TELEPHONE

BANKING
 WHAT IS TELEPHONE BANKING?

• Telephone banking is a service provided by a bank or other

financial institution , that enables customers to perform
financial transactions over the telephone, without the need to
visit a bank branch or automated teller machine.
• Along with traditional banks, phone banking is also utilized
extensively by online banking institutions, including banks
that conduct business primarily with the use of telephone
technology.
• The concept of telephone banking has been around for several
decades. Initially, the process required manual intervention by a
bank employee. Customers would call into the bank , answer
questions to verify their identities, and submit queries to the service
representative

• One advantage of this newer approach is that bank customers could

call any time of the day or night and check the status of their
accounts. As technology continued to progress, the scope of
functions that could be performed with the automated system
expanded, making the service even more valuable to customers.
 OPERATION

• To use a financial institution's telephone banking facility, a

customer must first register with the institution for the service,
and set up some password (under various names) for customer
verification
• To access telephone banking, the customer would call the special
phone number set up by the financial institution. The service can
be provided using an automated system, using speech recognition
and DTMF technology or by live customer service representatives.
 PROS & CONS
PROS
• Ease of use and potential security threats presented through access
to personal information
• Banking over a telephone system can often be more convenient than
banking in person, since some functions can be accessed even when
a bank is closed.

• This type of banking also allows various issues to be more easily

resolved for multiple customers at once, since some information and
procedures are automated and do not require human interaction.
• Telephone services can be provided 24 hours a day, unlike most
services provided at bank locations which are typically closed in the
evenings, on weekends, and on many holidays. Since telephone
banking can utilize an automated system, multiple customers can
also be helped simultaneously.
CONS

• There are some potential disadvantages with telephone banking,

however, including difficulties that may be present in accessing an
automated telephone system and security risks that can be created
by providing bank access without human interaction.
• Automated phone systems are somewhat notorious for difficulty in
use, especially older systems that may not recognize voices or other
forms of input. Newer telephone banking systems have improved upon
many of these flaws, but the menus utilized by such systems may still
be difficult to effectively navigate.

• There are also some potential security risks that arise through the use
and development of telephone banking systems. Since customers are
not actually present and face-to-face with a bank teller or manager, it
may be easier for identify theft to occur and produce
misrepresentation of customer needs over the telephone.
THANKYOU