Banking Technology

 Introduction
 Computerisation
 Internet Banking
 Mobile Banking
 ATMs
 Introduction
Banking:
In general terms, the business activity of accepting and safeguarding money owned by
other individuals and entities, and then lending out this money in order to earn a profit.

Banking Technology:
In the word ‘Banking Technology’, ‘banking’ refers to the economic, financial, commercial
and management aspects of banking while ‘technology’ refers to the information and
communication technologies, computer science and risk quantification and measurement
aspects.
The term “banking technology” refers to the use of sophisticated information and
communication technologies together with computer science to enable banks to offer better
services to its customers in a secure, reliable and affordable manner, and sustain
competitive advantage over other banks.
 Different constituents of Banking Technology

Banking Technology

Information Computer Communication Marketing Finance and Risk

Technology science technology science management
Important events in evolution of Banking
Technology
 Arrival of card based payments
 Introduction of Electronic Clearing Services
 Introduction of Core Banking Solutions (CBS)
 Introduction of Automated Teller Machines (ATMs)
 Introduction of Phone and Tele Banking
 Introduction of Internet and Mobile Banking
 Introduction of RTGS/NEFT
In past 10 years, banks in India have invested heavily in the banking technology such as
Tele banking, Mobile banking, net banking, ATMs, credit cards debit cards, electronic
payment systems and data warehousing to bring improvements in quality of customer
services and fast processing of banking operations.
1. Computerized Banking System
Computerized Banking System is a
banking establishment to manage
customer data. computerized banking
system for creating customer account of
whole world. Also known as
computerized banking management
system (CBMS),customer account
records management, customer
transaction control or customer data
report’s system.
The objective of computerized banking system
are as follows:-
Opening new customer’s account
Account modification/updation
Deletion/Close an account
Withdrawal's
Deposit
Balance enquiry
Customer’s information
Need and requirements of Computerized
Banking System:-
Numerous Transactions
Instant Reporting
Reduction in paper work
Flexible reporting
On-line facility
Accuracy
Security
Advantages and disadvantages of
Computerized Banking System:-
Advantages:-
Convenience
Transaction Speed
Efficiency
Effectiveness
Disadvantages:-
Cost of Installation
Cost of training
Maintenance
 Less Secure
 2. Internet Banking
Internet Banking is the use of electronic means to transfer funds directly from one account
to another, rather than by cheque or cash.

Definition:-
A system of banking in which customers can view their account details, pay bills and
transfer money by means of the internet.
Services -
 Viewing Account Balance
 Downloading Bank Statement
 Ordering Cheque Book
 Bill Payment
 Credit Card
 Recharge your phone
 Ticket Booking
 Shopping
 Advantages
Cost less
Transaction speed
Efficiency
Speed banking
Vast coverage
Issues in Internet Banking
•Security
•Learning Difficulties
•Lack of skilled personnel
•Technical breakdowns
•Inexpensive
 3. Mobile Banking
Mobile banking is a service provided by the banks or other financial
institution that allow its customers to conduct financial transactions
remotely using mobile devices.
Mobile banking service is available on 24 hours basis. This facility is
dependent on the availability of an internet to the mobile devices.
From the bank’s point of view it reduces the cost of handling the
transactions by reducing the need of customers to visit a bank branch for
non cash withdrawal and deposit transactions.
Mobile banking doesn’t handle the transactions involving cash.
 Types of Mobile Banking
Banks provide mobile banking services to their clients in the ways listed here:

Mobile banking over Wireless Application Protocol. [ by simply download the mobile app
of concerned bank]

Mobile banking over SMS. [ mobile banking services over SMS.]

Mobile banking over unstructured supplementary services data. [ by using USSD code
provided by banks . Popular in rural areas.
Services -
 Account balance enquiry
 Account statement enquiry
 Cheque status enquiry
 Cheque book request
 Fund transfer between accounts
 Minimum balance alert
 Bill payment
 Recent transactions history request
 Information requests like interest
rate/ exchange rate
 Advantages and Disadvantages
o ADVANTAGES:
Simple and easy to use
Transmitted data are secured
Almost every handset can support this feature.
 No need to go for bank branch.

o Disadvantages:
Requirement of smart phones
Regular use of mobile banking may lead to extra
charges
Sometimes have security issues.
4. ATM
The automated teller machine
(ATM) is an automatic banking
machine (ABM) which allows
customer to complete basic
transactions without any help of
bank representatives.
 How to use an ATM
 Safety First
 The Card Reader
 Enter PIN
 Choose a Transaction
 Pay the Fees
 Collect the receipt
 Finish up
 Advantages of ATM
 The ATM provides 24 hours service.
 The ATM provides privacy in banking
communications.
 It reduces the work load on bank staff.
 It may give customer new currency.
 ATMs are convenient to banks
customers.
 ATM is very beneficial for travellers.
 Disadvantages of ATM
 If problem with credit card you cannot withdraw your money.
 If someone watches or hacks an ATM machine, your details may be
taken.
 If you forget your PIN you cannot use your card.
 Possibility of misusing ATM card: if misplaced, lost or stolen, may
be misused.