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Consumer Banking Division Consumer Banking Division Bank Al Habib Limited ATM System 30 th November, 2004 Prepared by: Huma Yousaf MT-02-02 Rubina Yasmin MT-02-04 Fariha Nawaz MT-02-05 Ata-ur-Rab Arshad MT-02-09 Ahmad Nadeem MT-02-22 Shoaib Khalid MT-02- 12 Ghulam Rabani MT-02-28 Submitted To: Sir, Farhan Azmat Mir

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Page 1: Atm Presentation

Consumer Banking DivisionConsumer Banking Division

Bank Al Habib LimitedATM System30th November, 2004

Prepared by: Huma Yousaf MT-02-02 Rubina Yasmin MT-02-04

Fariha Nawaz MT-02-05 Ata-ur-Rab Arshad MT-02-09 Ahmad Nadeem MT-02-22 Shoaib Khalid MT-02-12 Ghulam Rabani MT-02-28

Submitted To:

Sir, Farhan Azmat Mir

Page 2: Atm Presentation

Consumer Banking DivisionConsumer Banking Division

INTRODUCTION BANK AL-HABIB

LIMITED

Page 3: Atm Presentation

Consumer Banking DivisionConsumer Banking Division

BACKGROUND & ESTABLISHMENTBACKGROUND & ESTABLISHMENT

• Sponsorship Dawood Habib Group• Experienced in Banking Habib sons Bank Limited,United Kingdom,Habib Overseas Bank Ltd., Habib African Bank Ltd(Tanzania)• Bank Al-Habib Ltd was established in October 1991.It started operations as scheduled retail commercial Bank in January 1992 trough notification of Govt. of Pakistan. The establishment is under privatization policy.

Page 4: Atm Presentation

Consumer Banking DivisionConsumer Banking Division

VISIONVISION

• Bank Al-Habib vision is to get number one grading in ranking of state Bank of Pakistan. Customer satisfaction is the key to success and have values setting for customer satisfaction.

Page 5: Atm Presentation

Consumer Banking DivisionConsumer Banking Division

MISSIONMISSION

• A place of world wide business for customer satisfaction.

• Bank Al-Habib at your service national wide.• Give your business new opportunities of

success.

Page 6: Atm Presentation

Consumer Banking DivisionConsumer Banking Division

OBJECTIVEOBJECTIVE

“ To earn money from money by providing best services to their customers is the organizational objective” “ To provide free life insurance” “ To provide disability benefits” “ Car Financing” “ Accidental Cover”

Page 7: Atm Presentation

Consumer Banking DivisionConsumer Banking Division

Administrative StructureAdministrative Structure

DirectorGeneral Manager Deputy GM

Assistant CM

Sub CM CM Sub Manager

Manager

Assistant Manager

G-I G-II G-III

Page 8: Atm Presentation

Consumer Banking DivisionConsumer Banking Division

CULTURECULTURE

The Bank Al-Habib Ltd has strong culture in its every branch. They have a set of rules and regulations. They make this thing possible that every one has to follow those rules and regulations. In Bank Al-habib Ltd there is reward system for the employees who will perform best.

Page 9: Atm Presentation

Consumer Banking DivisionConsumer Banking Division

SERVICESSERVICES

• Real time online banking• Tele banking• ATM facility• Current and deposit accounts for corporate and

individuals clients• Monthly income scheme which offer excellent rate of

profit to small server on monthly basis.• Foreign currency accounts.• Finance through loans and other credit facilities.

Page 10: Atm Presentation

Consumer Banking DivisionConsumer Banking Division

• Foreign trade• Acceptance and replacement of funds in inter bank

market.• Trade information research.• Local / Foreign Remittance.• Purchase and sale of Govt. securities and local

cheques clearance with in 24 hours.

Page 11: Atm Presentation

Consumer Banking DivisionConsumer Banking Division

ORGANIZATION FUNCTIONORGANIZATION FUNCTION

Bank deal three types of functions:

General Loans & Advances Foreign exchange

Back

Page 12: Atm Presentation

Consumer Banking DivisionConsumer Banking Division

What is ATM ?What is ATM ?

An automatic teller machine (ATM) is an electronic device which allows a bank's customers to make cash withdrawals and check their account balances at any time without the need for a human teller.

Page 13: Atm Presentation

Consumer Banking DivisionConsumer Banking Division

History of ATMHistory of ATM

• Don Wetzel invented the first successful and modern ATM in the USA .

