Computer and the bank - SS2 Commerce Lesson Note

A computer plays a crucial role in modern banking operations. Banks use computers to store and manage vast amounts of financial data, process transactions, and provide various services to their customers. Computers enable banks to handle tasks efficiently and securely, ensuring accuracy and reliability in financial operations.

Ways computers are utilized in the banking industry:

·         Data Storage and Management: Banks use computers to store and manage customer account information, transaction records, loan details, and other financial data. This allows banks to access and retrieve information quickly and accurately when needed.

·         Transaction Processing: Computers enable banks to process various transactions, such as deposits, withdrawals, fund transfers, bill payments, and loan applications. When a customer conducts a transaction, the computer system ensures that the appropriate account balances are updated and the transaction is recorded accurately.

·         Online Banking: Banks provide online banking services through their websites or mobile apps, allowing customers to access their accounts, perform transactions, check balances, view statements, and manage their finances remotely. Computers serve as the underlying technology that powers these online banking platforms, ensuring secure and convenient access to banking services.

·         Automated Teller Machines (ATMs): ATMs are computer-based self-service machines that allow customers to withdraw cash, deposit funds, check balances, and perform other basic banking transactions. ATMs communicate with the bank's computer systems to process these transactions securely.

E-Banking (Electronic Banking):

E-banking, also known as electronic banking, refers to the use of electronic channels and technology to conduct banking activities and transactions. It allows customers to access banking services remotely through computers, smartphones, or other digital devices. E-banking encompasses a range of services, including online banking, mobile banking, electronic fund transfers, and electronic bill payments.

Features and benefits of e-banking:

·         Convenience: E-banking provides convenience by allowing customers to access their accounts and perform transactions anytime and anywhere, without the need to visit a physical bank branch.

·         Accessibility: E-banking ensures accessibility to banking services for individuals who may have difficulty accessing physical bank branches due to geographical limitations or physical disabilities.

·         Time and Cost Savings: E-banking eliminates the need for customers to wait in long queues or travel to bank branches, saving time and transportation costs. It also reduces paperwork and administrative tasks, streamlining banking processes.

·         Security: E-banking employs advanced security measures such as encryption, secure authentication, and monitoring systems to protect customer information and ensure secure transactions.

·         Expanded Services: E-banking often offers additional services such as online bill payment, account alerts, electronic statements, and the ability to apply for loans or open new accounts electronically.