ICT in Banking.

Slides:



Advertisements
Similar presentations
GCSE ICT By the end of this session, you will be able to: Explain main features of ATM machines Identify features of credit cards, debit cards, smart cards.
Advertisements

A business makes payments for what it buys, In return it receives payments for goods it sells or services it provides.
Copyright, 1996 © Dale Carnegie & Associates, Inc. BANK ON IT Money Smart Course Indiana Department of Financial Institutions.
Chapter 23.1 Use your Money Wisely
CHAPTER 25 Checking Accounts. CHAPTER 25 Checking Accounts.
Building Bucks Basic Financial Services. Financial Institutions 3 Main Types – Banks – Credit Unions – Savings and Loan Associations (S&L) Advantages.
Section 5.1: Selecting Financial Services and Institutions
Banking. Agenda Start time: ____ Break time: ____ (10 minutes) End time: ____ Please set phones to silent ring and answer outside of the room.
ICT at Work Banking and Finance.
1.7.2.G1 © Family Economics & Financial Education – Revised May 2005 – Financial Institutions Unit – Electronic Banking Funded by a grant from Take Charge.
Chapter 10 Banking.
Banking Your Money: Keeping it Safe and Secure. Who’s Who in Financial Services When it comes to taking care of your basic financial needs, the first.
Debit cards Shumate – 5th Period.
Checking Accounts & Banking Services
E-banking.
3.1 Business and employment. Banking and Finance.
Part 2: Computers used in Banking
Chapter 4 Money Management Managing Checking and Savings Accounts –Checking and savings accounts are the foundation of financial asset management –Cash.
Financial Services & Electronic Banking Ch PoB 2011.
Unit 5 BANKING –Banking Basics
E-Banking is the use of electronic means to conduct banking business, such as telephone, Internet, cell phone, or other device by way of secure internet.
Internet Auctions Users can post items for sale and set a minimum price for it. Other internet users can now bid for the item being sold. These items.
3. 18 Methods of making and receiving payments Methods of making and receiving payments Banks and bank accounts  All businesses have bank accounts.
Electronic Payment. Amounts transferred through accounts Money transfer instructions Bank’s computer system Other banks / Businesses.
17-2 Financial Services and Electronic Banking. Types of financial services Savings services Financial institutions accept money for safekeeping. A broad.
ICT in ORGANISATIONS. ICT AND BANKING Know, Describe and Understand!
Banking: Checking Account What is a Checking Account? An account where money is deposited and kept for day-to-day expenses Also called demand deposit.
Banking:
Chapter © 2010 South-Western, Cengage Learning Checking Accounts and Banking Services Banking Services and Fees 9.
ICA on-line shopping & on-line banking. On-line shopping In early days of internet this was limited due to concerns over security of personal and bank.
Banking. Beware of these high cost “financial services”!
Topic 4 : Know the features of a current account.
Key to the Future Chapter 1, Lesson 2 Warm-Up Questions CPS Questions Note for teacher: Use “Pick a Student” button in CPS.
Identity Theft  IDENTITY THEFT occurs when someone wrongfully acquires and uses a consumer’s personal identification, credit, or account information.
Unit 5 Your Money: Keeping it Safe and Secure Info from: NEFE High School Financial Planning Program.
Building Bucks Basic Financial Services. Financial Institutions 3 Main Types – Banks – Credit Unions – Savings and Loan Associations (S&L) Advantages.
Chapter 3, Section 3 ELECTRONIC BANKING.
Checking Accounts. What is a checking account? A bank account that allows easy access to the funds. You can use your checking account to pay bills. With.
Objective 4.02 Understand the banking system Classification of financial institutions.
Business Administration term project 2 (25%) financial Management Systems Debit card and credit card payments By Ashleigh Gray.
Ch. 7: Banking Services 7.1 How Banks Work
Banking Math 10 Essentials. Banking Transactions A bank is an financial institution which deals with cash, domestic and foreign, receives and stores deposits.
Checking Account. Key Terms Check Online and smartphone banking Deposit/credit Automated Teller Machines (ATMs) Debit Overdrawn Balance/reconcile Overdraft.
F INDING F INANCIAL S ERVICES AND T RACKING Y OUR M ONEY.
Mr. Stasa © You should be able to:  Identify the different parts of a personal check  Complete a personal check  Endorse.
Check It Out 1. 2 Introductions Instructor and student introductions Module overview.
GOALS BUSINESS MATH© Thomson/South-WesternLesson 3.2Slide 1 3.2Electronic Banking Record electronic banking transactions Find account balance when banking.
Learning Intentions Explain what an ATM is and the facilities offered Identify the stages of withdrawing cash from an ATM List the advantages and disadvantages.
Introduction With the development of the Internet a phenomenon known as 'electronic commerce' or 'ecommerce' for short, has been growing. Ecommerce has.
Chapter 7 Banking Services
Electronic Payment. Amounts transferred through accounts Money transfer instructions Bank’s computer system Other banks / Businesses.
Protecting Your Assets By Preventing Identity Theft 1.
1.7.2.G1 © Family Economics & Financial Education – Revised May 2005 – Financial Institutions Unit – Electronic Banking Funded by a grant from Take Charge.
TODAY’S AGENDA 1.Budgeting Project review- they are due electronically tomorrow 2.Budgeting Quiz (DVD) and test questions afterwards 3.Ch. 10 Baking 4.Ch.
Online Banking. Learning Objectives To learn how society has been affected by online banking.
Step 2 – Register a Card To register a UR Card, you can send an to or fill out the registration form at one of our awesome
Mobile Money 1/37 Fiserv Mobile Money Staff Education © 2010 Beavercreek Marketing, a division of Beavercreek Inc. All rights reserved. All trademarks.
Electronic Banking 7.3. EFT  Electronic Funds Transfer Banks ability to move money from one account to another by computer  Advantages to Banks (Cost.
BANKING/CHECKING ACCOUNTS. Banking/Checking Accounts How Banks Work Using a checking account Balancing your checking account Electronic banking Other.
Using Bank Services Chapter 33. Checking Accounts A customer deposits money in an account and receives a book of checks. May deposit or withdraw money.
Unit 9 Finance and Banking. Electronic Banking What is E-Banking Electronic banking or e- banking gives people electronic access to bank accounts and.
ELECTRONIC PAYMENT SYSTEM
Lesson 5.2 Banking Services and Fees
The impact of I.T on society
Banking.
Information on Types of Electronic Banking
Lesson 4.2 Banking Services and Fees
Financial Service Providers
Uses of Telecommunications & ICT
Presentation transcript:

