More Related Content
What's hot (19)
Similar to Banking and finances (20)
Recently uploaded (20)
Banking and finances
- 2. Banking and Finances Traditional banking transactions typically involved people, lots of paper, handing over of cash and standing in queues at bank tellers during lunch! Due to the advances of IT the landscape of banking and commerce has changed dramatically. Traditional Teller 
- 3. Electronic banking Most people view electronic banking as a way to access their cash/funds 24/7 through an automated teller machine (ATM). However, electronic banking involves a variety of transactions and is known as electronic fund transfer (EFT)
- 4. Many financial institutions use ATM or debit cards and Personal Identification Numbers (PINs) for this purpose. Some use other forms of debit cards such as those that require, at the most, your signature or a scan." Automated Teller Machines (ATM)
- 5. EFT “ uses computer and electronic technology as a substitute for checks and other paper transactions. EFT’s are initiated through devices like cards or codes that let you, or those you authorize, access your account. Electronic Fund Transfer (EFT)
- 6. Transactions include : Automated Teller Machines : where you can withdraw money, make deposits, or transfer funds between accounts. Usually in other currencies depending on where you are Direct Deposit : is where your salary can be directly deposited to your account. Also, you can set up your account for automatic withdrawals or transfers to other accounts (even other banks locally or off shore) such as credit cards, mortgage repayments, etc.
- 7. Transactions include : Tele-banking : allows you to call your bank and conduct the desired transactions. Personal Computer Banking (online banking) : access your accounts and take care of transaction via the internet. Point-of-Sale Transfers : making purchases using a debit or ATM card at the point of sale, i.e.. a shop. Inquiry : such as balance inquiries. Administrative , such as changing PIN numbers or account details.
- 8. Internet banking (Online banking) Internet or online banking is a term used for carrying out EFT and transactions over the internet through a bank's secure website. Visit your banks web site for online banking. Disadvantage : Online banking fraud is on the rise. Electronic fraud costing millions for companies.
- 9. Electronic cash Often termed digital cash or electronic money. Electronic cash is just exactly that, it is way of representing debit and credits within a corporate value system through the use of IT. It can be in the form of EFTs , direct deposits, or private currencies such as e-gold or Second Life money that can be converted to USD.
- 10. Electronic cash : Examples Singapore Government utilises E-Z link for its public transportation system. E-Z link by companies for its customer base. The Card technology is what has led to the success of this system. Smart cards in Japan. E-points in Zain
- 11. brokerage A broker is a person who mediates between a buyer and a seller. They often have a firm/company that is called a brokerage. Most people associate a broker and brokerage with stocks and the stock market. In order to buy shares in a company usually one needs to go through a broker.
- 12. brokerage Traditionally, the buyer would have to meet the seller at an exchange and then would buy shares in that company. The buyer would receive a stock certificate from the seller. Now, the buyer can go through an online brokerage (such as Sharebuilder and buy/sell shares whenever they wish without having to consult a broker or receiving a stock certificate.
- 13. Insurance Customers can now shop online and purchase any type of insurance (health, life, theft etc. ). Check out this example of an insurance company : http://www.einsurance.com/
- 14. Advantages EFT is safe, secure and speedy. Improves payment delivery service. Reliable method for performing transactions. Convenient: carry out banking after hours (don't need to rush out at lunch). Cheaper than traditional methods.
- 15. Advantages Paperless. Customer service can be improved through email and web pages. Information can be kept up to date and presented at any time. Access to global markets. Reduces service and product costs. Supply and demand can be easily monitored.
- 16. Disadvantages E commerce fraud. Attitudes toward banking electronically need changing. Reliance on IT.