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Introduction and History of (2 pages)
o E-Commerce
o E-banking
o Online Banking (Internet Banking)
E-Banking (5 pages)
o What is E-Banking?
o Types of E-Banking.
1. ATM
What is ATM Banking
The services it offers and its importance
2. Phone Banking
What is phone banking
What services does it offer
Types of phone banking
o Automated phone banking
o Representative (Teller) phone banking
o Internet Via Phone (Discussed later)
3. Home Banking
What is Home Banking
Requirements to setup the service
Services it offers

Continue Outline

4. Internet Online Banking
What is Online Banking? (1 page)
Types of Internet Banking
o Internet via Computers
o Internet via Phone
What differentiates Online banking from virtual banking? (1 page)
Online banking services (2 pages)
Online banking systems (1 page)
Online Banking without virtual branches (physical branches)
Appearance of ISLAMIC Banks (1 page)
o Business with Commercial banks
o Different rules
Comparison of two American Banks. (Departments, services, systems, number of employees,
number of customers, history) (2 pages)
1- C ITI Bank
2- IUCU Bank
Comparison of four Saudi Banks. (Departments, services, systems, number of employees,
number of customers, history) (4 pages)
o Al- Ahli Bank
o Al-Bilad bank
o Al-Jazeera Bank
o Al-Rajhi Bank
The difference between Banks in the USA and in Saudi Arabia (1 page)
Recommendations and Conclusions (1 page)
References (1 page)


Introduction and History
Telephones and televisions are used daily by many people; alongside these media the Internet has
become more important and useful for an increasing number of people (A Consumer Guide to E-
Payments. FTC FACTS). The Internet has existed since the late 1960s but for most of that time it was
only accessible to governments and for scientific research purposes. By the mid 1990s, as web
interfaces improved, it became available to the public and E-commerce developed, allowing
businesses to offer their products and services on the web.
E-commerce became possible in early 1990s when the Internet was opened to commercial use. With
the 24\7 availability of Internet commerce websites, it has become very important to the users to trace
and track their transactions, as they occur to ensure the account status and stability. Thus, it has
become very important to have banks that can serve, support and work with e-commerce companies
and consumers 24\7. They provide banking services and systems that connect to ecommerce websites
allowing customers to check their transactions online, allow businesses to accomplish their goals, and
allow customers to move money around to accomplish their financial transactions (Federal Trade
Commission, E-Payments).
What is e-commerce?
E-Commerce has different definitions, which at the end seem to lead to one meaning. Kalakota and
Whinston defines e-commerce:
o From a communication prospective, it is the delivery of information,
products/services, or payments via telephone lines and computer networks.
o From a business prospective, it is the application of technology to improve the
automation of business transactions and workflow.
o From a service prospective, it is a tool that addresses the desire of firms, consumers,
and management to cut service costs while improving the quality of goods and
increasing the speed of service delivery. Consumers need a high quality service, Just
In Time (JIT) service, and a faster, more secure and less expensive process.
o From an online prospective, it is the capability of buying and selling products and
information on the Internet.
To summarize, E-commerce is the purchase of goods and services (products, information, etc)
through online transactions and the transfer of funds over computer networks (Olle, 2000). These
activities occur between different parties with the support of technology networks including POTS
(plain old telephone systems), cable TV, leased lines, or wireless (Kalakota, Whinston, 1996; P4). In
addition, the process of executing commercial transactions electronically with leading technologies
such as Electronic Data Interchange (EDI), Electronic Funds Transfer (EFT) and electronic mail
support businesses to business ecommerce; these technologies also give people the opportunity to
exchange business information and do electronic transactions with businesses (Kalakota, Whinston,
Electronic Commerce; P7).
E-commerce involves buying and selling goods, purchasing and provisioning services, and making
other financial transactions over the Internet. (Poole, Lambert, Woodford, & Moschovitis, 2005). It
also involves Just In Time transactions (JIT), which avoid the problems of phone calls such as busy
signal or the call not being answered, phone call billings, which are more than internet bills cost,
shipping costs for digital goods, gas billings, less labor, etc. Therefore, ecommerce has reduced the
cost of conducting some kinds of business and has made organizations more profitable even though it
requires other costs to allow it to be established (Kalakota, Whinston, Electronic Commerce, P8).
E-commerce can reduce the cost of a business by reducing purchase order processing costs, reducing
the purchase time which increases customer satisfaction, increasing the number of purchases with less
labor, reducing the number of labor, shortening the order bill cycle, and improving security and
satisfaction while allowing consumers to track their transaction online. (Kalakota, Whinston,
Electronic Commerce, P18).
The Internet and e-commerce finally have given the connected public the opportunity to buy, sell,
collect, and exchange information easily, securely, and quickly (Olle, 2000). With the Internet and E-
commerce, the concepts of time and location have lost their importance because anyone can buy, sell,
and do business from anywhere by accessing the Internet (Olle, 2000).
Difference between Physical and Virtual Banking:
Physical banking has been the usual way that customers make use of a banking transaction and
financial services company. Physical banking involves physical branches that are located around the
most populated areas to serve their clients and allow people to compete their transactions and services
in person (Sulaiman, C.H, and Wee, 2005).
Virtual banking, which does not involve any physical action (going to a bank building, standing in a
line, and face to face communication), exists in the form of ATMs, phone banking, home banking,
and Internet banking. A virtual bank is a non-branch bank (Kemal, 2001) that involves the provision
of fully automated banking services. Online shopping has become available and more convenient, and
secure because of the appearance of online banking (Poole, Lambert, Woodford, & Moschovitis,
The major function of banking is to mobilize savings and transfers to entrepreneurs (M. Iqbal &P.
Molyneux; Thirty Years of Islamic Banking; P4). Banks, financial organizations, or financial
applications such as Microsoft banking, Quicken, ADP, and Bank Of America have found easy and
secure ways to complete commercial and individual transactions through the use of Internet
(Kalakota, Whinston, Electronic Commerce, P192). Iqbal & Molyneux also emphasized that Internet
banks are the most important financial tools and services in the modern economy.
Types of E-Banking (Virtual Banking)
There are different types of e-banking. They can be process-based as with ATM transactions, home
banking transactions, phone-banking transactions, and Internet transactions (Liao, Shao, Wang, and
Chen, 1999):
1. ATM (Automatic Teller Machine)
Automated teller machines work 24 hours a day, and are located in many different places,
especially in the most populated places, which makes them easy to find. Using an ATM requires
an ATM card and a personal PIN allowing customers secure 24 hour access to banking services
such as deposits, withdrawals, transfers, inquiries about account balances, requests for cheque
books, account statements, direct deposits, etc (FTC FACTS For Consumers, 2009).

