1. Part 2: Computers used in Banking
Computers in Banking and Retail - Part 2 - Computers used in Banking
CEL: Computers in Banking and Retail
Part 2: Computers used in Banking
[Sec 2-4]
Name: _____________________
Class: ____________
Prepared by Tan Chai Yong

2. Computers in Banking and Retail - Part 2 - Computers used in Banking
Objectives
Give some examples of how computers are used in the bank: such as cash dispenser, cheque processing, management of customers’ accounts and on-line banking (mention how data is captured through the use of MICR, magnetic strips)
State that a personal identification number (PIN) is commonly used as a security measure when using a smart card
Prepared by Tan Chai Yong

3. Computers in Banking and Retail - Part 2 - Computers used in Banking
2.1 How Computers are Used in Banks
Computers help banks save millions of dollars annually
Prepared by Tan Chai Yong

4. Bank Computer Networking

5. Computers in Banking and Retail - Part 2 - Computers used in Banking
2.1 Bank computer networking
2.8 How Computers are Used in Other Industries
Prepared by Tan Chai Yong

6. Computers are used in Banks for………

7. Computers in Banking and Retail - Part 2 - Computers used in Banking
2.1 Computers are used in Banks for
Management of customers’ accounts
Cheque processing
Online banking
Dispense Cash using ATM
Confidential activities
Prepared by Tan Chai Yong

8. Management of customers’ accounts

9. 2.2 Management of customers’ accounts
Store information.
Store your name, address and account number.
Update information.
Update your account balance when you deposit or withdraw money or calculating interest.
Print information.
Print account balance.

10. Computers in Banking and Retail - Part 2 - Computers used in Banking
2.2 Management of customers’ accounts
Bank customer details and transactions stored in central computers or servers
A database management program is used to
Update customers’ data
Retrieve data quickly
Can be accessed by bank terminals, ATMs, POS terminals and PCs at home
Prepared by Tan Chai Yong

11. Cheque processing
How does it work?

12. Computers in Banking and Retail - Part 2 - Computers used in Banking
2.3 Cheque processing
On the cheque, the cheque number is printed with magnetic ink. [Special symbols printed on cheque]
A special machine, Magnetic Ink Character Recognition (MICR) reader reads the magnetic ink characters.
Prepared by Tan Chai Yong

13. Computers in Banking and Retail - Part 2 - Computers used in Banking
2.3 Cheque processing
(Cont’d)
MICR reader magnetizes and translates symbols
The Cheque information is then transmitted to Automated Clearing House (ACH) for sorting.
This information is fed into the bank’s database to check if there is sufficient fund and to transfer the funds into your account.
Banks able to process cheques faster and cheaper
Prepared by Tan Chai Yong

14. Online Banking or Internet banking
What are the services?

15. 2.4 Online Banking or Internet banking
Traditional Method
Consumers must be physically present to use the services

16. 2.4 Online Banking or Internet banking
Traditional Method
Consumers must be physically present to use the services

17. 2.4 Online Banking or Internet banking
Online banking allows us to make deposits, withdrawals and pay bills all with the click of a mouse via the Internet.
We no longer have to leave the house.

18. Computers in Banking and Retail - Part 2 - Computers used in Banking
2.4 Online Banking or Internet banking
Prepared by Tan Chai Yong

19. Computers in Banking and Retail - Part 2 - Computers used in Banking
2.4 Online Banking or Internet banking Services
Transactional (for examples:)
Funds transfer between a customer's savings accounts, or to another customer's account
paying bills,
Investment purchase or sale
Prepared by Tan Chai Yong

20. Computers in Banking and Retail - Part 2 - Computers used in Banking
2.4 Online Banking or Internet banking Services
Non Transactional (for examples:)
checking transactions
Loan applications
New account applications
Printing bank statement
Prepared by Tan Chai Yong

21. Using ATM [Automated Teller Machine ]
How does it work?
What are the bank services?

22. Computers in Banking and Retail - Part 2 - Computers used in Banking
2.5 Using ATMs
Commonly seen computers in banks
Prepared by Tan Chai Yong

23. Computers in Banking and Retail - Part 2 - Computers used in Banking
2.5 How does ATM work?
These terminals are networked to a central computer where database is stored.
Terminals are used to input data for each transaction.
It needs both an ATM card and a Personal Identification Number [PIN].
Prepared by Tan Chai Yong

24. 2.5 The Bank Network using ATM

25. 2.5 Bank Services Using ATMs
Offers banking services:
withdrawal of money [dispense cash],
checking of balances and
transferring money from one account to another.
Other banking services.
bidding of Certificate of Entitlement (COE).
Electronic Payment of Shares (EPS)
Getting new cheques books
Updating bankbooks.

26. A plastic card with your name and card number.
2.5 ATM Cards
A plastic card with your name and card number.
A magnetic strip at the back which stores the personal data.

27. How do you safeguard your money using ATM?

28. 2.5 ATM Cards Safe Guard your money
To safeguard your money:
Keep the ATM card in a safe place.
Keep the Personal Identification Number [PIN] a secret.
Change the PIN regularly.
Memorise the PIN and do not write it down.
If you need to write the PIN down, keep it away from your card.

29. Advantages of using Electronic Banking

30. Computers in Banking and Retail - Part 2 - Computers used in Banking
2.6 Why Electronic Banking is Popular?
Benefits to customers
Convenience
ATMs found in many places
Accessibility
Computers can work long hours
Security
All transactions are recorded
Predictability
Computers are predictable
Prepared by Tan Chai Yong

31. Computers in Banking and Retail - Part 2 - Computers used in Banking
2.6 Why Electronic Banking is Popular?
Benefits to banks
Low cost
Banks do not need to open many branches and employ many people to serve a majority of customers
Security
Security features are built into ATMS e.g. camera
Accounting
Computers makes capturing transaction records easier
Prepared by Tan Chai Yong

32. Computers in Banking and Retail - Part 2 - Computers used in Banking
2.6 Why Electronic Banking is Popular?
Computers help banks reduce cost of doing business
Prepared by Tan Chai Yong

33. 2.7 Summary Using Computers in Banking 1) Using ATMs
2) Online banking [using Internet]
3) Clearing Cheques
4) management of customers’ accounts

34. 2.7 Summary Using Computers in Banking 1) Using ATMs Transfer money
Pay bills
Withdrawal money [dispense cash]
Buy shares
Check account balance

35. 2.7 Summary Using Computers in Banking
2) Online Banking using Internet
Transfer money
Pay bills
Buy shares
Check account balance

36. Magnetic ink character recognition
2.7 Summary
Using Computers in Banking
3) Clearing cheques
Magnetic ink character recognition
reader

37. 2.7 Summary Using Computers in Banking
4) Management of customers’ accounts
[name, account no, balance, transaction ….]

38. Computers in Banking and Retail - Part 2 - Computers used in Banking
2.8 Q&A
Any of the below
Convenience
Accessibility at any time
Security
Predictability
Low cost
Accounting
Prepared by Tan Chai Yong