Scenario 1: 1989
It's a regular day at work, except that today you've had to cut down on your lunch time. Reason: You need to go to the bank two streets away. Nothing out of the ordinary. You just need to update your passbook and stop the auto-renewal instruction on your 6-month FD. And while you're at it, you also have to inquire about the interest rates on short-term deposits.

You hop over to the bank and anticipate you'll be out in 5-10 minutes, but ... The new computer system installed is malfunctioning, so you cannot check on your balance or update your passbook. And because of the system malfunction, there is a long queue at the counter to get your FD cashed.

You end up spending 35 minutes in the bank and get yelled at by your boss when he doesn't find you on your desk long after the scheduled time.

Scenario 2: 2000
It's a regular day at work, except that you're also going to get your bank work done without cutting down on that much-needed lunch time. How? Net Banking, of course. You just need to log on to the bank's website from your desktop PC, enter your secured password and check on your account balance. And while you're there, you will also fill an on-line form to leave instructions for the account manager to cash your maturing FD. On your way out (i.e., before you log off), you will also glance at the current interest rates for their short-term deposits. Total time spent: 4.5 minutes. That too without leaving your desk!

That's the reality of net banking. But what does it mean for the average customer? Is it user-friendly enough to be used by anybody? Is it safe? Can a computer illiterate use it? These and many more such questions will be answered by the time you're done with this article. So read on ... while we demystify the world of net banking for you.

What is net banking?
Electronic banking (or net banking) refers to an application of the Internet that allows customers to can dial into bank networks or their websites, using their own telephones and computers, and to get a host of banking services directly on their home or office PCs.

Net banking offers you armchair convenience and access to your account information from anywhere in the world, at any time of the day or night. That means, as long as you have a computer, a modem, a phone line and an Internet account, you don't need to worry about bank holidays or taking time out to go to the bank, or standing in long queues for a simple transaction! You can access most of the bank's services from the comfort of your home/office!!

How widespread is the phenomenon?
A recent survey of 220 financial institutions by Booz-Allen & Hamilton revealed that, by 2000, about 42 per cent of customers planned to use corporate banking services based on Internet and Intranet. Bank Austria is reported to have attracted 34,000 on-line customers within a few months of introducing its web-based service. SE Banken, the largest Swedish bank, has more than 60,000 customers who access the bank via the Internet. And the Bank of Finland boasts of 2 lakh on-line customers generating about 14 per cent of its consumer payments. (See resource box for more)

Nearer home, ICICI Bank, Citibank and HDFC Bank, to name a few, also offer net banking to their customers. Let's take a look at the major players in the Indian market and what they have to offer. (see comparison table)

ICICI Bank
ICICI Bank's website (www.icici.com) hosts a very user-friendly net banking service - Infinity - with detailed explanations of all relevant terms (as pop-ups) provided on the site and on-line registration of accounts permitted. The service includes a demo to take first-time users through the various offerings and also tries to address security concerns of skeptics by explaining the technology used in Infinity.

A unique feature of this site is a customisable news channel that provides news on personal finance, e-commerce, information technology, etc. Also noteworthy are its highly readable FAQ pages and the option to "download account details in text format".

HDFC Bank
HDFC Bank's website (www.hdfcbank.com) also sports a feature-rich net banking service that brings most of the bank's services to its clients in an easy-to-use manner. The site also features two versions of a demo facility - one "interactive" and the other "guided" - making it possible for even Internet illiterates to get comfortable with its services.

On the downside, however, 'registration' for the service involves downloading of a form that needs to be posted/delivered to any of its branches - not exactly "web savvy" as we would call it. Also, the form itself requires Adobe Acrobat Reader to be installed and the file size will exceed 5.5 MB, which translates roughly into an hour or more of on-line time. Its 3-question FAQ page also assumes a high level of computer knowledge from users ... not consistent with the rest of the website.

Global Trust Bank
This bank's net banking service (www.globaltrustbank.com) seems to revolve around a "ibank@gtb" caption with very little information for beginners to utilise the services offered. Account holders are instructed to download an application form and submit it at the branch where they hold the account.

There is no mention of the fact that the form is a PDF document (requiring Adobe Acrobat Reader), nor of the file size or how long it will take to download it. In fact, even on the website, you will not be able to see the net banking link unless you scroll down to the second screen! The website does mention most of the services that others in the field are offering on the Net, but we can only guess how they would compare with the services offered by their counterparts.

Citibank
I had an even tougher time locating the net banking link on Citibank's website (www.citibank.com) and I sympathise, in advance, with those of you who wish to explore this one.

When you do find it, however, you find that you can do a lot with it, including some services targeted at Citibank's credit card holders. The site does not have any demo and assumes users to be fairly comfortable with technology and the Internet.

IndusInd Bank
IndusInd's website (www.indusind.com) is another example of a badly designed net banking offering that could be made much more customer-friendly. However, it does feature a "net demo" to help its clients get a feel of the services on offer.

Conclusion
The above-mentioned five banks represent a small percentage of the banking sector in India and range from very well-designed offerings to sketchy beginnings. But today's technology is making it possible for even computer illiterates to access their accounts from their home PCs, and there's no telling what that will mean for banking and for the personal finance industry as a whole.

Tomorrow's banks may very well be devoid of a physical entity, and may comprise only ATMs and web-based services, facilitated by terrestrial or satellite links. And, as more and more customers become used to anytime, anywhere, anyhow banking, there is no denying that net banking will be the face of things to come.