This article analyzes the importance that information systems have had for Financial Institutions, as is the case of Electronic Banking. We will see the evolution of banking in our country and the situation in which we find ourselves.
Since although we have had a great advance in electronic commerce, this business is just beginning and that is why we see some areas of opportunity that we have.
One of the main concerns that we Mexicans have is security.
Cyber fraud to cardholders is a problem that the Mexican Banking has had and that is why we are looking for security systems that instill confidence in us in order to have a culture of online banking.
1. introduction
Finance, the art of managing money. Many people will think that the term "finance" is only for those who are dedicated to managing capital. And they are in serious error, since
Who does not handle money in these times? Everyone does finance, everything around us revolves in an economic environment.
Money is an exchange mechanism, but to make these exchanges more than one person is needed, one who sells something and that something needs the other.
Sometimes the operation is not so simple, and a third party is needed, in many cases these are the Financial Institutions.
Financial Institutions have changed their way of operation over the years. Every day they have become more efficient by looking for ways in which their clients have more benefits from being with them.
Information systems have been largely the engine of these changes, since each day we are more surprised by the multiple operations that we can do from our home, car or office.
This article shows the evolution of banking in Mexico thanks to these Information Systems and the advantages and disadvantages that this brings us, which more than disadvantages is an aspect of opportunities for companies.
Security for users, as well as some of the mechanisms that Banks have been using to protect their clients.
2. Evolution of Information Systems for Banking in Mexico
Around 1900, according to Don Carlos Aguilar Villalobos, there were only banks in some cities in the country, so if you wanted to open a savings account, you had to go to the bank office, each of which had its own autonomy.
By 1960 all operations had to be done manually, this required a lot of time. The most common operation was deposits to savings accounts.
When the accounts were opened, the clients signed the cards and these were kept to check if it was the same signature when it came to cashing a check. Some other bank activities such as granting loans were exclusive to some classes of companies.
All these mechanisms were changing in the late 1960s, as significant economic growth is coming and this is where the computer age in banks begins.
Each of the branches worked independently of the others. By the 1970s, it began with the development of technology, since files stored on tapes were created with computers to eliminate those saved cards.
Starting in the 1980s, there was a device to verify the signatures of checks, shortly after this method disappeared, entering the electronic keys to register them.
The Telefax was useful to give notices from one place to another and even from other countries. Soon after, the auto-response system was used, which made possible direct transmission between a central bank and all branches..
In 1969 credit cards made it possible to manage personal information of clients. However, each time the customer wanted to make a purchase, the store had to speak to the Bank to review the possibility of the charge.
The On-line system comes from the year 1979, which achieves a record at the time the operation occurs, thanks to this customers could check balances at branches without waiting several days for transactions to be made.
Years later came ATMs, which automated various services provided by banks, such as cash withdrawals and service payments. The payroll card comes a few years later.
By 1988, telephone banking supported by satellite, central and fiber optic systems began to have a very high utility.
It is at the end of the year 1999 when the services were offered through the web, however the portals of the financial institutions were launched until the year 2000.
It is here when the client no longer has to go to the ATM or even call on the phone to carry out his affairs, but in the comfort of his home he can do his movements and banking services.
Electronic banking, according to an important financial group, has made banks have a very large customer acquisition, since today in just 3 months banks manage to accumulate around 220 thousand customers, whereas thirty years earlier they would have taken more than three years.
3. Situation of Banking in Mexico
In our country, the Electronic Banking business has been very successful and in a short time the number of bank clients has multiplied. Mexico is among the countries with the highest use of Electronic Banking, according to a study by Unisys, followed by Australia and the United States.
According to Alejandro Pineda Mosiño, director of Commercial Banking channels at BBVA-Bancomer (January 9, 2006) "In five years, it was practically possible to do the same number of financial and non-financial transactions over the Internet as at teller windows"
The Consultant Select (March 2003), made a study from which we can analyze the following graph that shows us the regions of the country that have the largest online banking services.
Figure 1. Results of the study by the Select Consultant for Online Banking users (Select, March 2003).
