Management Consulting/Market risk

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Question
Money laundering has reached new levels of sophistication with the advent of technologies that eliminate traditional face-to-face interaction with customers.  A bewildering variety of electronic payment systems are currently being developed around the world, using the latest innovations in electronic baruking.

Q1)  Why these systems may prove attractive to money launderers?
Q2) Explain the term E-Banking?
Q3) Explain the advantages from the depositors (Bank Saving and Current Account holders) point of view?
Q4)  How it is different from traditional banking system?

Answer
Q1)  Why these systems may prove attractive to money launderers?
Benefits of Electronic Payments
Enabling online browsers to purchase conveniently, electronic payments could turn them into online shoppers. UK consumers now spend over £1 billion online a month (IMRG, 2002).
Speed
•   Sending cash or cheques by post for goods is slow, and has security and currency conversion implications.
Convenience
•   Electronic payments ensure that your store is open for business globally, 24-hours a day, seven days a week.
Efficiency
•   Electronic payment systems leave behind an electronic documented audit trail, streamlining your auditing and accountancy processes.
•   Bank wires are cumbersome and expensive.
•   Accepting payments online streamlines the buying cycle. By making your order, stock, purchase, payment and dispatch processes electronic, from website to back office, you don't have to re-key order data.
•   Shopping site software can be easily integrated with popular back office packages, such as Sage, to automate ordering, stock control, invoicing and accounting systems.
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Reduced costs
•   Accepting online payments means that many banking processes become automatic.
Increased customer bas e
•   Online payments take advantage of impulse buyers.
•   95 per cent of electronic purchases are by credit card. If your website doesn't offer payment by credit cards as an option, you could lose out on this market
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Q2) Explain the term E-Banking?
•   What is E Banking?
•   Internet banking (or E-banking) means any user with a personal computer and a browser can get connected to his bank’s website to perform any of the virtual banking functions.
•   The term - electronic banking covers both computer and telephone banking. In other words it is said that it is updated 'on-line, real time'. The system is updated immediately after every transaction automatically.
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Q3) Explain the advantages from the depositors (Bank Saving and Current Account holders) point of view?

•   E Banking products and services Offered in a two tier structure A basic tier of Internet banking products includes customer account inquiry, funds transfer and electronic bill payment.
•   A second or premium tier includes basic services plus one or more additional services like brokerage, cash management, credit applications, credit and debit cards, customer correspondence, demat holdings, financial advice, foreign exchange trading, insurance, online trading, opening accounts, requests and intimations, tax services, e-shopping, standing instructions, investments, asset management services etc.
•   Levels of services offered in E Banking Information Only System Electronic Information Transfer System Fully Electronic Transactional System

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Q4)  How it is different from traditional banking system?
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Differentiation of products from the others. A combination of regulatory and competitive reasons Stress on branchless banking. Increasing volumes of banking transactions. Providing customers with cost effective services
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Management Consulting

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Leo Lingham

Expertise

management consulting process, management consulting career, management development, human resource planning and development, strategic planning in human resources, marketing, careers in management, product management etc

Experience

18 years working managerial experience covering business planning, strategic planning, corporate planning, management service, organization development, marketing, sales management etc

PLUS

24 years in management consulting which includes business planning, strategic planning, marketing , product management,
human resource management, management training, business coaching,
counseling etc

Organizations
PRINCIPAL -- BESTBUSICON Pty Ltd

Education/Credentials
MASTERS IN SCIENCE

MASTERS IN BUSINESS ADMINSTRATION

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