Applications of ICT in banking

AHMED.QASSIM KATIE YOUSEF ABDO GHINA

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

Advantages and Disadvantages of MICR

Advantages
All documents are read with 100% accuracy Difficult to forge because of the high quality magnetic ink used Can be read easily Super high speed of reading documents

Disadvantages
The high speed magnetic ink character readers are pretty expensive

Automated Teller Machines (ATM)

Uses of ATM
Used mostly when the bank is closed To use the service, the machine first needs to check if you are the real card holder by entering a pin If the card is stolen, no way of finding this unless you have stupidly written it down

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 of Online Banking for Banks and Customers

Advantages and Disadvantages for Banks
Advantages: Fewer bank workers(Lower total wage bill) Bank reduce number of branches(Reduce costs) Disadvantages: Spend out large amounts of money Easier to sell products(Reduce bank profits

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

MORE ABOUT ATM

Benefits to banks in using ATMs:
Few staff are needed since the computer does most of the work

Process involved in using an ATM

1. 2. Card is inserted, the ATM connects to the bank. Pin is entered, if the pin is correct the ATM checks if the card is valid then the system moves onto the next step. If card is not valid or pin is not correct, it stops. ATM checks balance, then it checks if the customer is trying to withdraw more than their daily allowance, then the system look if the receipt is required, if yes, receipt is printed, card is returned and money is received

3.

A 24 hour service is provided o satisfy their customers

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

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