• The concept of the modern ATM first began in 1968 .• a working prototype came about in 1969 and Docutel was

issued a patent in 1973. • Firstly ATM was cash dispenser only.• Then next version created in 1971 Which:-

• takes deposits • transfers money from checking to savings • takes payments

Page 14: Atm Presentation

Consumer Banking DivisionConsumer Banking Division

Chronology of ATM at Bank-AL-Habib Chronology of ATM at Bank-AL-Habib

• Research and Development

•Compatibility with existing Banking System IT/CEBD/S&P and Audit

• Designing of ATM Stationery•Operational Manual by Systems and Procedures

3 month Soft launch to check system viability by in-house development teamOfficial Launch on 6th June 2002 with 300 ATM Cards for our Zamzama Branch Customers.

Agreements Signed with Vendors

–Diebold ATMs - M/S Gestetner (Pvt.) Ltd.

–Phoenix/ACCeSS S/W - M/S T.P.S

–Purchase of ATM and card production software Transaction Processing Systems Ltd.

— First ATM delivered at ZAMZAMA branch

NOV 2001

NOV 2001

NOV 2001

1st Quarter

2002

2nd Quarter

2002

1st Quarter

2003Bank al Habib joins the 1 Link Switch

2nd

Quarter

2004

1 Link gets inter-connected with MCB M-Net Switch, allowing Bank-al-Habib customers a wider network of ATM facilities

Page 15: Atm Presentation

Consumer Banking DivisionConsumer Banking Division

What is ATM ?What is ATM ?

• Automated Teller Machines• Plastic Money• Alternate of Cash• Modern Form of Pocket Bank• 24 hour availability of cash

• With your new ATM card you can now:

1: Withdraw Cash 2: Make a Balance Inquiry. 3: Get an instant printout of your account balances 4: Get a printout of your last transactions (Mini-

statement) on the spot. 5: Change your PIN (Personal Identification Number).

Page 16: Atm Presentation

Consumer Banking DivisionConsumer Banking Division

Situation Prior to June 2002Situation Prior to June 2002

Need established for Electronic Banking Need established for Electronic Banking productsproducts

• Reasons attributed

• Competition among growing financial institutions

• Consumerism on the rise

• Branch/Teller load reduction strategy

• Mandatory Requirement of State Bank of Pakistan for Electronic Banking

Page 17: Atm Presentation

Consumer Banking DivisionConsumer Banking Division

ProcedureProcedure

Issuance of ATM Card

Page 18: Atm Presentation

Consumer Banking DivisionConsumer Banking Division

AccountsAccounts

• The necessary thing for the issuance of ATM card is that customer must have account in the bank.

• Accounts may be of many types but common are

• Current

• Saving

Page 19: Atm Presentation

Consumer Banking DivisionConsumer Banking Division

ATM ApplicationATM Application

• Applications received

from respective

branches, where

customer accounts are

maintained

• Application process is

free of charge

Page 20: Atm Presentation

Consumer Banking DivisionConsumer Banking Division

Verification before IssuanceVerification before Issuance

• Verification process by respective branch

managers before sending to Consumer Banking

Division

• Accuracy of Data, i.e. name, A/c Number is

verified

• Designated staff at CBD assigned to input

relevant data into Card production software• Cards are delivered to customer at the address

given in the form via courier

Page 21: Atm Presentation

Consumer Banking DivisionConsumer Banking Division

Procedure Through DiagramProcedure Through Diagram

Bank Account

No Open Account

Yes

ATM ApplicationVerification Process

Not Verified

Verified

CBD

ATM Card

Customer

Page 22: Atm Presentation

Consumer Banking DivisionConsumer Banking Division

PIN GenerationPIN Generation

• As cards leave the CBD, the pins are produced by authorized designated staff

• Pins put in dual sealed envelopes are sent to respective branches where it is maintained by designated officers and branch managers

• After production and generation of pins, the card data is migrated to the ATM software PHOENIX