ICT in Banking

Objectives Understand the applications of ICT in banking, including Electronic Funds Transfer (EFT), ATMs for cash withdrawals and bill paying credit/debit cards, cheque clearing, phone banking, internet banking)

EFTPOS Customer gives the bank card to the cashier card reader PIN Value connects to the bank The bank computer uses the account number to access the customer’s record and checks the balance

EFTPOS (2) The bank computer sends back a confirmation or rejection message to the store’s system Purchase confirmed bank computer subtracts $ from the customer’s account and adds $ to the store’s account Card/receipt returned

'Chip & PIN' Payment System The nickname for the tiny memory device inside the bankcard is a ‘chip’, and the system uses a PIN as identity proof, so the system is nicknamed ‘Chip and PIN’ in the UK.

Chip & PIN smart cards: contain a small amount of computer memory with the account information stored inside. At no time does the bankcard need to be handled by anyone other than the card owner, so with this system there is less chance of the card being stolen or copied

ATM Insert card Data read from card: valid? Enter PIN PIN encrypted & sent PIN verified Choose service Take receipt Take card

Services available: ATM Withdrawing cash Depositing money Checking the balance of accounts Transferring money between accounts Paying bills Mobile phone top-ups Ordering cheque books

Services available: Internet Banking Check the balance of bank accounts Pay bills/order cheque book Transfer money between accounts (using EFT) Apply for loans, or other services Apply for credit cards 24 online help/chat Set up accounts Download/filter statements

Services available: Telephone banking This is similar to Internet banking, but does not require a computer, only a normal telephone. Check the balance of bank accounts Pay bills Transfer money between accounts (using EFT) Speak to a bank representative to get financial advice

Telephone banking (2) You enter your account number (using the phone's number keys) You enter your PIN / secret code You then hear various options: ("Press 1 to find your balance, Press 2 to transfer money...") You pick an option (using the phone's number keys)

ATMs & customers Can use any ATM belonging to any bank More convenient 24 hour cash/statements You can bank at a time convenient to you, 24 hours a day, 7 days a week You don't need to queue up in a branch to be served.

ATMs & banks Fewer staff required More competitive

Internet banking & customers You can do almost everything from the comfort of your own home - You can bank at a time convenient to you, 24 hours a day, 7 days a week - You don't need to queue up in a branch to be served. - You don't need transport or have to waste time driving to the bank and trying to find a parking place

Internet banking & customers - You can get instant statements for your account(s). - the savings rate offered are often better than the High Street as online Banks pass on their cost savings. - It is easy to compare deals between banks and special offers - You can apply for a loan or a mortgage directly from the web site and get an answer very quickly.

Internet banking & customers Security worries, what if someone gets your bank details and withdraws your money? - If there are problems to sort out, then it is much easier to explain the problem face to face rather than having to use email or telephone - You can't easily deposit cheques or cash. You will need to visit the branch or send by post.

Internet banking & customers - Customers like to see who they are dealing with. When you go to a high street bank you will be greeted by friendly, well-trained staff. There is no such personal contact when you only use the online service.

Internet banking & banks It allows customers to access their accounts 24 hours a day without having to have branches open. - The customers do all of the work themselves so staff numbers can be reduced. - Traditional banks are very expensive to run, high street rental for a branch costs hundreds of thousands of pounds per year.On top of that are staff costs, insurance, heating and lighting costs. It has been estimated that banks can save around 50% on the cost of transactions through the use of on-line banking.

Internet banking & banks - Banks can attract new customers to their online business for a fraction of the cost it takes to get one through the door of a high street branch. - Because of the lower operating costs, internet banks can offer very attractive incentives. They often have higher rates of interest for savers and lower rates of interest for borrowers. - An advertisement in a Sunday newspaper about a new internet account can generate over 200,000 visits to the website in a day. A traditional bank could never cope with this amount of customers in a day.

Internet banking & banks Fraud is expensive. Banks lose a lot of money from fraud and online crime. - There is a need to be always one step ahead of criminals so investment must be made in coming up with new ways to keep customer accounts secure. - Less Customer contact and so it is harder to build personal relationships with their customers

Internet banking & banks - It is harder to sell other services to customers that may be on offer. When you see a customer in person, you can say, 'have you thought about this insurance / bank loan / service?' - Banks have to employ specialist web developers and expensive computers to run the site. - If the web site goes down then customers cannot access their accounts.

Telephone banking & customers You can do almost everything from the comfort of your own home - You can bank at a time convenient to you, 24 hours a day, 7 days a week - You don't need to queue up in a branch to be served. - You don't need transport or have to waste time driving to the bank and trying to find a parking place

Telephone banking & banks As for internet banking – and the disadvantages too!