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Ict in Banking

Essay by   •  January 26, 2012  •  Essay  •  329 Words (2 Pages)  •  1,628 Views

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ICT IN BANKING

Computers are used in banks for a number of tasks including:

 -processing of cheques

 -preparing statements and reports

 -operating cash machines

 -handling deposits and withdrawal of money

 -keeping customer account details

What is an ATM and how does it work?

ATM stands for Automated Teller Machine. It can be used to withdraw or deposit money in a customers account amongst other functions. The ATM machine is linked to the bank main computer where it can access, query or update customer account. A bank customer needs a plastic card to use the ATM machine. The front and the back of the card appear as shown.

Front view Rear view

Magnetic stripe

The plastic card

These cards have common information encoded in them. Customer account information such as:

-account name

-account number

Personal Identification Number (PIN)

Questions

1. What is the use of PIN?

2. What would happen if someone else gets to know your PIN?

(Search for answers in the Internet and write them down)

Banks and ATM systems are usually networked. That is why a customer can use the ATM machine at any other branch.

A simple diagram to show how the wide area network looks like is shown below.

Examples of plastic Cards

-cash cards

-debit cards

-credit cards

Question

Briefly, write down the use of each of the above cards.

Cheque Reading: Magnetic Ink Character Reader (MICR)

A device known as MICR is connected to a bank computer. The MICR reads the characters at the bottom of the cheque and automatically transmits it into the computer. The characters are printed using ink that contains magnetic particles that can be detected

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