And it is that the online banking the client can carry out all the operations that he does in a bank window.
Some of the services that users can do are balance inquiries, account statements, daily movements, transfers, deposits, investments, payment of basic services, payment of basic services, interbank payments, among others.
The way in which banking has come to revolutionize the market is so great that one could think that there is no growth.
However, Online Banking is being born and there are many weaknesses that the Financial System together with the Information Systems must improve.
Since one of the main concerns of Mexicans is the security they have.
In an interview with Dr. José Eduardo Miranda (Director of the Finance Career at Tec, Guadalajara campus) he commented on some personal differences between Electronic Banking in the United States and Mexico.
Among the characteristics of Foreign Banking are: that the system is more developed, is more integrated, interbank operations are easier, since he says, here in Mexico, it is sometimes difficult to carry out these interbank operations through the Internet, in The United States charges you less commissions for services, the systems are much more friendly and accessible, and one of the points in which he made the most emphasis was on Security, as he comments, in Banks such as Bank of America they have very security systems strong to avoid cyber fraud to account holders
According to the newspaper El Universal (January 13, 2006), during 2005 frauds committed through online banking amounted to 25 million pesos. Master Card points out that 62% of purchases are not recognized by card owners.
The following Table (Table 1), shows the main factors that influence the use of Electronic Banking, according to Clara Centeno in this way, Opportunities for improvement can be sought from both users and institutions to get the maximum benefit that this brings with him.
Table 1. Clara Centeno, IPTS
| Factors related to access technology and infrastructure | Specific factors of the Internet banking sector | Other socioeconomic factors |
| Penetration (personal computers, Internet) | Trust in banking institutions | Institutional trust |
| Computer skills (personal computers, Internet) | Banking culture | Family income level |
| Concern for security and privacy | Electronic banking culture | Rate of inflation |
| Access cost | Internet banking advertising push | Volume of the underground economy |
4. Banking Security
Mexico is making progress in electronic security, as its Banks are increasingly incorporating more into security mechanisms that prevent identity theft, as is the case with the Identrus System.
This system, according to Sara Cantera, consists of issuing a certificate for both the associated Bank and the client, and the banks will be in charge of reviewing the entire identity of their clients and the security of the team in which they make their movements, from This way a card certification will be done.
This certificate according to consists of two devices that is the chip of the card and a USB port for the computer, when the client wants to use Online Banking he will have to introduce his card to the port to obtain a key before the transaction is authorized, he explained. Catherine McGrail, spokeswoman for Bladex.
According to Victor Carpizo, director of products of MasterCard in Mexico "the distrust of the cardholder and the losses generated by frauds to the commerce, are the main brakes for the advancement of electronic commerce", that is why MasterCard, VISA and Banamex designed Secure Code, which helps customers to recognize their purchase with a password.
Banamex for its part granted the Netkey security system, which has the function of a Biper, and gives the client a key to make movements, according to Banamex, thanks to NetKey it reduced fraud by 70% from 2004 to date.
5. Conclusion
We know that this Information Systems is not something new, it comes from decades ago, however, they are changing day by day.
That is why the Financial Institutions must always be with the latest technological systems, since it is not only an Institution that could provide us with its services. There is a lot of competition and that is why they must offer different and better ways of doing things so that customers are useful to them according to their convenience.
We can realize the importance of Information Systems for the growth of Banking, and that although it has been growing very fast in our country, this is about to begin, that is why the importance of preparing ourselves with all those points that the Client sees important for them and which have been an obstacle to make their banking movements online.
Security is one of the biggest obstacles, that more than an obstacle can be a stop, an opportunity to improve, and in this way create a culture of online banking.
The development of new systems such as the Identrus, Netkey, is important to increase the security of your clients, since as we saw, the theft of passwords is quite easy to carry out.
Electronic banking as long as it is used correctly is not insecure, that is why you should seek an increase in culture on the part of banking users, and in this way seek the benefit for both parties, since among older be the people who use this system the individual costs will be lower.
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