2. Telephone Banking
By the 1970s consumers were able to use their old system home phones to dial the phone to check
their balances, transfer funds, and pay bills. Telephone banking allows customers to conduct
banking services using the phone from anywhere and any time, but its only disadvantage is that it
doesn't involve vision for the customers while producing their transactions. Customers can a
knowledge their balances and listen to the transaction, but with the ability to vision it such as
viewing it on a computer or on a paper will add more confidence, and evidence to the customer.
The phone banking services can be divided to two types:
Operator attended
These functions are for customers who have very complicated inquiries and needs that can't be
completed through automated services, or who are not comfortable with automated services, or who
have need for services that require high security. Phone banking is one of the most used and valuable
electronic services as phone and cellular's usage has spread all around the world.
These functions are for the requests that can be executed and solved by the automated system without
the need for human operators.
Mobile e-commerce & e banking
This is a solution that enhances business to consumer interactions over the Internet. People use their
cell phones' Internet features to conduct Internet banking and other business transactions
(http://www.flysyk02.netfirms.com/Ecommerce/History.htm). People can use their phones' internet
connectivity to check bank accounts, balances, statements, transfer assets among accounts, check
lines of credits, pay bills, etc (Olle, 2000).
S. Home Banking
The roots of Internet banking can be found in home banking. By the beginning of 1970s home
banking was available via touch-tone telephones, at the time banks considered this service as home
banking even though it involved the use of phones. Consumers were allowed to pay bills, transfer
funds, and check their accounts. By the mid 1980s, banks started to offer home banking services to
customers by allowing them to install software that enabled them to connect to the bank through a
dial up connection. Home banking allows customers to complete some specific financial services
directly from home. It is secure but it is limited to a variety of services that the bank and customer
agree on. After 1985, this service was not as popular and was not widespread or used by many banks
because it required proprietary systems and huge technology investments, which only a few banks
could manage. Also, at that time the PC was not widely spread among many households (H, 2004).

