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ICT in ORGANISATIONS. ICT AND BANKING Know, Describe and Understand!

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Presentation on theme: "ICT in ORGANISATIONS. ICT AND BANKING Know, Describe and Understand!"— Presentation transcript:

1 ICT in ORGANISATIONS

2 ICT AND BANKING Know, Describe and Understand!

3 What is BANKING? Banking refers to how money is managed online, from how businesses deal with money to how customers manage their bank accounts; paying bills, checking their account etc..

4 Banking technology MICR (magnetic ink character recognition) CHIP and PIN ATM (automated teller machine) ONLINE BANKING

5 MICR Data is entered on the cheque manually. “Pay C. Coleman Twenty Thousand Pounds…” The cheque is then read through a MICR reader machine. It reads the magnetic ink. The bank teller manually checks the value written and the account details on-screen. Cheques from a bank are sent to clearing centre and are processed in BATCHES. (Batch Processing). This is why there is a waiting time on cheques to ‘clear’

6 Good and bad of MICR Advantages of MICRDisadvantages of MICR Quick to read into a machine in a bank.MICR machine is expensive. Difficult to forgeCheques not accepted by many organisations any more. Readable even if torn or folded.

7 ATM MACHINES Data is inputted using the keypad and option buttons. Card Reader Touch Screen Data is checked by comparing entered details with that stored on record at the bank. Outputted information is displayed on screen. Receipts can also be printed and cash given. ATM machines process in REAL TIME. WHY? (think about withdrawals) Mini-Statement Pay Bills Withdraw Cash Transfer money Top-up Phones

8 BENEFITS / DRAWBACKS OF ATM Advantages of ATM for customersDisadvantages of ATM for Customers 24/7 access to cash (no queues etc.)Security issues: card readers Pay bills and other services.Not always in convenient places. Advantages of ATM for BANKSDisadvantages of ATM for BANKS Staff can do other thingsCost money to run ATM systems No need to have a lot of banksPay people to manage ATM

9 Online Banking Advantages: Available 24/7 NOT just 24/7 Online promotions e.g. Higher interest rates for savings accounts / Lower interest rate loans etc. Save travel time going to bank / saves queuing time in a bank/ faster access to services Save travel costs Increased market awareness - visit all the banks and find out what interest rates they offer online. Empowers the disabled Faster to set up online account transfers Global access/ banking on the go

10 Online Banking Disadvantages: The closure of small, local branches or reductions in opening hours The security of online banking, specifically hacking and credit card fraud. Identity fraud Lack of human interaction Forget their passwords

11 Services offered: View account balances Open savings account Apply for overdraft Apply for a mortgage Apply for a credit card View recent transactions Download bank statements, for example in PDF format for printing Order replacement cards Transfer funds between the customer's accounts Pay third parties, including bill payments (see, e.g., BPAY) and Loan applications and transactions Set-up/cancel direct debits/standing orders Change personal details Foreign exchange currency Online help

12 ICT AND E-COMMERCE Know, Describe and Understand!

13 What is E-Commerce? Trading online via the internet, mobile and e- mail communications. Examples include: Tesco.com, Amazon.com, ebay.co.uk, play.com, iTunes …

14 Good & Bad for the Customer Advantages for CustomerDisadvantages for Customer Shop 24/7Cannot see the product Can shop aroundExtra delivery costs Can read reviews before buyingSecurity ? Fake sites Shop from homeHidden costs? VAT etc Disabled accessHard or difficult to return items Wider choice: global market

15 Good & Bad for the BUSINESS Advantages for BusinessDisadvantages for Business Business can stay open 24/7More competition online Reach a wider market: globalSite could be hacked Little start up costsIf site goes down – costly Fewer staff neededExtra dependence upon delivery companies etc.. No shop etc. needed

16 Data Capture (How is data captured) How do you buy something online? Talk me through the process from selection to purchase. 1 Browse items Add items to trolley ‘basket’ 2 Checkout Enter personal details (keyboard & mouse) Complete online form 3 Connect to secure site Enter card details (keyboard and mouse) Complete online form 4 Confirm payment Read confirmation e-mail.

17 Checking & data processing CHECKING – What validation will take place in e-commerce? Think about when the user registers / enters data. – What visual checks will be needed? Think about what the customer will need to check before confirming the order? PROCESSING The order is placed immediately. This is REAL TIME PROCESSING. Why do you think this is needed in this situation? Think about the goods and reserving them for the customer.

18 output Once an order is placed: 1.Stock is updated (stock control). 2.The order is confirmed on screen. 3.An e-mail is sent to the customer.

19 ICT AND PAYROLL & MODERN MAIL HANDLING Know, Describe and Understand!

20 What is Payroll? Everyone gets paid for the work they do. Payroll systems manage the people who work for a business and ensure they get paid the correct amount and tax etc. is paid.

21 Data capture in payroll The hours which people work need to be logged. This can be done in many different ways: – Clocking on Card – inserted into a machine which stamps the time of start and end. – Swipe Card – people swipe on and off the job. – Manual entry – sign in and out of a sign in and out book. – Timesheet entry – each week an employee can submit a time sheet which lists all the hours they have worked and what they have done.

22 How is data processed Timesheets or data is checked against other time records – when the employee was supposed to work. Entered into a computer manually using a keyboard. All time records for every employee are kept together in a batch. Payment is then processed in one go. This is BATCH processing.

23 How is data checked Payslips all relate to finance. As a result totals can be checked using hash or batch totals. Remember our topic on validation. Do you remember what these terms mean?

24 Payroll output Payment is processed and sent to bank accounts for employees. A wage slip is also produced which gives out important information: Date Payroll number Cost centre number / department NI Number Address Month number Tax code Gross pay to date Net pay to date Tax to date NI to date Superannuation/Pension contributions to date Gross pay Net pay Tax NI Pension contributions Total hours worked

25 Something else: modern mail E-Mail? Mail Merging? What is this and where is it used? – Think about bills and standard adverts. Data is entered using a computer: keyboard and mouse. Data is checked by the user and mistakes corrected. E-Mail: Processed in REAL TIME – sent instantly. MAIL MERGE: All letters are produced in a BATCH.


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