Professional Documents
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Applications of ICT in Banking
Applications of ICT in Banking
Cheque Clearing
All cheques must go through a process called cheque clearing process Numbers are printed onto the cheque by the magnetic ink character reader Cheques are all batched together at a centre operated by all the banks called a clearing centre Bank cheques are read at high speed during the clearing process
Disadvantages
The high speed magnetic ink character readers are pretty expensive
Advantages of ATM
You can get cash out You can find out the balance in your account You can make deposits You can get cash out when the bank is closed and you need cash urgently
ONLINE BANKING
Uses of online banking: View book statement Transfer money between account Make payments for bills Apply for loans
Online banking uses internet so that customers could connect to the bank ICT system when theyre at home The user has to enter login details and answer security questions to be able to use this service Details paes between bank and customers are encrypted to be safe
Advantages and Disadvantages for Customers Advantages: Dont spend live travelling Perform banking transaction anytime Easier to check on your account Disadvantages: Too many hackers Cant withdraw cash(Still need to visit a branch/ATM) Lack of personal touch
3.
QUIZ
Q1: MICR is Cheap/Expensive? A1: Expensive Q2: ATMs are closed at night. T/F? A2: F Q3: Name one advantage of online banking for customers A3: Perform banking transaction anytime Q4: Online banking is 100% safe. T/F? A4: F Q5: What process do Cheques go through? A5: Cheque clearing process
QUIZ
Q6: Magnetic ink character readers are too Slow/Fast A6: Fast Q7: Numbers are printed onto the cheque by: -OMR -MICR -OCR A7: MICR Q8: To connect to the ATM service you need 1/2 things: -Card only -Card and PIN -PIN only A8: Card and PIN