4. Internet Banking
Internet banking is conducted by completing bank transactions by directly accessing the bank through
the Internet. Nowadays, Internet banking customers can access many different services online, which
makes physical banks open even after office hours. In means of offline banking is becoming to be
online banking while physical banks are not opened (out of office hours), so customers do not need to
go to the banks or call them any more unless there is an issue that cannot be handled online.
Internet banking can be conducted either by accessing the Internet with a computer or by using a
phone that has Internet features.
This type of banking takes place through a portal, through which customers can use different kinds of
banking services (Xu, Shao, Wikes, and Shah, 2006). Customers can use digital signatures, which
will defined later in the banking services section, manage personal accounts, transfer funds, handle
electronic invoices, etc (Olle, 2000).
Benefits of Internet Banking
Internet banking provides benefits for the bank and for the customers using it. (Lassar et al., 2005;
Xu, Shao, Wikes, and Shah, 2006). Because an automated website can be accessed 24 hours a day, E-
Banking provides cost savings for banks because they don't need human operators to keep the bank
services functioning. As mentioned, Internet banking has reduced phone calls billings, shipping costs
for the monthly bank statement and account monthly transactions, gas billings, less labor, etc.
Therefore, ecommerce has reduced the cost of doing business and made organizations more profitable
even though it does involve other costs to allow it to be established such as maintaining complex
secure information systems and technology channels (Kalakota, Whinston, Electronic Commerce;
P8). Summarizing the benefits:
1- More transactions are carried out over the Internet than in the physical branches (Kalakota,
Whinston, Electronic Commerce; P8).
2- Banks are offering more than banking services; they are offering services on the bank website
such as tax services, as allowing customers to fill out the tax application online, calculating
the taxes, etc (H, 2004).
3- People can bank from any place that has Internet, so it is not limited to a time or a place as it
was with physical banking (Abbudah, A, 1985).
4- With Internet banking people can check their account status and use other services while
phone-banking users can only hear this information. Therefore, Customers are moving from
phone banking to Internet banking.
5- Internet banking allows customers to be alerted via email and phone of every update and
change that occurs in their account, which differentiates it from physical banking where
customers have to go to the bank to check for updates.
6- Internet banking may be more cost effective for banks, which can then lower the fees for the
customers (Abbudah, A, 1985).

"#$%&#%$ '(#)*#+ ,%&-*.%, (Sulaiman, C.B, anu Wee, 2uuS)
Opening an account
Most banks that provide Internet services allow customers to open new accounts by accessing the
bank website, logging in, filling in the application online and either submitting it online or printing it
and handing it to a teller at the branch.
Accessing account information
This service allows customers to obtain information about other services available online such as
opening and closing accounts, checking account balances, discovering and checking the latest updates
and inquires (transactions that are taking place) that affect their accounts and transactions.
Electronic Check conversion
Though this service, customers can convert a paper check to an electronic payment. This service
allows customers to take an amount from their account and put a hold on it until the other party
receives the check and withdraws it. The benefit is that normal checks take longer time to be
Transfer funds
Customeis can easily to log in to theii accounts, check theii balances, anu tiansfei funus in
between theii accounts to covei any shoitages in theii accounts.

