Banking

=== '''Banks in ICT''' === ➔     Banks use ICT for;

◆    storing customer information

◆    processing transactions

◆    all aspects of banking operations

◆    This improves competitiveness and efficiency of banking industries and provides greater convenience for customers

➔     Banks offer;

◆    home or Internet banking

Automatic Teller Machines (ATMs)
➔     allows banking transactions

➔     located in various areas (malls, bus stations, supermarkets, etc)

➔     can be used by customers of any bank to access their accounts (fee might be charged)

➔     ATMs can be used to:

◆    withdraw cash

◆    make deposits

◆    transfer funds between accounts

◆    obtain account balances

Using an ATM
➔     Using an ATM

◆    must have an ATM card issued by a bank

◆    card stores the customer’s account number(debit and credit can be used)

◆    ATM reads the info from the card (when inserted)

●     communicated with the central computer to access the customer’s account

●     info recorded on card a magnetic stripe or microchip embedded in the card

●     customer enters their PIN

●     if number is inserted wrong multiple times the ATM keeps the card

●     if PIN is inserted correctly they can carry out their transaction

○     computer makes sure the customer has sufficient funds

◆    account will be updated to reflect transaction

◆    they will receive a receipt showing the date, time, amount and type of transaction, and the transaction will be shown on the customer’s bank account statement

◆    otherwise the customer will receive a message saying transaction failed

Electronic Funds Transfer (EFT)
➔     many businesses use EFT as a means of transaction business

➔     EFT = movement of funds from one account to another electronically

➔     transferred from customer’s account to retailer’s account (when using debit or credit card)

➔     When this occurs at the point of sale or checkout

◆    EFTPOS = electronic funds transfer at point of sale

➔     Debit and credit cards are issued by banks or by independent companies

◆    visa, master card or american express (becoming most used of method payments)

➔     Debit and Credit card payment:

◆    customer gives merchant card which is read by the EFT machine

◆    account number read and used to access the customer’s bank or credit account

◆    merchant enters the amount of money to be paid

◆    sufficient fund -> money deducted from customer’s account immediately into the merchant’s account

◆    customer receives a receipt as a proof of transaction

Smart cards
➔     advanced versions of debit and credit cards (debit and credit cards have magnetic stripe)

➔     smart cards have microchips built into them

◆    magnetic strip can be altered or forged

◆    microchips are harder to tamper with

➔     smart cards provide better security

➔     smart cards have a larger memory capacity than magnetic stripes

➔     microchips will be able to store biometric data (voiceprints, fingerprints and retinal scans)

➔     no need for multiple cards