BANKING TECHNOLOGY

INTERNET BANKING
• Internet Banking allows you to conduct bank transactions
online, instead of finding a bank and interacting with a
teller.In a broad sense, it is the use of electronic means to
transfer funds directly from one account to another, rather
than by cheque or cash. A system of banking in which
customers can view their account details, pay bills, and
transfer money by means of the internet. It offers easy and
instant access for making financial transactions from any
device (e.g PC, Labtop, Mobile phone) connected to the
Internet. It also has 24 hour availabilityIn the past time, you
have to visit the bank and required to wait to request a
financial transaction or statement.
 FEATURES OF INTERNET BANKING
• Bank statement ,with the possibility to import data in a
personal finance program such as Quicken or Microsoft
Money
• Electronic bill payment
• Fund transfer between a customer’s own checking and
saving accounts , or to another customer account
• Investment purchases or sale
• Loan application and transactions, such as repayment
• Account aggregation to allow the customers to monitor all
of their accounts in one place whether they are with their
main bank or with other institution
SERVICES
• Bill Payment
• Credit Card
• Insurance
• Customer services
• Recharging your prepaid phone
• Shopping
Who can use internet banking
Step 1: Access Internet Banking - Obtain your
User ID and Passwords.
Step 2: Create your Own Unique User ID.
Step 3: Link the Account Number to your User ID
Advantages
Vast coverage
Round –the –Clock Banking
Convenient Banking
Low –Cost Banking
Profitable Banking
Quality Banking
Speed Banking
Service Banking
Issues in internet banking
• Security
• Learning difficulties
• Lack of skilled personnel
• Technical breakdowns
• Long start up time
 MOBILE BANKING
• Mobile Banking is an application that lives on
a mobile phone, which access and
manipulates their bank accounts at anytime &
anywhere. Mobile Banking is a system that
allows customers to perform a number of
financial transactions through a mobile
device.Monitoring our Bank accounts through
the Mobiles, is known as Mobile Banking
 Mobile Banking Services:
• Balance Enquiry.
• Mini Statement Enquiry. (Detail about last 5 transactions)
• Cheque Status Enquiry.
• Cheque Book Requests.
• Fund Transfer between Accounts.
• Credit/Debit Alerts.
• Minimum Balance Alerts.
• Bill Payment Alerts.
• Utility Bill Payment.
• Generate OTP.
• ATM Location.
• IMPS- Interbank Mobile Payment Service.
• Manage self Accounts.
• Mobile Top-up and DTH recharge
 Why Banks Promote Mobile Banking?
• Improve customer service and satisfaction.
• Reduce Operating costs. (Cheaper than ATM
Exp.)
• Time Saving Process.
• Increase the customer retention.
• Transaction become more faster.
• Provide multiple services under single mobile.
• Also improve the branding.
Customers’ Behavior:
• Save Customer’s Time and Energy.
• Reduces Dependency on Bank Branch.
• Generate More Transactions.
• Become more educated.
• Aware of their money.
• Access their account 24 hours in a week.
(24X7)
Banks’ Behavior:
• Cost effective for Banks.
• Be able to Generate More Loyalty.
• Increase number of customer by attracting
feature.
• Reduce the crowding in bank branch.
• It enables the bank to be better connected with
their customer.
• Helps to retain the valuable customers.
Mobile Banking Advantages:
• Simple and Easy to use.
• Menu based Application Program.
• Transmitted data are secured.
• Almost every handset can Support this feature.
• No need to go for Bank Branch.
• Handle all type of Transactions from anywhere
at anytime.
 ATMs
• An ATM is an electronic device which allows a bank’s
customer to make cash withdrawals and check their
account balance at any time without the need for a
human teller.Many ATMs also allow to deposit cash or
checques, and to transfer money between their bank
accounts.
• An automated teller machine (ATM) is a computerized
telecommunications device that provides the customers
of a financial institution / bank with access to financial
transactions in a public space without the need for a
human clerk or bank teller round the clock (24 hrs a day)
History Of ATM
• The ATM was invented by Scot John Shepherd-
Barron.
• The world's first ATM was installed in a branch of
Barclays in the northern London borough of Enfield,
Middlesex, in 1967.
• A mechanical cash dispenser was developed and
built by Luther George Simjian and installed in 1939
in New York City by the City Bank of New York
 Functions of ATM
• 24-hour access to cash
• View Account Balances & Mini-statements
• Order a Cheque Book / Account Statement
• Transfer Funds between accounts
• Refill your Prepaid card
• Pay your utility bills
• Deposit cash or cheques
• Change your PIN
• Learn about other products
 PARTS OF THE ATM SYSTEM:
• Card Reader
• Keypad
• Speaker
• Display Screen
• Receipt Printer
• Cash dispenser
• Deposit slot
• Screen buttons
 HOW ATM WORKS:
• The ATM acts as a data terminal. ATM has to connect to or communicate through a host
computer.
• The host computer is analogous to an Internet Service Provider(ISP).
• The host computer is the gateway through which all the various ATMs become available to
the user.
• In an ATM system customers authenticate themselves by using a plastic card with a magnetic
stripe which is known as “ATM CARD”.
• The magnetic stripe encodes the customers account number and a numeric password which
is known as “PIN” (Personal Identification Number).
• The ATM prompts the user to insert the card.
• When the card is entered the customer’s PIN is requested.
• The customer inputs his or her PIN.
• If the card is a valid card which can be processed by the machine then it prompts the user to
either transfer, deposit or withdraw cash.
• If the number is entered incorrectly several times in a row most ATMs will retain the card as a
security precaution to prevent an unauthorized user.
• ATM needs and stores customer’s data on a smart card.