Bank statement
This service is a bank document that customers can access through their accounts to check the record
of their transactions. This service allows customers to go over the previous year' transactions and
make sure that their has accounts have not been compromised. This document could be printed online
or saved as a word or PDF document on their computers for future evidence. Banks vary by the
number of months they allow their customers to review. For example, CHASE bank allows customers
to go a year back while IUCU allows for three months.
Purchase bank products
This service allows its customers to purchase products electronically. Products are different from
banks to banks but they vary such as cars, gold, mortgage, land, silver, etc.
Download account information
This is a service that enables customers to download any documentation of the services available
and account information. Usually, banks allow customers to download this information to make
them more comfortable with comparing the variety of services they apply with their competitors.
Usually, these documents are In a PDF format.
Pay bills
Customers have the ability to go to their accounts, log in, check their balances and check any required
payments they wish to make for their credit cards, or other bill payments that are registered on their
account. They can pay all their bills online safely, easily, and quickly.
Order check or deposit book
An order check or a deposit book is a booklet of blank checks which enables a bank account holder to
draw money from his/her checking account deposits by paying bills, paying companies, etc. Internet
banking has allowed their customers to order these checks online. Banks will send them to the
customers by mail.
Cheque reconciliation
This is the process of matching and comparing figures from accounting records against those
presented on a bank statement. Bank ieconciliation allows companies oi inuiviuuals to compaie
theii account iecoius to the bank's iecoius of theii account balance in oiuei to uncovei any
possible uisciepancies. Inteinet banking moves this seivice online to make customeis be moie
comfoitable anu secuie in use of bank seivices, which will inciease the usage of these seivices
anu customeis' satisfaction with them.
Make IRD payments
IRD is income you which is not receivable during the lifetime. IRD is subject to both income and
estate taxes, and if possible to -skip taxes, too. The most common source of IRD is an IRA or other
retirement plans. Since IRD is not received before death, it is not included on the final income tax
return. However, the estate will have to pay federal estate tax, and state death tax.
However, This is a service that banks have made it available online to clarified their customers of the
process needed to complete such service. Rather than gong to a bank, Internet banking has simplified
it to be processed electronically.
Change passwords
This service is a security issue that allows account holders to ensure that their accounts are safe from
fraud or intruders. They can change their personal passwords as many times as they want. This
service requires the customer to answer some questions, to enter their old password, and to the new
one, to verify their identity, then allowing them to change their personal password.
This is reminder or a notification for customers to inform them of any new or processed transactions
have occurred. This service also informs customers about balance issues, new products that have been
initiated, and about transactions that have been completed.
Find locations and ATM
This service informs bank customers about the locations of the bank's ATMs. This service is most
beneficial when people travel or when some ATMs are out of service or under maintenance.
Request a credit card or debit card
By using the Inteinet anu accessing the bank website, customeis aie alloweu to puichase oi
iequest a new oi seconu uebit oi cieuit caiu. These uays many people aie using uebit anu cieuit
caius, so theie is no neeu to go anu stanu a line to iequest such seivice.
Request a loan and check status
Customers can log in, and request a loan by filling in a form that requires them to enter their personal
information and loan requirements. They submit the form and receive an answer online after the bank
processes the application. Some banks prefer to respond by email, while others call the customers and
explain the reasons for denying or accepting the loan request.
Housing mortgage
This is a seivice that the bank offeis by loaning money to theii customeis who have goou cieuit
histoiies to finance the puichase of ieal estate, usually with specifieu payment peiious anu
inteiest iates. The boiiowei (moitgagoi) gives the lenuei (moitgagee) a lien on the piopeity as
collateial foi the loan. Inteinet banking is offeiing this seivice foi the customeis by iequiiing
them to fill the online application. While the online iequest if piocessing, the bankeis aie
fulfilling theii iequiiements to ensuie the customeis fulfill all the bank iequiiements.
Stock information
This service informs customers about the stock market. It sorts stock information in different ways,
such as old price, new price, etc. This service is available at most banks, but how it is presented to
customers is what differentiates this service among the banks.
Tax documents and information
Banks help their customers complete many tax tasks by offering them tax documents online, helping
them to complete and submit these forms online. Banks have become places where an account holder
can go ask questions and resolve difficulties they are facing with their taxes.
Tutorials and online banking help
Some banks are offering online help for the most popular questions and a chat menu that allows
customers to go online on the site any time to chat with a representative to solve any problems or
difficulties. Also, some banks have voice, video presentation (tutorials) explaining the process to
complete some or all of their services to make it easier, more enjoyable for their customers.
Exchange and prime rates
Customers can be all kind of nationalities. Therefore, banks offer all kind of currencies to allow their
customers and account holders to find the best exchange rate so they won't lose money while
converting currencies. By offering this type of service, the bank is showing how important their
customers are to them (Kemal, 2001). For Example, a website that I have found converts 164
currencies. This website which have being accessed daily (http://www.oanda.com/convert/classic).
Digital Signature
This is an electronic signature that can be used to authenticate the identity of the sender of a message
or the signer of a document, and possibly to ensure that the original content of the message or
document that has been sent is unchanged. Digital signatures are easily transportable, cannot be
imitated by someone else, and can be automatically time-stamped. This service applies the ability to
ensure that the original signed message arrived means that the sender cannot easily repudiate it later.
This service is a secure approach that gives the customers the safety and security they need
(Sulaiman, C.B, anu Wee, 2uuS).
Internet Banking without physical branchs'
Lately, it has been versioned that there is some Internet banking websites that have been initialized
without the visibility of having physical branches. These internet bankers such as First Internet Bank,
which can be accessed from https://www.firstib.com/index.html, have started because they realized the
importance of the electronic business and how people are increasing in the completing their financial
transactions through the banks website. These internet banking websites have contracts with other
physical banks in case that their customers need to go to a physical branch to solve a certain issue that
couldnt be solved online or by phone. Also, their clients can use these bank ATMs without any fee

Appearance of ISLAMIC Banks
Islamic banking or Internet Islamic Banking refers to a system of banking or banking activities that is
consistent with the principles of Islamic law (Sharia) and its practical applications through the
development of Islamic economics. Because Islamic Banking has its own principles and laws, it is
important to describe some important facts and principles in the Islamic religion. According to Iqbal
& Molyneux Islam Sharia has Ahkams (rules) that direct people:
1- Ibahat (worship) includes the activities that the Lord has approved or allowed. If God
disapproves it then it becomes un-Ibahat (un-worship).
2- Amalat means that every thing (rules, finance, etc) is permitted unless it is prohibited.
There are so few activities that are prohibited (Thirty Years of Islamic Banking; P9).
3- Prohibitions (Haraam and forbidden) are the activities that no Muslim is allowed to
engage in such as Riba, Gharar, and Maysir (All these names are going to be defined below).
Islam has prohibited Riba; also other religions have prohibited it too. Riba is the increase of money or
the process of increasing money by adding interest as on a loan or mortgage, etc. It is important to
know that there is no difference in a loan that has a fixed or variable, small or big, return of interest.
Where there is interest, there is Riba (M. Iqbal &P. Molyneux; Thirty Years of Islamic Banking; P4).
The literal translation of the Riba is the Arabic root Raba, which means increase and refers to the
practice of lending money at an exorbitant rate of interest. The word Riba is applied where there is a
perceived additional increase in the value of a transaction above the original value, size or amount
(Wilson 1985:24). The prohibition of Riba is relevant to the subject of insurance because it bars any
disparity between sums of money exchanged and bans all sorts of interest.
As mentioned, other religions have prohibited Riba:
Judaism: Israelites were forbidden to demand any increase on the principal amount of the sum lent in
transaction among themselves: " do not charge your brother interest, whether on money or food or
anything else that may earn interest. You may charge a foreigner interest, but not a brother Israelite.
(Thirty Years of Islamic Banking; P11)
Christianity: Saying by Christ to lend freely, hoping nothing thereby (Luke 6:35). By reading this
sentence and going to their wholly Bible, it means that every thing belong to god and either put give
it for free or give it for its value with no extra cost.

