Cashless Society E-Learning 1 (31 st Jan – 1 st Feb 2008)
-
Upload
jared-osborne -
Category
Documents
-
view
214 -
download
1
Transcript of Cashless Society E-Learning 1 (31 st Jan – 1 st Feb 2008)
Instructions
Read through the presentation slides on “Cashless Society”
You are then supposed to do Activity 1, 2, 3 and Review Exercise CEL 4
Submission Deadline
4th February 2008 (Monday)Late submission will be dealt with
severely.
Objectives1. Give examples of how computers are used
in the bank, such as for cash dispensing, cheque processing, management of customers’ accounts and online banking
2. Mention how data is captured through the use of OMR, MICR, magnetic strips and barcodes
3. State that a personal identification number (PIN) is commonly used as a security measure when using a smart card
4. Understand that the trend is towards cashless electronic transactions
Introduction Computers are used in many
places Popular because
Cost reduction Communication Growth of Information and
Communication Technology (ICT) industry
Back-office operations Confidential activities
Cheque processing Management of
customers’ accounts Online banking
Computers in Banks
Benefits to customers• Convenience
ATMs found in many places
• Accessibility Computers can work long hours
• Security All transactions are recorded
• Predictability Computers are predictable
Computers in Banks
Why Electronic Banking is Popular?
Benefits to banks• Low cost
Banks do not need to open many branches and employ many people to serve a majority of customers
• Security Security features are built into ATMS e.g.
camera
• Accounting Computers makes capturing transaction records
easier
How Data is Stored
On identity cards
Magnetic strips Manufacturing cards with magnetic strips is
cheap Magnetic strips reader are affordable
Smart chips Safer than magnetic strips
Credit card companies turning to smart cards because Credit card fraud Difficulty in counterfeiting
smart cards Extra security Bonus features
How Data is Stored
Using OMR Simplify data entry Becoming popular because OMR
scanning is Fast Accurate Cost effective Easy to implement
and support
How Data is Stored
• Using MICR (Magnetic Ink Character Recognition)• Used in bank cheques• Computerises the cheque clearing process
• Special symbols printed on cheque
How Data is Stored
• Using MICR • Computerises the cheque clearing process • MICR reader magnetizes and translates symbols
• Cheque information transmitted to Automated Clearing House (ACH)
• Cheques also read and sorted with a MICR reader/ sorter at the ACH
• Banks able to process cheques faster and cheaper
How Data is Stored
Disruptive Technology
Implementing new technology often leads to job losses initially
Workers’ jobs replaced by computers
New technology Makes life better Lower business costs
Businesses grow and new jobs created