BISMILLAH HIR RAHAMANIR RAHIM

Md. Zahid Hassan ID No- B Semester: 3 rd Sec: 2(D)

Computer in Bank and Insurance

Computers in Banks Customer Information Banks use computers to track customer information such as name, address, phone number, date of birth, Social Security number and place of employment. This information is used to stay in touch with customers and notify them of any changes in bank policy. A customer address is needed to send out statements on a monthly basis. A customer's account number is also stored in the computer, which gives bank employees the ability to access customer information efficiently.

Products The number of products and services a customer has is also stored in computers. Bank personnel will periodically call customers at home to offer them a product or service, such as a home equity line of credit. It helps to know which products a customer already has before any new products are offered.

Transactions and Goals Computers help tellers keep a record of all transactions for the day. When customers make deposits and withdrawals, cash checks, open checking accounts or apply for mortgage loans, a computer will store and track all of the information once a teller or bank employee keys it into the system. Branches have goals for lending and new accounts.

Credit Applications A bank can use computers for new loan applications and credit card applications Chex Systems verification and opening new accounts such as checking, savings or certificate of deposit accounts

Delinquency Computers can be used to track customers who are delinquent on their loan and credit card payments. Computers can generate separate reports for customers who are 30-, 60- and 90-days delinquent on their accounts. When a 30-day delinquency report is generated, a collection representative can contact the customer for resolution, which helps keep delinquency under control.

Miscellaneous Computers can keep a record of all communications that a bank employee may have with a bank customer including activity. A bank can also use a computer to see which safety deposit boxes are available and they can keep a record of customers who have safety.

Computers in Insurance To Make Risk Assessments Before insurance policies are issued, an insurance company assesses the risk of the applicant by using various algorithms to determine how likely that applicant is to file a claim. The higher the risk, the more they charge for the policy. Underwriting also may lead to application denials. Underwriters rely on computer programs into which they input a slew of information. The computer then analyzes the data and provides a risk assessment.

To Pay or Deny Claims Insurance claims examiners rely on computers to review insurance claims, doctor’s reports, investigative notes and actual insurance policies to determine whether the company will pay a claim or demy its merit. Most of the information is relayed online, through document-sharing programs and computerized copies of the policies

To Stay Abreast of Regulations and Rules Information is passed from federal government agencies and state insurance commissioners electronically to insurers who rely on up-to-date, real-time reports on changes that affect their industry. Insurers rely on effective websites and alerts from associations such as the National Association of Insurance Commissioners (NAIC) that serve members by staying abreast of changes and distilling the information in electronic reports on a regular basis.

To Attract and Retain Customers Like most industries, insurance companies look to mobile computer applications, social media outlets and do-it-yourself online products to attract and retain customers who demand more access. According to CSC, a global next-generation technology provider, insurance companies can reach customers by taking advantage of new technology as it progresses and move away from the traditional Legacy systems that have dominated traditional insurance computer practices

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