Gharar (Trading)
Any prohibition in the religion of Islam is based on the Ahadith of prophet Mohamed or on the Holy
Qur'an. Therefore, the Qur'anand the Ahadith prohibit Gharar. Gharar means to unknowingly expose
oneself or one's property to jeopardy. It is the uncertainty over the existence of the subject matter of
a sale. So if the quantity, the type, the price, and other cases are not clearly known and described,
then it is Gharar. Iqbal and Molyneux explained an example of Garar saying, "A sells B 1 kilogram
of apples for $5 involves Gharar because it is not clear what type of apples are the subject " (Iqbal &
Molyneux,Thirty Years of Islamic Banking; P11).
In conclusion, Islam has given Muslims a complete way to live where they endeavor to construct their
entire lives and culture in the light of values and principles of and by the guidance of Allah (God)
(Khorshid, Islamic Insurance, P38). In addition, Islam precludes and rejects all those transactions that
could result in speculative investment and monopoly. Therefore, Muslims with their belief and faith
in Allah, follow all the instructions that Allah and Prophet Mohamed have left them, which requires
them to not do any banking services and financial transaction that is prohibited as Riba and Gharar.
Finally, by going back to all or most of the religions, it is well clarified how interest is prohibited
which a lot of countries and baking systems are not following especially western banks.
Banks profiles:
C ITI Bank
Citibank is a an international bank, founded in 1812 as the City Bank of New York, then later First
National City Bank of New York. Citibank is now the consumer-banking arm of financial services
giant Citigroup, one of the largest companies in the world. As of March 2007, it is the largest bank in
the United States by holdings.
Citibank has operations in more than 100 countries and territories around the world. More than half of
its 1,400 offices are in the United States, mostly in the New York City, Chicago, Miami, and
Washington, D.C. metropolitan areas, as well as in California.
In addition to the standard banking transactions, Citibank offers insurance, credit card and investment
products. Their online services division is among the most successful in the field, claiming about 15
million users.
As a result of the global financial crisis and huge losses in the value of its subprime mortgage assets,
the U.S. government rescued Citibank under plans agreed for Citigroup. On November 23, 2008, in
addition to initial aid of $25 billion, a further $25 billion was invested in the corporation together
with guarantees for risky assets amounting to $306 billion (Citi Bank Website, 2009).
As mentioned on the IUCU website that credit union is a "not-for-profit cooperative institution," a
financial institution that is owned and controlled by its members, and operated for the purpose of
promoting thrift, providing credit at reasonable rates, and providing other financial services to its
members at a lower cost than other banks.
Indiana University Credit Union branches are located in Bloomington, Fort Wayne, Gary,
Indianapolis, Kokomo, New Albany and South Bend, Indiana. IUCU is committed to financial safety
and soundness.
It is a financial institution that offers 21 ATMs around Indiana State to allow customers to access
accounts as well as nationwide (IUCU Website, 2009).
Al- Ahli Bank
The National Commercial Bank is one of the most prominent of Saudi banks and was the first bank
established in Saudi Arabia. The Bank initiated business in the name of The National Commercial
Bank under Royal Decree on 26 December 1953. Since its establishment, the bank has maintained its
legal structure as General Partnership until it was converted into a Saudi Joint Stock Company in
1997 as a first step toward initial public offering. In 1999, the Government through the Ministry of
Finance's Public Investment Fund (PIF) acquired a majority holding in the Bank (Al- Ahli Bank
Wbsite, 2009).
Al- Ahli Bank website announces, "The NCB is one of the largest Banks in terms of capital in the
Arab world. At the end of 2007 the Bank paid-up capital was SR 15,000 million (US$ 4,000 million).
Its total assets at the end of year 2007 totaled SR 208,717 million (US$55,658 million). The bank by
the end of 2007 all around the Kingdom had surpassed 2 million clients. The Bank operates 1184
Automated Teller Machines and 10750 Point-of -Sale Terminals".
Also the bank website says "The Bank opeiates 2 inteinational bianches locateu in Beiiut anu
Bahiain, anu S offices in Lonuon, Seoul, anu Singapoie. It opeiates a compiehensive aiiay of
alteinative ueliveiy channels such as Al-Ahli Telephone Banking, Al-Ahli Nobile Banking, Al-
Ahli 0nline Banking, Alahli eCoip Banking, Alahli ePay Banking, Al-Ahli Tauawul Banking, Al-
Ahli Inteinational Biokeiage. Since the beginning of the 9us, the Bank has been one of the
pioneeis in Islamic Banking, pioviuing a wiue iange of innovative Islamic alteinatives foi
vaiious tiauitional seivices anu piouucts. The Bank is the biggest Financial Asset Nanagei in
