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Banking Technology and Operations Week 02

Diploma in FI 04 hours
Year 2
Accounts Management

Team Members
1 2

3 4

5 6

Objectives

 Understand the bank-customer relationship

 Understand the features of basic bank account and the lifecycle of account
management
 Understand the importance and bank’s needs for information, controls and
technology to manage risks

Activities (100m)

Activity #1: Bank to provide information on its product and services

Read the ABS Code of Conduct, Para 5: Information.

https://www.abs.org.sg/docs/library/cocbp_feb-2017.pdf

It states that, for a product you choose, your bank has to:
(i) explain clearly the key features and risks
(ii) state clearly the salient terms and condition
(iii) ask for proof of your eligibility

Activity: You wish to place a S$ fixed deposit. Go the DBS and Citibank’s websites.
DBS Fixed Deposit in Singapore Dollar | DBS Singapore
Time Deposit Rates | Fixed Deposit | Time Deposit | Deposits | SGD Time Deposit -
Citibank Singapore

(a)For (i) and (ii), tabulate the information that each bank provides for their S$ fixed
product.

(b) Do you feel that you are provided with enough information? Explain your answer.

(30m)

BTO Year 2
Last update: 18-04-2018
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Activity #2: CDD

1. Why is Customer Due Diligence (CDD) important?

2. Give at least two (2) methods how banks can use to identify and verify the
identity of the customers?
(20m)

Activity #3: Information needed by banks to open accounts

1. a) Select any two banks from the following list:

DBS, OCBC, UOB, Citi, HSBC, SCB, UBS
b) Visit the website or branch to obtain an account opening form (for any product)
and compare the information required by the selected two banks.
c) What are the similarities and differences?
Critique the similarities and differences.

Hints:
 Why do banks require customer information when starting a relationship?
 What are the data items requested by banks that are similar across? List the
similar data items and explain the purpose for each.
 List the data items that are requested specific to each bank. What are the
possible reasons for the respective bank in requesting for these different data
items?
(30m)

Activity #4: Account opening/maintenance

a) List the key activities involved in the account opening process and
describe the associated risks/errors if they are not managed.

Key Activity Potential Risk

b) Customer sent a request to the bank to update the address all his
accounts in the bank. There is an oversight in updating one of the
accounts. The statement was sent to the customer’s previous address
which is occupied by a new owner.

What could be the impact to the bank as well as to the customer?

(20m)

BTO Year 2
Last update: 18-04-2018
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BTO Year 2
Last update: 18-04-2018