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1. INTRODUCTION:
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Role Of Technology In Banking
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1.3 History:
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The UK's first home online banking services was set up by Bank
of Scotland for customers of the Nottingham Building Society
(NBS) in 1983. The system used was based on the UK's Prestel
system and used a computer, such as the BBC Micro, or
keyboard (Tandata Td1400) connected to the telephone system
and television set. The system (known as 'Homelink') allowed
on-line viewing of statements, bank transfers and bill
payments. In order to make bank transfers and bill payments, a
written instruction giving details of the intended recipient had
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2. OBJECTIVES:
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Role Of Technology In Banking
One area where the banking system can reduce the investment
costs in technology applications is by sharing of facilities. We
are already seeing banks coming together to share ATM
Networks. Similarly, in the coming years, we expect to see
banks and FIs coming together to share facilities in the area of
payment and settlement, back office processing, data
warehousing, etc. While dealing with technology, banks will
have to deal with attendant operational risks. This would be a
critical area the Bank management will have to deal with in
future.
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2. It's generally secure. But make sure that the website you're
using has a valid
security certificate. This lets you know that the site is protected
from cyber-thieves looking to steal your personal and financial
information.
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2. Some online banks are more stable than others. Not all
online setups are an
extension of a brick-and-mortar bank. Some operate completely
in cyberspace,
without the benefit of a branch that you can actually visit if
need be. With no way to physically check out the operation,
you must be sure to thoroughly do your homework about the
bank's background before giving them any of your money.
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Automation is key:
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Evolution:
2. The idea of direct customer services was less clear, but the
first ATM (Automatic Teller Machine) came into commercial use
in 1968. By 1995 in Europe over 100,000 were in use. In Hong
Kong there are two networks, the Hong Kong Bank system
which had around 800 ATMs in September 1994 (Business Asia
Survey) and the Jetco network linking the other clearing banks
with about 1,150 ATMs.
C-C
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C-P-C
C-P-P-C
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C-C
C-P-P-C
C-P-P-C
C-C
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CRM Tools:
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Role Of Technology In Banking
A data warehouse can help the bank get a single view of its
data across disparate systems. This comes in handy since most
banks have data spread over several disparate, sometimes
legacy systems. If the data is spread across different systems,
a transaction done on one system will not be reflected in the
other. This is not a very desirable situation when it comes to
multi-channel banking.
3. FEATURES:
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Security:
Attacks:
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Interest charges:
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for interest that collected up until the date the full balance was
paid, i.e. when the balance stopped revolving).
Benefits to customers:
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Transaction steps:
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• Mobile Accounting
• Mobile Brokerage
• Mobile Financial Information Services
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Over the last few years, the mobile and wireless market has
been one of the fastest growing markets in the world and it is
still growing at a rapid pace. According to the GSM Association
and Ovum, the number of mobile subscribers exceeded 2 billion
in September 2005, and now exceeds 2.5 billion (of which more
than 2 billion are GSM).
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Bank-focused model:
Bank-led model:
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Non-bank-led model:
Account Information:
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Investments:
4. mobile banking
Support:
Content Services:
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Handset operability:
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Security:
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3.6 ATM:
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Financial networks:
An ATM in the Netherlands. The logos of a number of interbank
networks this ATM is connected to are shown.
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Many banks charge ATM usage fees. In some cases, these fees
are charged solely to users who are not customers of the bank
where the ATM is installed; in other cases, they apply to all
users.
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Centralized systems:
Decentralized systems:
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3.8 E-Payments:
Other Benefits:
For Consumers:
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For Merchants:
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SMS banking services are operated using both push and pull
messages. Push messages are those that the bank chooses to
send out to a customer's mobile phone, without the customer
initiating a request for the information. Typically push
messages could be either Mobile marketing messages or
messages alerting an event which happens in the customer's
bank account, such as a large withdrawal of funds from the
ATM or a large payment using the customer's credit card, etc.
(see section below on Typical Push and Pull messages).
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Most SMS banking solutions are add-on products and work with
the bank’s existing host systems deployed in its computer and
communications environment. As most banks have multiple
backend hosts, the more advanced SMS banking systems are
built to be able to work in a multi-host banking environment;
and to have open interfaces which allow for messaging
between existing banking host systems using industry or de-
facto standards.
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Today, video banking has many forms, each with its own
benefits and limitations.
In-branch:
Time Convenience:
Location Convenience:
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Technology Branches:
Although video banking has many different forms, they all have
similar basic components.
Video Connection:
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• Customer authentication
• Cash Deposits
• Check Deposits
• Cash Withdrawal
• Coin Withdrawals
• Check Print
• Account Transfers
• Bill Payments
• Account inquiries
• Process New Accounts
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• USA has the highest user ratio of 32%, followed by 28% for
Singapore, 23% for Australia and 19% for Hong Kong
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Banking and paying bills over the Internet could help to prevent
one million cases of identity theft annually and reduce fraud by
$4.8 billion, new research has claimed. A report from market
research firm Javelin Strategy & Research challenges popular
assumptions that Internet transactions are less safe than
paper-based ones. The company argued that using the Internet
could protect consumers and businesses from two common
types of identity theft: fraudulent opening of new accounts, and
unauthorized use of existing accounts. Conducting banking
electronically, consumers and businesses eliminate common
means of identity theft, such as stealing personal information
contained in bills, bank statements, and credit card statements
delivered by post, or in a signed, outgoing check used to pay a
bill. In addition consumers who view and pay their bills online
are nearly four times more likely to monitor their transactions
on a regular basis than those who wait for paper bills and
monthly statements. This earlier detection was found to have
the potential to reduce identity theft by more than 18 per cent,
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Vision 2008-2010
• The vision for the ensuing three year period commencing
from 2008 holds great scope for innovation and
differentiation for the financial sector.
• One of the basic premises for this period is that IT would
continue to be the predominant factor acting as the main
catalyst in the forces of change.
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4. Conclusion:
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