the Aiab iegion anu it is the fiist to offei mutual funus in the kinguom".
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Bank Albilau is a Sauui joint stock company, establisheu by Royal Beciee 48N on 219142SB
(coiiesponuing to 4 Novembei 2uu4) with a coipoiate capital of S,uuu,uuu,uuu Sauui Riyals
(Al-Bilau Bank website, 2uu9).
Bank Albilau seeks to expanu all ovei the countiy into Sauui cities anu iegions in auuition to
pioviuing women's bianches anu banking seivices centeis. The heau office is locateu in Riyauh,
the capital city of Sauui Aiabia.
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Bank AL}aziia is iecognizeu as one of the leauing Islamic fast giowing financial institutions in
Sauui Aiabia piincipally seiving affluent inuiviuuals anu successful national coipoiations in the
As mentioneu on the bank website that "Bank AL}aziia was establisheu in }une of 197S anu
began a iestiuctuiing piocess in 1992. A new management team was appointeu in 199S to
continue the iestiuctuiing effoit, anu successfully intiouuceu state of ait technology, mouein
banking piouucts anu seivices anu ievampeu its staffing poitfolio. As a iesult the bank became
piofitable in 199S anu it steauily incieaseu the ietuin of investment since then".
Noving into the Shaii'ah (Islamic iules) compliant banking was a pieliminaiy point foi Bank
AL}aziia anu it leu to the outstanuing giowths in the past five yeais. Bank AL}aziia has achieveu
piogiessive giowth, which was mainly uue to its continuing effoits to impiove.
Bank AL}aziia is becoming a piemiei bank in Sauui Aiabia that pioviues high-net-woith
inuiviuuals anu laige institutions with innovative banking solutions that aie compliant with the
Islamic Shaii'ah in an exclusive ambiance (Al-}azeeia Bank Wbsite, 2uu9)..
Al-Rajhi Bank
Al Rajhi website specifieus that "the Rajhi bank was Founueu in 19S7, Al Rajhi Bank is one of
the laigest Islamic banks in the woilu with total assets of SR 124 billion (0S$SS billion), a
maiket capital of 0S$4 billion anu an employee base of ovei 8,uuu associates. With ovei Su
yeais of expeiience in banking anu tiauing activities, the vaiious inuiviuual establishments
unuei the Al Rajhi name weie meigeu into the umbiella 'Al Rajhi tiauing anu exchange
coipoiation' in 1978 anu it was in this yeai that the bank was also establisheu as a Sauui shaie
holuing company".
Beeply iooteu in Islamic banking piinciples, the Shaiia compliant banking gioup is
instiumental in biiuging the gap between mouein financial uemanus anu intiinsic values,
whilst speaiheauing numeious inuustiy stanuaius anu uevelopment.
With an establisheu base in Riyauh, Sauui Aiabia, Al Rajhi Bank has a vast netwoik of ovei 4uu
bianches, ovei 1uu ueuicateu lauies bianches, 2,uuu ATN's, 1S,uuu P0S teiminals installeu
with meichants anu the laigest customei base of any bank in the Kinguom. The fiist men's
bianch was openeu in Aluiiah in 19S7, with the fiist lauies bianch being openeu in Alshmaisi in
1979 (Al-Rajhi Bank website, 2uu9)
Al-Arab Bank
Al Al-Aiab website specifies that "The bank mission has been the ioau map foi leauing to the
bank's significant iole in ueveloping Aiab economies thiough financing stiategic infiastiuctuial
piojects acioss the Niuule East Noith Afiica iegion (NENA)".
The bank has Beauquaiteis baseu in Amman, }oiuan, the Aiab Bank constitutes the fiist piivate
sectoi financial institution in the Aiab Woilu.
Saiu in the website at the enu of 2uu8, Aiab Bank uioup achieveu a pie-tax piofit of 0S $1.u6
billion. Total assets ieacheu almost 0S $4S.6 billion, while shaieholueis' equity base is 0S $7.S
billion Al-Aiab Bank Website, 2uu9).
The Aiab Bank has an unmatcheu ulobal Aiab bianch netwoik with Suu bianches spanning Su
countiies in S continents. The Aiab Bank enjoys piominent positions in key financial maikets
anu centeis such as Lonuon, New Yoik, Bubai, Singapoie, Zuiich, Paiis, Fiankfuit, Syuney anu
Bahiain. Also, The bank offeis a vaiiety of piouucts anu seivices coveiing foui majoi aieas:
Peisonal Banking, Coipoiate anu Investment Banking (CIB), AB Piivate Banking anu Tieasuiy,
which aie cateieu to seive the neeus of inuiviuuals, coipoiations, goveinment agencies anu
othei inteinational financial institutions.
Saiu on the website that "0n 1Sth August 2uu8, Aiab Bank obtaineu the license to establish anu
opeiate a fully owneu subsiuiaiy in Khaitoum - Suuan, unuei the name "Aiab Suuanese Bank",
which is intenueu to offei a full iange of banking piouucts anu seivices that aie Islamic Shaiia -
compliant. The bank's paiu up capital is 0S$ Su million anu is expecteu to launch its opeiational
activities by the enu of the fiist quaitei of yeai 2uu9".
Al-Wahua Bank is Libya's fifth laigest bank with assets of 0S$ S.8S billion anu 2u% of the
maiket with 71 bianches acioss the countiy. The Bank is licenseu to caiiy out all commeicial
banking activities. Buiing eaily 2uu8, Aiab Bank plc acquiieu 19% of Al-Wahua Bank with the
iight to inciease its shaie to S1% within a peiiou of S - S yeais Al -Aiab Bank website, 2uu9).

