Bank Al Habib Limited

ATM System 30th 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

Consumer Banking Division

INTRODUCTION BANK AL-HABIB LIMITED

Consumer Banking Division

BACKGROUND & 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.

Consumer Banking Division

VISION

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.

Consumer Banking Division

MISSION

A place of world wide business for customer satisfaction. Bank Al-Habib at your service national wide. Give your business new opportunities of success.

Consumer Banking Division

OBJECTIVE

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

Consumer Banking Division

Administrative Structure

Director

General Manager

Deputy GM

Assistant CM

Manager

Sub Manager

CM

Sub CM

Assistant Manager

G-I

G-II

G-III

Consumer Banking Division

CULTURE

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.

Consumer Banking Division

SERVICES

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.

Consumer 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.

Consumer Banking Division

ORGANIZATION FUNCTION

Bank deal three types of functions:

General Loans & Advances Foreign exchange
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Consumer Banking Division

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.

Consumer Banking Division

History 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

Consumer Banking Division

Chronology of ATM at Bank-AL-Habib

NOV NOV 2001 2001 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.

2nd Quarter 2002

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

NOV 2001

1st Quarter 2003

Bank al Habib joins the 1 Link Switch

First ATM delivered at

ZAMZAMA branch

Research and Development

1st Quarter 2002

Compatibility with existing Banking System IT/CEBD/S&P and Audit Designing of ATM Stationery Operational Manual by Systems and Procedures

2nd Quarter 2004

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

Consumer Banking Division

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: 2: 3: 4: 5: Withdraw Cash Make a Balance Inquiry. Get an instant printout of your account balances Get a printout of your last transactions (Ministatement) on the spot. Change your PIN (Personal Identification Number).

Consumer Banking Division

Situation Prior to June 2002

Need established for Electronic Banking products

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
Consumer Banking Division

Procedure

Issuance of ATM Card

Consumer Banking Division

Accounts
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

Consumer Banking Division

ATM Application
Applications received from respective branches, where customer accounts are maintained Application process is free of charge

Consumer Banking Division

Verification 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

Consumer Banking Division

Procedure Through Diagram

No
Open Account

Customer

Bank
Not Verified

Account
Yes

ATM Card
Verified

Verification Process

ATM Application

CBD

Consumer Banking Division

PIN 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

Consumer Banking Division

Consumer Banking Division

CARD ACTIVATION
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

Consumer Banking Division

ATM 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

Consumer Banking Division

ATM 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

Consumer Banking Division

ONE-LINK / M-NET SWITCH

All banks with an ATM is your ATM
Consumer Banking Division

Need 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 MNET & 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 ecommerce framework in the country."

Consumer Banking Division

1-Link Switch
Karachi,Pakistan: April 25, 2003: 1 LINK Switch, a nationwide interbank 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.

Consumer Banking Division

Participating Banks

Consumer Banking Division

MNet 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.

Consumer Banking Division

Participating Banks

Consumer Banking Division

ATM 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

Consumer Banking Division

Communication Between the Banks

BAH (Main)

MCB (Main)

Consumer Banking Division

Consumer Banking Division

Dispute Transactions
All Settlement / Dispute Transactions

Branchs 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
Consumer Banking Division

ATM CONTEX LEVEL DIAGRAM

Security system Branch accounting system Auto-teller system Branch counter system Maintenance system
Consumer Banking Division

Account database

Usage database

Verifying Card And Pin Generation

Code
User Inaccurate Pin

Acc.Info

y
Request Pin Re-Enter

N User Service

y
Return

N
Time Out

Inaccurate

y
Re-Enter
Inaccurate

N
Return

y
Invalid Card

y N
Return

y
Capture

Theft Card

Card
Consumer Banking Division

Simple User Transaction

Insert card Readable ENTER PASSWORD

Main screen

display

Request Password

Verify Account
Account OK Request Acc type

Continuation Take Cash

Request Continuation

ENTER ACC TYPE

Transaction Succeed

Request Amount Enter Amount

Wail 5 Sec.

