1. Cashless Society E-Learning 1 (31 st Jan – 1 st Feb 2008)

2. Instructions Read through the presentation slides on “Cashless Society” You are then supposed to do Activity 1, 2, 3 and Review Exercise CEL 4 Submission Deadline 4 th February 2008 (Monday) Late submission will be dealt with severely.

3. Objectives 1.Give examples of how computers are used in the bank, such as for cash dispensing, cheque processing, management of customers’ accounts and online banking 2.Mention how data is captured through the use of OMR, MICR, magnetic strips and barcodes 3.State that a personal identification number (PIN) is commonly used as a security measure when using a smart card 4.Understand that the trend is towards cashless electronic transactions

4. Introduction Computers are used in many places Popular because Cost reduction Communication Growth of Information and Communication Technology (ICT) industry

5. Computers in Banks Commonly seen computers in banks

6. Back-office operations Confidential activities Cheque processing Management of customers’ accounts Online banking Computers in Banks

8. Benefits to customers Convenience ATMs found in many places Accessibility Computers can work long hours Security All transactions are recorded Predictability Computers are predictable Computers in Banks

9. Why Electronic Banking is Popular? Benefits to banks Low cost Banks do not need to open many branches and employ many people to serve a majority of customers Security Security features are built into ATMS e.g. camera Accounting Computers makes capturing transaction records easier

10. How Data is Stored On identity cards Magnetic strips Manufacturing cards with magnetic strips is cheap Magnetic strips reader are affordable

11. Smart chips Computer chips that store information Identification information How Data is Stored

12. Smart chips Safer than magnetic strips Credit card companies turning to smart cards because Credit card fraud Difficulty in counterfeiting smart cards Extra security Bonus features How Data is Stored

13. Using OMR (Optical Mark Recognition) How Data is Stored

14. Using OMR Simplify data entry Becoming popular because OMR scanning is Fast Accurate Cost effective Easy to implement and support How Data is Stored

15. Using MICR (Magnetic Ink Character Recognition) Used in bank cheques Computerises the cheque clearing process Special symbols printed on cheque How Data is Stored

16. Using MICR Computerises the cheque clearing process MICR reader magnetizes and translates symbols Cheque information transmitted to Automated Clearing House (ACH) Cheques also read and sorted with a MICR reader/ sorter at the ACH Banks able to process cheques faster and cheaper How Data is Stored

17. Using Barcodes Used to store information Cheap to make Easy to read How Data is Stored

18. Cashless Electronic Transactions Increasingly popular E-commerce Internet banking

19. Disruptive Technology Implementing new technology often leads to job losses initially Workers’ jobs replaced by computers New technology Makes life better Lower business costs Businesses grow and new jobs created

20. The End

21. You are reminded once again to do Activity 1, 2, 3 and Review Exercise CEL 4 Submission Deadline 4 th February 2008 (Monday) Late submission will be dealt with severely.