Table of Comparison between all Saudi and American banks:


Al-Jazeera Al-Rajhi

Open account X NO NO NO NO NO NO
Access account X X X X X X X
Electronic check
Transfer funds X X X X X X X
Bank statement X X X X X X X
Purchase bank products
Download account
Pay bills X X X X X X X
Order check, book X X X X X X X
Cheque reconciliation NO NO NO NO NO
Make IRD payments NO NO NO NO NO
Change passwords X X X X X X X
Alerts X X X X X X
Bank and ATM locations X X X X X X X
Request credit\debit card X X NO NO NO NO NO
Request loan X X NO NO NO NO NO
Housing mortgage X X NO NO NO NO NO
Stock information X X X X X X
Tax documents and
Tutorials and online
banking help
Exchange and prime rates
Digital Signature X X NO NO NO NO NO
Overdraft X X NO NO NO NO NO
Investments X X X X X X X
Products for sale X X X X X X X

The difference between Banks in USA and Saudi Arabia
It has been surprising me how much the Saudi banks, consumers, and the banking clients are un-
welling to trust the Internet and its technologies. It have been since the beginning of the research on
this topic, so clear that the Saudi Banks are un-accurate of the information they provided on their
websites and are un-welling for fully internet banking implementation. Fore example, most of the
Saudi banks announce the availability of opening an account online and while processing the service
it is discovered that it is un-possible to fully accomplish it online. At the middle of the process it asks
the user to accomplish the rest of the process in the branch for security and identity issues. Otherwise,
it is fabulous to acknowledge that Saudi banks have started some of the implementations of internet
banking services, but the time have came to fully accept the implementation of the whole services to
allow costumers to forget how banks even look like physically. While contacting several bankers who
most are not involved in the IT sector, but are clustered in the banking field, they clarified that
security is an issue to the Saudi government as well as it is to the bankers, and to the clients. Also,
while the Internet and e-commerce are new to the Saudis, Clients are not fully adapted to the
mutuality of using money transactions online. With all that, still there are a bunch of services, which
are online and customers are using it such as paying bills online, and buying stocks online.
One of the biggest issues I had while trying to navigate and search for the available services on the
Saudi banks website is that most of them do not include a search engine or a site map, which
simplifies a search for any searcher.
With all what have been said about the Saudis and the Saudi banks, USA that is a highly ranked in
economy, innovation, and technology also has shortness with some of its banks services. Fore
example, IUCU does not allow customers to open accounts online too. I even found the same
problem with the IUCU, but the Citi bank website had the ability to search, so it was easy to search
for the services and try them to confirm their ability.
Recommendations and Foundlings
It is obvious of how important Internet banking have become especially with the global business that
took place in the whole world lately. In addition, with time change between investors as it is with
money currencies, it is so important to have Internet banking, which enables all the accurate
information, enables all the account processing changes, and identifies all the confusions that
customers and investors might have.
Therefore, it is obvious that Saudi Banks should implement and provide all the services that they
provide physically to be implemented electronically (online). Saudi Banks have forced in the past
their customers to use ATMs rather than being in the physical branch bank by not serving the
customers for the services that can be processed by an ATM. Also, they have employed bankers only
to serve those who are not confable or dont know how to use ATMs. Those bankers job is to be near
ATMS all working hours to ensure that customers are successfully accomplishing their services on
the ATMs. The same decision should take place by offering computers in the bank to enforce the
customers to accomplish their services online rather than standing in a queue in a bank to complete
their request.
It is found that customers can not open accounts online, can not request Cheque reconciliation online,
can not Request credit\debit card online, Request loans online, and can not request Housing mortgage
online. All these are unable to be fully processed for security and identity issues. Of course Saudis do
have a tracking and identifation system as the social security called (AHWAL).
Finally, while describing and explaining the services that banks all around include, I was explaining
what the service is for and how electronically it should be implemented. For example, at the
currencies and rate exchange, it was clear while explaining that it is an important service and tool for
customers who travel a lot or who do this kind of business of selling currencies, and for international
customers who need to exchange while transferring overseas. I gave an example of a tool that could
be used for such service and while navigating all the banks website, I discovered that they types the
rate exchange for the currencies in text with out using any calculating tool to make it more easy and
enjoyable for their customers.