• Customer receives the pin from his respective branches

Page 23: Atm Presentation

Consumer Banking DivisionConsumer Banking Division

Page 24: Atm Presentation

Consumer Banking DivisionConsumer Banking Division

Responsibility of CBD

Migration of Data into ATM Software

Responsibility of Branch

Receives the PIN and the same officer activates it by assigning ATM

Account Condition in the Banking System

CARD ACTIVATIONCARD ACTIVATION

Page 25: Atm Presentation

Consumer Banking DivisionConsumer Banking Division

ATM Limits AssignedATM Limits Assigned

Individual Account Holder

PKR 25000 per card per day

That means, PKR 10,000 per transaction and up-to PKR 25000 maximum

In Case of Joint Account holder

2 cards in case of either or survivor

The limit increases to PKR 50,000

Back

Page 26: Atm Presentation

Consumer Banking DivisionConsumer Banking Division

ATM NetworkingATM Networking

• Most ATMs are connected to interbank networks

• Enabling people to withdraw money from machines not belonging to the bank where they have their account

• This is a convenience, especially for people who are traveling

Page 27: Atm Presentation

Consumer Banking DivisionConsumer Banking Division

ONE-LINK / M-NET SWITCHONE-LINK / M-NET SWITCH

All banks with an ATM is your All banks with an ATM is your ATMATM

Page 28: Atm Presentation

Consumer Banking DivisionConsumer Banking Division

Need for ConnectivityNeed for Connectivity

• State Bank of Pakistan has made it a mandatory Requirement for all Banks offering ATM services to join 1 Platform/switch

• As of March 16,2004 the two main switches M-NET & 1-Link have been inter-connected thus allowing account holders to draw cash at any ATM location nationwide

• On this occasion Governor SBP Dr.Ishrat Hussain remarked :

““the financial sector has moved closer towards achieving e-commerce framework in the country."

Page 29: Atm Presentation

Consumer Banking DivisionConsumer Banking Division

1-Link Switch1-Link Switch

• Karachi,Pakistan: April 25, 2003: 1 LINK Switch, a nationwide inter-bank shared network was officially launched at a ceremony held at ABN AMRO Bank today.

• 1 LINK represents some of the largest banks of Pakistan that have joined hands to provide convenience of nation-wide self service banking to their joint customer base and to any other bank that joins 1 LINK switch.

• 1 LINK member banks include Allied Bank, ABN AMRO Bank, Habib Bank, Askari Commercial Bank, United Bank Limited, Soneri Bank, Union Bank, Bank Al-Habib, Bank Al-Falah, National Bank and PICIC Commercial Bank.

• 1 LINK is an expansion of the currently operational "ATM Switch" network, which was co-founded by ABN AMRO, Askari Bank and Habib Bank several years ago.

• With this historical launch, 1 LINK will become the largest ATM network in the country allowing respective member banks' customers’ instant access to cash from over 200 ATMs in different cities nationwide.

Page 30: Atm Presentation

Consumer Banking DivisionConsumer Banking Division

Participating BanksParticipating Banks

Page 31: Atm Presentation

Consumer Banking DivisionConsumer Banking Division

MNet SwitchMNet Switch

• SBP wants the two operators to ensure uninterrupted availability of service to cardholders at all facilities and touch points of the two switches

• At present there are two independent platforms operating in the country. One known as MNET is wholly owned and operated by MCB

• The member banks on MCB owned MNET switch are: Citibank; Standard Chartered; American Express; Faysal Bank; Habib Bank AG Zurich; First Women Bank Ltd; HSBC; Credit Agricole Indosuez; Bolan Bank Ltd; Saudi Pak Bank Ltd; Bank of Punjab; KASB Bank; Bank of Khyber; Prime Commercial Bank; Metropolitan Bank Ltd; Mashreq Bank Pakistan Ltd; Deutsche Bank Ltd.

Page 32: Atm Presentation

Consumer Banking DivisionConsumer Banking Division

Participating BanksParticipating Banks

Page 33: Atm Presentation

Consumer Banking DivisionConsumer Banking Division

ATM charges with Participating BanksATM charges with Participating Banks

• Rs.15 per withdrawal on any amount

• No charge on balance inquiry

• Rs.15 per withdrawal on any amount

• Rs. 5 on balance inquiry

Page 34: Atm Presentation

Consumer Banking DivisionConsumer Banking Division

MCB (Main)BAH (Main)

Communication Between the Banks

Page 35: Atm Presentation

Consumer Banking DivisionConsumer Banking Division

Page 36: Atm Presentation

Consumer Banking DivisionConsumer Banking Division

Dispute TransactionsDispute Transactions

All Settlement / Dispute Transactions

• Branch’s own customer Branches themselves on a daily basis do

the balancing and settle right away

• All other cases related to 1 Link or MNET must be forwarded through CBD and settlement time takes 10-15 days approximately

