Ict in Banking
ICT in Banking
Banking Facilities have been Improved due to ICT. People can now pay for goods using not only cash but plastic cards, cheques and direct debit cards. Smart cards can also be used to pay for goods over the internet. A person can now bank from home using the telephone or internet or even through their mobile phones. A person also no longer needs to go to the bank to take out money. Cash machines mean that people can take out money without having to visit the bank. Cheques have also changed due to ICT. Cheques can now be cleared easier and quicker through the use of Magnetic Ink Character Recognition (MICR).
Extensive use of ICT in Banks:
• Magnetic Ink Character Recognition (MICR)
• Bankers' Automated Clearing Services (BACS)
• Automated Teller Machines (ATM)
• Electronic Funds Transfer at Point of Sale (EFTPOS)
• Electronic Funds Transfer (EFT)
• Smart Cards MICR:
These are the strange looking numbers at the bottom of a cheque. They are written in a special magnetic ink, and have the advantage that they can be read by a reader connected to a computer, or by a person. Once the cheque is written the bank sort code, the account number, the cheque number. When the cheque is being cleared, the cheque amount is also written. BACS
The Bankers Automated Clearing Services have used computers to carry out most financial transactions between banks. These include:
• clearing cheques
• paying in salaries
• payment of standing orders or direct debits
The BACS does its processing by batch processing, in which all transactions from the previous day are processed at one time. The processed data is passed between banks on magnetic tapes. Logs are kept of all the transactions. Banks were among the first organisations to use mainframe computers. Many of these are still at work today, as they are very good at this routine number-crunching. It still takes up to a week for a cheque to clear. ATM
Automatic teller
Banking Facilities have been Improved due to ICT. People can now pay for goods using not only cash but plastic cards, cheques and direct debit cards. Smart cards can also be used to pay for goods over the internet. A person can now bank from home using the telephone or internet or even through their mobile phones. A person also no longer needs to go to the bank to take out money. Cash machines mean that people can take out money without having to visit the bank. Cheques have also changed due to ICT. Cheques can now be cleared easier and quicker through the use of Magnetic Ink Character Recognition (MICR).
Extensive use of ICT in Banks:
• Magnetic Ink Character Recognition (MICR)
• Bankers' Automated Clearing Services (BACS)
• Automated Teller Machines (ATM)
• Electronic Funds Transfer at Point of Sale (EFTPOS)
• Electronic Funds Transfer (EFT)
• Smart Cards MICR:
These are the strange looking numbers at the bottom of a cheque. They are written in a special magnetic ink, and have the advantage that they can be read by a reader connected to a computer, or by a person. Once the cheque is written the bank sort code, the account number, the cheque number. When the cheque is being cleared, the cheque amount is also written. BACS
The Bankers Automated Clearing Services have used computers to carry out most financial transactions between banks. These include:
• clearing cheques
• paying in salaries
• payment of standing orders or direct debits
The BACS does its processing by batch processing, in which all transactions from the previous day are processed at one time. The processed data is passed between banks on magnetic tapes. Logs are kept of all the transactions. Banks were among the first organisations to use mainframe computers. Many of these are still at work today, as they are very good at this routine number-crunching. It still takes up to a week for a cheque to clear. ATM
Automatic teller