Uses of ICT
Banking
Vocabulary
• Magnetic stripe reader
• Bank cheque
• Magnetic stripe
• Chip and PIN card
• Credit card
• Bank worker
• MICR
• EFTPOS
• ATM
• Home banking
• Internet banking
• On-line banking
How is ICT used in Banking?
• Read cheques
– Magnetic ink characters are used to record
information on cheques (MICR)
– Batch processing
• ATM
– on-line processing
• Internet Banking
Internet Banking
• What extra hardware is needed?
– Modem
• What operations can a customer perform?
– Check balance
– Pay bills
– Transfer money between accounts
– View statements
• When customers want to gain access to the system, they
have to log on. What two pieces of information should be
entered into the welcome screen?
– Account number
– Password
• To prevent the customers’ bank details from being
intercepted by hackers, the bank uses encryption
Internet Banking: What are the
advantages and disadvantages?
• Bank
– Advantages:
• fewer workers needed - less wages
• fewer branches needed - less rental
• workers can be less qualified - lower wages
– Disadvantages:
• customer dissatisfaction - lose business
• initial large expenditure on redundancies
• initial large expenditure on retraining
• Customer
– Advantages:
• don’t have to spend money on travelling to the bank
• don’t have to spend time travelling to the bank
• easier to transfer money from one account to another
– Disadvantages:
• hackers could hack into your account
• loss of personal touch
• cannot withdraw money