Back

Page 37: Atm Presentation

Consumer Banking DivisionConsumer Banking Division

ATM CONTEX LEVEL DIAGRAMATM CONTEX LEVEL DIAGRAM

Auto-tellersystem

Securitysystem

Maintenancesystem

Accountdatabase

Usagedatabase

Branchaccounting

system

Branchcountersystem

Page 38: Atm Presentation

Consumer Banking DivisionConsumer Banking Division

Verifying Card And Pin GenerationVerifying Card And Pin Generation

Capture Theft Card

Invalid Card

Time Out

Card

y

Returny

N

N

Returny

N

Request Pin

User

CodeInaccurate

Pin

Re-Enter

Inaccurate

y

y

Re-Enter

Inaccurate

Return

y

N

N

N

Acc.Info

User Service

Page 39: Atm Presentation

Consumer Banking DivisionConsumer Banking Division

Simple User TransactionSimple User Transaction

Main screen display

Request Password

VerifyAccount

Request Acc type

Request Amount

Process Transacti

on

DISPENSE CASHREQUEST TAKE

CASH

Request Continuation

Take CashTransaction Succeed Enter

Amount

Continuation

Insert cardReadable

ENTER PASSWOR

D

Account OK

Wail 5 Sec.

ENTER ACC TYPE

Page 40: Atm Presentation

Consumer Banking DivisionConsumer Banking Division

STATE DIAGRAM FOR CLASS ATMSTATE DIAGRAM FOR CLASS ATM

Wait for networkresponse

Interrupt canceled messg

Main screen display main screen

request passwd verifyaccount

requestAc type

Unreadable unreadable card messg

Cancelcancel messg

request amount

process transaction

Card ejecteject card ;

request take card

Dispense cashRequest take cash

Request Continuation

take cash

cancel transaction succeed

Finishprint receipt

bad account messg

failure messg

enteramount

network response

takecard

continuation

insert card[readable]

enter passwd cancel

bad passwd

cancel

cancel

Account OK

wait 5 sec.

cancel

transaction failed

bad account

enter acc type

insert card[unreadable]

cancel

Back

Page 41: Atm Presentation

Consumer Banking DivisionConsumer Banking Division

AdvertisementAdvertisement

Page 42: Atm Presentation

Consumer Banking DivisionConsumer Banking Division

Entering PasswordEntering Password

Page 43: Atm Presentation

Consumer Banking DivisionConsumer Banking Division

Account TypeAccount Type

Page 44: Atm Presentation

Consumer Banking DivisionConsumer Banking Division

Cash Withdrawing OptionsCash Withdrawing Options

Page 45: Atm Presentation

Consumer Banking DivisionConsumer Banking Division

AmmountAmmount

Page 46: Atm Presentation

Consumer Banking DivisionConsumer Banking Division

Verifying AccountVerifying Account

Page 47: Atm Presentation

Consumer Banking DivisionConsumer Banking Division

Transaction ProcessingTransaction Processing

Page 48: Atm Presentation

Consumer Banking DivisionConsumer Banking Division

Receipt of CashReceipt of Cash

Page 49: Atm Presentation

Consumer Banking DivisionConsumer Banking Division

Page 50: Atm Presentation

Consumer Banking DivisionConsumer Banking Division

Entering AmmountEntering Ammount

Page 51: Atm Presentation

Consumer Banking DivisionConsumer Banking Division

Transaction ProcessingTransaction Processing

Page 52: Atm Presentation

Consumer Banking DivisionConsumer Banking Division

Question is HOW all these ATM and Debit Card Transactions take place after

Hours ?

• End of day Phoenix transfers all the

balances on ATM Server and transactions are

carried through those available balances

• During Card Production Same card is activated

for Debit Card.