With all the benefits of having the banking services accomplished from anywhere that Internet exists,
is available and with the availability of having the services 24/7, it is an issue for the Saudi to adapt to
the electronic system. Finally, the Saudi government is lunching the E-government with the mentality
of un-accepting any government documents to be accomplished physically, which means they are
encouraging the Saudis to start being involved in e-government as well as encouraging them to adopt
to e-banking or money processing through the internet.

Journals and Articles
Kallstrom, Olle (2000). Business Solution For Mobile E-Commerce. Ericsson Review, 2,
Retrieved 01-01-2009.
Ainin, Sulaiman, Lim, C.H, & Alice, Wee (2005). Prospects And Challenges Of E-Banking In
Malaysia. EJISDC, 22,1,1-11, Retrieved 01-01-2009.
E. Anguelov, Christoslav, A. Hilgert, Marianne, & M. Hogarth, Jeanne (2004). U.S
Consumers and Electronic Banking, 1995-2003. Federal Reserve Bulletin, Retrieved 01-01-2009.
Altinkemer, Kemal (2001). Bundling E-Banking Services. ACM, 44, Retrieved 01-01-2009.
Liao, Shaoyi, Pu. Shao, Yuan, Wang, Huaiqing, & Chen, Ada (1999). The Adoption Of
Virtual Banking: An Empirical Study. Pergamon, 63-74, Retrieved 01-01-2009.
A Consumer Guide to E-Payments. FTC FACTS, Retrieved 01-01-2009, Retrieved from
X. Xu, Mark, Wikes, Siobhan, & H. Shah, Mahmood (2006). E-Banking Application And
Issues In Abbey National PLC. E-Technologies, Retrieved 01-01-2009.
Poole, H. W., Lambert, L., Woodford, C., & Moschovitis, C. J. P. (2005). The Internet: A
historical encyclopedia. Santa Barbara, Calif: ABC-CLIO.
Bidgoli, H. (2004). The Internet encyclopedia. Hoboken, N.J.: John Wiley & Sons.
FTC FACTS For Consumers. FTC FACTS, Retrieved 01-01-2009, from www.ftc.gov
http:www.islamic-finance.cominuexnew.htm. Retiieveu Nay 2, 2uu9, fiom
Piompting uenuine Islamic Finance Since 1997.
Retrieved May 2, 2009, from History Of Islamic Banking.
(812uu6). IRBs anu Retiiement Accounts . Investment Auvisoiy. Retiieveu on u4-uS-
u9 fiom http://www.investmentadvisor.com/Issues/2006/August%202006/Pages/-IRDs-and-

Business servicesss Industries, SAUDI ARABIA: PROFITS OF AL-JAZEERA BANK UP
45%, retrieved on 03-20-09 by

(2001). Electronic banking: the ultimate guide to business and technology of online banking.
Braunschweig: Vieweg.
Abbudah, A (1985). Al-Nizam al-banki fi al-Mamlakah al-'Arabiyah al-Sa'udiyah .
Jeddah, Saudi Arabia.
Iqbal, M., & Molyneux, P. (2005). Thirty years of Islamic banking: History, performance, and
prospects. Houndmills: Palgrave Macmillan.
Khorshid, A. (2004). Islamic insurance: A modern approach to Islamic banking. London:
Murphy, P., & Meadhra, M. (1999). Banking online for dummies. --For dummies. Foster City,
CA: IDG Books Worldwide.

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