Internet banking: What about businesses?

Many employees working in the financial departments of large companies need to have the authority to make payments, draw up cheques and access account details. As there may potentially be different levels of access and different restrictions based on the employee`s authorisation level, additional security measures, as well as additional checks and balances, must be introduced. It is also imperative that a fully auditable system is provided, as greater sums of money will typically be handled.

New advances have resulted in the delivery of systems that have been designed with business banking in mind, providing companies with the full range of functions used by corporate financial departments, and even integrating seamlessly with the South African Revenue Service`s recently introduced online e-filing system for submitting tax returns and making tax payments.

Companies using such a system are entrusting their corporate funds to the Internet - and their first and foremost concern is likely to be the security of their accounts. Advances in technology as well as design have made it possible to produce online business banking solutions that are practically impregnable.

Advances in technology as well as design have made it possible to produce online business banking solutions that are practically impregnable.

Andrew Mashanda, CEO, First National Bank`s Corporate Electronic Banking

From an administrative perspective, authorised cheque signatories can appoint single or multiple administrators when they enrol online. The administrator - typically the financial manager or financial director - is empowered to set up operators to perform functions such as capture transfers and payments, or authorise transfers and payments, view select accounts, and allocate transfer and payment limits for each account. The administrator can also create new operators and modify existing operator profiles; by enrolling multiple administrators, companies can ensure sufficient internal controls and protect against fraudulent transactions.

From a technology perspective, such systems introduce client digital certificates to South African banking. A digital certificate is a digital signature that binds an individual to a transaction and is an additional method of authentication to prevent electronic funds transfer (EFT) fraud. Business banking clients use their digital certificates and private keys to digitally sign off transactions, a mechanism that is used over and above the normal user ID and password used for logon purposes. Digital certificates therefore provide irrefutable evidence of who was responsible for which transaction.

Business banking systems allow multiple levels of access to various accounts, payment and transfer limits set according to specific company requirements, dual authorisations, comprehensive audit trails and access to accounts across multiple legal entities.

Furthermore, all clients using a modern banking system connect to the bank using the SSL (Secure Sockets Layer) protocol at 128-bit encryption - a level of security impossible for hackers to break.

While the greatest feature of business banking systems is certainly security, businesses also benefit from an extensive range of functionality with the unrivalled convenience of Web access.

Operators and administrators can view transaction history and balances, and have real-time access to account transaction histories. A further feature that is of considerable use to businesses is the immediate online availability of transaction histories.

There are also tools that make it easy for accountants and business owners to track specific payments.

Extensive EFT features available with online banking systems fulfil the needs of business clients, with several types of payments available - intra-group for transfers between accounts, un-nominated for once-off payments, and nominated for regular payments. Electronic payments are also guaranteed, thereby eliminating the need for costly, time-consuming bank-guaranteed cheques. Furthermore, payments can be post-dated up to 12 months in advance.

Quite simply, an online system specifically designed for business banking brings the benefits of global access and easy management to business administrators, allowing financial staff to administer the company`s pecuniary obligations with the convenience and safety that is associated with personal Internet banking and with all the features required by corporate clients. Just as we have accepted the benefits of online banking for our personal accounts, business systems save time and money by incurring charges only for those features used, and make business banking more immediate and easier.

First National Bank Corporate sponsors ITWeb`s IT in banking industry portal. Banking groups are continuously looking for fresh ways to add value to their customers, and this portal looks at the issues around maximising IT spend and improving customer service in this mission-critical data-intensive sector.