Page 53: Atm Presentation

Consumer Banking DivisionConsumer Banking Division

ATM InfrastructureATM Infrastructure

User ATM

ServerModem(E1)

Exchange

Exchange

ATM

Modem(E1) Server

Router

Phoenix

Borewala(sub)

Multan(Main)

switch

VSAT

EODBOD

Page 54: Atm Presentation

Consumer Banking DivisionConsumer Banking Division

Phoenix

MNET1-LINK

SUB

MCB(ONLINE)

MCB(OFFLINE)

VSAT

BAH (MAIN-ONLINE)

Case-1Case-2Case-3Case-4

Service not available

EOD

Back

Page 55: Atm Presentation

Consumer Banking DivisionConsumer Banking Division

Remote LocationRemote Location

Page 56: Atm Presentation

Consumer Banking DivisionConsumer Banking Division

Controlling TransactionControlling Transaction

Page 57: Atm Presentation

Consumer Banking DivisionConsumer Banking Division

ATM Components StatusATM Components Status

Page 58: Atm Presentation

Consumer Banking DivisionConsumer Banking Division

Host SummaryHost Summary

Page 59: Atm Presentation

Consumer Banking DivisionConsumer Banking Division

City InformationCity Information

Page 60: Atm Presentation

Consumer Banking DivisionConsumer Banking Division

Security IssuesSecurity Issues

• PIN Code Issues

• Avoid writing pin code

• Setting password

• Avoid personal relevance

Page 61: Atm Presentation

Consumer Banking DivisionConsumer Banking Division

Precautions For Making TransactionPrecautions For Making Transaction

Keeping of card at secured place

Take the card out before transaction

Stand directly in front of the ATM

Cares after making transaction

Vehicle parking

Be alert!

Page 62: Atm Presentation

Consumer Banking DivisionConsumer Banking Division

Telebanking & ATM’s Telebanking & ATM’s

24 Hours automated

service

Same ATM card to be used

Balance Inquiry

Mini Statement i.e. Last 5 Transactions

PINChange

Product Details / Branch Details

Card Blockagein case of theft

Page 63: Atm Presentation

Consumer Banking DivisionConsumer Banking DivisionConsumer Banking DivisionConsumer Banking Division

ATM Projections ATM Projections

Details Present Status From End of 2004End of 2005 (15%

Increase)End of 2006 (25%

Increase)

January 2004 till April 25, 2004

ATM Cards 12,850 44,300 Cards 50,950 Cards 63,687 Cards

Transaction Amount in PKR 1.09272 Billion 3.788 Billion 4.356 Billion 5.445 Billion

Calculation is Based upon:

Number of CardsTransaction Amount in PKR

From January, 2004 till April 25, 2004 12850 1.0927 Billion

From January, 2004 till December 2004Avg Cards Per Month = 850 * 37 (Number of Weeks Left)(12850 / 15 = 850 * 37 = 31450 + 12850 = 44300)

44,300 3.788 BillionAvg TXN Per Month = 72.8 Million * 37 (Number of Weeks Left)(1.0927 / 15 = 72.8 * 37 = 2.69537 + 1.09272 = 3.788 Billion

Page 64: Atm Presentation

Consumer Banking DivisionConsumer Banking DivisionConsumer Banking DivisionConsumer Banking Division

Future Outlook

Going into partnership with Visa Electron

300,000 ATM’s all together worldwide which will be fully interconnected for Debit Card

Same ATM Card will be used worldwide on all ATM’s where VISA logo is displayed

Transactions will be carried through Visa

•Settlement will take place through Visa

Page 65: Atm Presentation

Consumer Banking DivisionConsumer Banking DivisionConsumer Banking DivisionConsumer Banking Division

UTILITY BILL PAYMENT

Payments to PTCL and Sui-Southern Gas Through the same ATM

Payment of Utility Bills through IVR

Back

Future Outlook

Page 66: Atm Presentation

Consumer Banking DivisionConsumer Banking Division

Machine LocationMachine Location

Page 67: Atm Presentation

Consumer Banking DivisionConsumer Banking DivisionConsumer Banking DivisionConsumer Banking Division

Future Outlook

Free Telebanking

IVR (Integration Voice Recordation)

Cash Deposit

Consumer Banking DivisionConsumer Banking Division

Any Question?

Page 68: Atm Presentation

Consumer Banking DivisionConsumer Banking Division

Parts of ATM MachineParts of ATM Machine

Card Reader.

Key Pad.

Speaker.

Display Screen.

Receipt Printer.

Cash dispenser.

Page 69: Atm Presentation

Consumer Banking DivisionConsumer Banking Division

Parts of ATM MachineParts of ATM Machine

Page 70: Atm Presentation

Consumer Banking DivisionConsumer Banking Division

ATM Card InformationATM Card Information

Page 71: Atm Presentation

Consumer Banking DivisionConsumer Banking Division

ATM Card InformationATM Card Information

ATM Card contains following information:

ATM Machine No.

Bank No.

Account No.

Mega strip.

Back