DISPENSE CASH REQUEST TAKE CASH

Process Transaction

Consumer Banking Division

STATE DIAGRAM FOR CLASS ATM

network response Wait for network response
Interrupt canceled messg cancel

Back

take card

cancel insert card enter passwd [readable] request passwd verify Main screen account display main screen bad passwd Account OK insert card[unreadable] Unreadable unreadable card messg cancel Cancel cancel messg bad account request Ac type cancel cancel

Card eject eject card request take card Finish print receipt continuation cancel take cash Request Continuation

enter acc type

request amount

bad account messg transaction succeed Dispense cash Request take cash process transaction transaction failed

enter amount

wait 5 sec.

failure messg
Consumer Banking Division

Advertisement

Consumer Banking Division

Entering Password

Consumer Banking Division

Account Type

Consumer Banking Division

Cash Withdrawing Options

Consumer Banking Division

Ammount

Consumer Banking Division

Verifying Account

Consumer Banking Division

Transaction Processing

Consumer Banking Division

Receipt of Cash

Consumer Banking Division

Consumer Banking Division

Entering Ammount

Consumer Banking Division

Transaction Processing

Consumer 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.

Consumer Banking Division

ATM Infrastructure
Multan (Main) EOD BOD
VSAT
Phoenix

User

ATM

Borewal a(sub)

switch

Exchange ATM

Router Modem(E1)
Server
Modem(E1)

Server

Exchange

Consumer Banking Division

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

EOD
Phoenix

MCB(OFFLINE)

VSAT

1-LINK

MNET

Service not available

BAH (MAIN-ONLINE)

MCB(ONLINE)

SUB
Consumer Banking Division

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Remote Location

Consumer Banking Division

Controlling Transaction

Consumer Banking Division

ATM Components Status

Consumer Banking Division

Host Summary

Consumer Banking Division

City Information

Consumer Banking Division

Security Issues

PIN Code Issues

Avoid writing pin code Setting password Avoid personal relevance

Consumer Banking Division

Precautions 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!

Consumer Banking Division

Telebanking & ATMs

24 Hours automated service Card Blockage in case of theft

Product Details / Branch Details

Same ATM card to be used

PIN Change Balance Inquiry Mini Statement i.e. Last 5 Transactions

Consumer Banking Division

ATM Projections
Details Present Status From January 2004 till April 25, 2004 ATM Cards Transaction Amount in PKR 12,850 1.09272 Billion 44,300 Cards 3.788 Billion 50,950 Cards 4.356 Billion 63,687 Cards 5.445 Billion End of 2004 End of 2005 (15% Increase) End of 2006 (25% Increase)

Calculation is Based upon:

From January, 2004 till April 25, 2004 From January, 2004 till December 2004 Avg Cards Per Month = 850 * 37 (Number of Weeks Left) (12850 / 15 = 850 * 37 = 31450 + 12850 = 44300) 44,300 Avg TXN Per Month = 72.8 Million * 37 (Number of Weeks Left) (1.0927 / 15 = 72.8 * 37 = 2.69537 + 1.09272 = 3.788 Billion 3.788 Billion Number of Cards 12850 Transaction Amount in PKR 1.0927 Billion

Consumer Banking Division

Future Outlook
Going into partnership with Visa Electron 300,000 ATMs all together worldwide which will be fully interconnected for Debit Card Same ATM Card will be used worldwide on all ATMs where VISA logo is displayed Transactions will be carried through Visa Settlement will take place through Visa
Consumer Banking Division

Future Outlook
UTILITY BILL PAYMENT

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

Payment of Utility Bills through IVR

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Consumer Banking Division

Machine Location

Consumer Banking Division

Future Outlook

Free Telebanking
IVR (Integration Voice Recordation)

Any Question?

Cash Deposit

Consumer Banking Division

Parts of ATM Machine

Card Reader. Key Pad. Speaker. Display Screen. Receipt Printer. Cash dispenser.

Consumer Banking Division

Parts of ATM Machine

Consumer Banking Division

ATM Card Information

Consumer Banking Division

ATM Card Information

ATM Card contains following information:

ATM Machine No. Bank No. Account No. Mega strip.

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Consumer Banking Division