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.
Banking on internet embeds it on the mind of customers that their information is only a few clicks away. On the website of the bank, one only has to login after registration to access their account information. This has changed the banking service as now customers do not have to physically visit banks instead they can do everything online, thus making banking IT and internet based.
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 electronic transmission of financial transactions from one bank to another is known as electronic data interchange (EDI). This involves an instantaneous diffusion of monetary transactions in a virtual manner to the other party in the form of electronic mail. Whilst both banks and households can use internet banking, EDI is used for the sole purpose of banking transactions.
EDIs are automated systems, which are more reliable, accurate, and reduce delay, but still there are some financial transactions, which have to go special automated systems called clearinghouses. Clearing houses batch process cheques deposited in a bank in real time.
Financial institutions, using this system, must have a fault-tolerant computer connected to the actual clearinghouse automated payment system (CHAPS). One argument in favour of this payment technique is that once payments are made, they cannot be rolled back, and therefore, it reduces default risk incurred by banks.
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.
In order to manage their risk, banks must update their database against borrowers, and potential ones too. Banks have central databases allowing sharing, or information, and resources between all branches, this enables customer to access ATM indifferently wherever they are. - 29970
Banking on internet embeds it on the mind of customers that their information is only a few clicks away. On the website of the bank, one only has to login after registration to access their account information. This has changed the banking service as now customers do not have to physically visit banks instead they can do everything online, thus making banking IT and internet based.
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 electronic transmission of financial transactions from one bank to another is known as electronic data interchange (EDI). This involves an instantaneous diffusion of monetary transactions in a virtual manner to the other party in the form of electronic mail. Whilst both banks and households can use internet banking, EDI is used for the sole purpose of banking transactions.
EDIs are automated systems, which are more reliable, accurate, and reduce delay, but still there are some financial transactions, which have to go special automated systems called clearinghouses. Clearing houses batch process cheques deposited in a bank in real time.
Financial institutions, using this system, must have a fault-tolerant computer connected to the actual clearinghouse automated payment system (CHAPS). One argument in favour of this payment technique is that once payments are made, they cannot be rolled back, and therefore, it reduces default risk incurred by banks.
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.
In order to manage their risk, banks must update their database against borrowers, and potential ones too. Banks have central databases allowing sharing, or information, and resources between all branches, this enables customer to access ATM indifferently wherever they are. - 29970
About the Author:
Edwood Woodward is a financial expert. You may consult with him to take debt help and get more alternatives to make financial decisions of your life at http://www.moneysolve.co.uk.
