic signature does not guarantee complete security of banking operations through online banking. Increasingly, attackers carry out the theft of money by hacking e-banking service and access to key customer information, which can be placed in the registry of the operating system on the hard drive of a personal computer and other sources. In some cases, the fraudsters through the introduction of malware carried substitution of data at the time of signature of the electronic document and the user of remote banking services does not even know about such a substitution. To protect the key information, and stop fraudulent actions in online banking hardware protection is increasingly used. These are USB tokens with non-removable keys that secure the storage of key information or a smart card reader Safe Touch that is a device that allows you to visually monitor the contents of the transmitted data to be signed and protects the user from spoofing the data at the time of signature of the electronic For example, the use of USB-token with non-removable key is available in all product classes of internet banking provided by the company BSS, and work with the device SafeTouch is implemented in the systems of remote banking services for legal entities. Obviously, the use of online banking is very convenient for people who do not have time to stand in line at the bank. This service also helps “to keep abreast”. You can log in with your mobile any time, check the condition of the balance sheet and to carry out any financial transactions. Using such programs the customer must be extremely careful and accurate. If the client adheres to all the rules, he can be sure that his savings are secure . Internet banking is flooding the financial environment. Soon it might replace traditional banking services. At least now all the preparations are being made. Bank branches has long had a so-called “self-service areas” in which customers can perform the necessary operations on their own, but people can also ask the staff to train them in some operations. Young people take it for granted and almost intuitively learn to work with a variety of Internet banking applications and terminals. But it is sometimes difficult for the older generation and they need help and training. This problem is solved quite readily. Now the bank’s employees help to those who need it, but in the future society there will not be people who cannot use online banking on their own. The same issue relates to average entrepreneurs. In our world there are many people who know how to use e-banking service, but only to pay bills or debts, buy or sell something. When it comes to more significant investments or deposits, then people need advice or professional assistance. There is no invention that has changed the banking business as quickly as Internet banking revolution. World of banks reorient their business strategies to the new opportunities offered by electronic banking. E-banking has allowed banks to expand the boundaries to change the strategic behavior and thus create new opportunities. Internet banking has moved to real banking behavior, closer to neoclassical economic theory of the market. Because of the absolute transparency of the market, customers can compare the services of various banks more easily. If clients are not satisfied with the products, prices or services offered by a particular bank, they may change their banking partner much easier than in a real bank-client relationship. From the point of view of the banks, the use of the Internet has led to a significant reduction of physical banking transaction costs. Progress in the field of information technology has reduced the cost of processing information, while the Internet has its gear to facilitate the change in the very nature of the banking business. Worldwide electronic banking services, whether carried out on the Internet or through other mechanisms, spread rapidly in recent years. Internet banking has the potential to be the only form of banking services in the near future. In addition to these benefits to customers, this also has a great advantage for the whole banking system and the state. Once all the components of the financial sector go to online mode, control over economic operations will be total. Various types of fraud associated with tax evasion will become almost impossible that will have a direct positive impact on the economy of the country. It is unlikely that unscrupulous businesses that benefit from doing business in cash, are a factor that slows down the transition from the traditional banking system to the internet banking. The Internet survey clearly showed that in the future people want to be their own bankers. Since the beginning of the crisis, objectivity, relevance and tips of bankers were marred by doubts. Customers tend to become self-managers of their own wallets. In addition, citizens demand more transparency of the banking system. Clients believe that there is lack of information about how banks use customers’ savings. People want more information to take a right decision about what to do with their funds. Customers still want quality advice, but preferably from friends or family members. Customers continue to see the role of real banks, but only if they pay the right price. The survey showed that bank customers think that they pay too much for bank services . They do, however, recognize this is partly due to the high cost of bank branches. These banks, however, are not the answer to the problems noted in the survey. They do not meet the requirements for personal advice given by competent staff, which are working actively and are available on call. Efficient payment system is also clearly in demand.. The online poll shows that cash is being gradually replaced by electronic payments, which are easier, faster and more efficient. For this reason, new technologies should be adapted to the needs of the clients. Indeed, the bank’s clients sometimes have to pay for services. This is due to the fact that the bank needed funds to maintain the set of branches and employees. With the transition from real to online banking, these costs will be reduced significantly, which means the bank's services for clients will be much more accessible. Given all the above mentioned, we can say that our banking system is about to enter the online mode. And all clients will benefit if the transition goes as quickly as possible. This will also give benefits to the economy of many different countries, and direct banking system.