Information technology does not always mean fewer costs for banks to operate; it has become a necessity in the competitive market of this era. Mobile and wireless technology enables banks to satisfy clients who demand real-time information, and mobile payment accessibility, for example, buying top-up cards for your mobile. One of the largest networks, commonly used nowadays by banks, is the internet. This directly provides a connection within different branches of banks, and inter-relates the customer at home with the bank.
E banking that is banking through internet is becoming popular, and upholds the reputation that one cannot access accounts any faster than through e-banking. Customers must logon to the website of banks using their identity, and security key to perform their activities using E banking from their homes, offices, or anywhere they want. This makes banking service easier as most people now perform their tasks remotely, thus less number of customers physically visit the banks, making it dependent upon the internet.
If a customer, while accessing banking services via internet, loses the internet connection during a transaction, he may not be able to determine whether the transaction went through or not. Internet banking is not as secure as telephone banking, because in telephone banking no one will know the actual digits being keyed in, while in internet banking, there is a fear of intruders.
The interbank data transmission of financial transactions is done through a special type of software called Electronic Data Interchange (EDI). It is an automated electronic mail, which transmits the information at a specified time in day. EDI is business-to-business transacting software, and is not a generalised one to be used by customers.
The major advantages of such an electronic payment system are its speed and reliability, which increase accuracy, and eliminate delays, but still financial documents, and payments cannot be covered. Such payments are done through another form of technique, widely used by banks, known as the automated clearing system. This allows banks to batch process cheques in real-time.
For using clearinghouse facility, banks or other financial institutions should have a computer having backup system connected to the clearinghouse automated system also called CHAPS. It reduced the chances of default risk by banks; as if a transaction is through CHAPS, then it cannot be undone.
A database of customer transactions is maintained in banks, which is a collection of data in form of tables having data like the clients name, address, transacting amount, total amount in the account, etc. The inbuilt risk of a bank is when a customer has taken credit, and in unable to repay it.
Banks should therefore, constantly keep their databases updated on their potential borrowers, so that they can easily manage their risks. Bank Databases are normally connected through a network configuration, which allows the connectivity of various databases in different branches and hence, permits the sharing of resources, and information. Such a relational database enables the bank teller to access the database of a particular client at any regional branch, indifferently from where the transaction took place. - 31377
E banking that is banking through internet is becoming popular, and upholds the reputation that one cannot access accounts any faster than through e-banking. Customers must logon to the website of banks using their identity, and security key to perform their activities using E banking from their homes, offices, or anywhere they want. This makes banking service easier as most people now perform their tasks remotely, thus less number of customers physically visit the banks, making it dependent upon the internet.
If a customer, while accessing banking services via internet, loses the internet connection during a transaction, he may not be able to determine whether the transaction went through or not. Internet banking is not as secure as telephone banking, because in telephone banking no one will know the actual digits being keyed in, while in internet banking, there is a fear of intruders.
The interbank data transmission of financial transactions is done through a special type of software called Electronic Data Interchange (EDI). It is an automated electronic mail, which transmits the information at a specified time in day. EDI is business-to-business transacting software, and is not a generalised one to be used by customers.
The major advantages of such an electronic payment system are its speed and reliability, which increase accuracy, and eliminate delays, but still financial documents, and payments cannot be covered. Such payments are done through another form of technique, widely used by banks, known as the automated clearing system. This allows banks to batch process cheques in real-time.
For using clearinghouse facility, banks or other financial institutions should have a computer having backup system connected to the clearinghouse automated system also called CHAPS. It reduced the chances of default risk by banks; as if a transaction is through CHAPS, then it cannot be undone.
A database of customer transactions is maintained in banks, which is a collection of data in form of tables having data like the clients name, address, transacting amount, total amount in the account, etc. The inbuilt risk of a bank is when a customer has taken credit, and in unable to repay it.
Banks should therefore, constantly keep their databases updated on their potential borrowers, so that they can easily manage their risks. Bank Databases are normally connected through a network configuration, which allows the connectivity of various databases in different branches and hence, permits the sharing of resources, and information. Such a relational database enables the bank teller to access the database of a particular client at any regional branch, indifferently from where the transaction took place. - 31377
About the Author:
Edwood Woodward is a financial consultant. You may consult with him to take debt help and get more optionss to make financial decisions of your life at http://www.moneysolve.co.uk.
