Computer innovation is one of the major scientific developments of
20th century and very will running with more prospects and developments into
the 20th century. In fact, a computer application has made its entry in all the
areas of and fields of human development. Human development impact is
correlated with our legation and in turn religion is directly applied to the
applications of scientific developments. Through computer was innovated during
the late 1950’s the major impact of which has felt in real life during 1980’s.
Now the computer applications have made our life more easy, economical and even prosperous. Computer technology now rules the fields of communications, transport, banking, space science, defense etc. Commercial Banking is the main back bone of the running economy which in turn deals with day to day financial transactions. Earlier bank transactions were managed through white and black transaction modes, involving lots and lots of registers, ledgers, account books, pass books, record sheets etc. All the daily transactions are managed then and there recording manually in the appropriate registers. This mode of manual recording of registers also led to occasional mistakes in the rallying of account transactions.
During the 1990’s the Indian banking system was switched over to computer banking in phases. Computer banking in fact was not brought at once in India because of the vase updating and recording data of the vast updating of various individual governmental and company financial transactions. Computer banking, in fact, has been made very effective and applied in all the areas of banking only form 2006 on wards. Computer mode electronic transaction so on date is prevalent in all the nationalized banks and private banks. In fact, electronic transactions are made for each and every transaction and perhaps ledger entries are made but for few unavoidable cases.
Computer banking starts from the very basic. When a customer steps into the bank all entries are made with electronic recording. The debits as digital mode
Now the computer applications have made our life more easy, economical and even prosperous. Computer technology now rules the fields of communications, transport, banking, space science, defense etc. Commercial Banking is the main back bone of the running economy which in turn deals with day to day financial transactions. Earlier bank transactions were managed through white and black transaction modes, involving lots and lots of registers, ledgers, account books, pass books, record sheets etc. All the daily transactions are managed then and there recording manually in the appropriate registers. This mode of manual recording of registers also led to occasional mistakes in the rallying of account transactions.
During the 1990’s the Indian banking system was switched over to computer banking in phases. Computer banking in fact was not brought at once in India because of the vase updating and recording data of the vast updating of various individual governmental and company financial transactions. Computer banking, in fact, has been made very effective and applied in all the areas of banking only form 2006 on wards. Computer mode electronic transaction so on date is prevalent in all the nationalized banks and private banks. In fact, electronic transactions are made for each and every transaction and perhaps ledger entries are made but for few unavoidable cases.
Computer banking starts from the very basic. When a customer steps into the bank all entries are made with electronic recording. The debits as digital mode
each and every customers name address, nominee details etc are
recorded in the computer and in fact the photos and signature of the individual
are also being maintained under the scan system for easy verifications and the
identifications of the individuals. The drafts electronic money transfer
advises to other banks are all managed through the electronic teller machine
(ATM) is of great advantage to the customers. This ATM has made customers wait
drastically reduced waiting in long ques. The advantage of ATM debit cards,
credit cards facilities have also made customers life easier. By resorting to
electronic banking credit cards reduce carrying money and cut the burglary
risk.
Again the formation of core banking system through electronic means has resulted in very swift money transactions with in minutes to any branch, anywhere in India. Hence banking through electronic computer applications can be better said as the main estimation for the prosperity of banking customers. Computers in the banking sector have enhanced customer service and productivity regarding account management, while streamlining back-office activities. The biggest impact is in the area of competition. Small banking institutions can access the same technology as large banking institutions and, therefore, can compete with them more effectively for business.
Again the formation of core banking system through electronic means has resulted in very swift money transactions with in minutes to any branch, anywhere in India. Hence banking through electronic computer applications can be better said as the main estimation for the prosperity of banking customers. Computers in the banking sector have enhanced customer service and productivity regarding account management, while streamlining back-office activities. The biggest impact is in the area of competition. Small banking institutions can access the same technology as large banking institutions and, therefore, can compete with them more effectively for business.
Banking
o
Computers
are instrumental to the way the banking industry performs its business. This
technology allows banks to be able to take transactions and update accounts in
real time.
An
advantage to the bank customers is an increase in convenience. By linking
computers and automated telling machines (ATMs), people are able to access
their money at any hour of the day.
Online
banking is another effect of computer technology on the banking industry. With
online banking, customers are able to pay bills electronically and manage
accounts and transfer money from the comfort of their own homes. Additionally,
computers allow people to set up automatic payments from their bank accounts to
such places as utility companies and insurance groups.
Electronic
Transactions
o
Banking
systems must perform electronic transactions. Direct deposit is an example of
an electronic transaction. Computers processing electronic transactions must
have hardware and software encryption capabilities to keep data from being
compromised during a transmission. After the computer performs electronic
transmissions, it transfers the information to the main computer system for
processing and updating. Banks have extended electronic transaction
capabilities through landline and cell phones, the Internet and ATMs.
Efficiency
o
The
use of computers in the banking and insurance industries has made their
respective processes efficient. Both the banking and insurance industries rely
on calculations to perform their respective operations. Computers decrease the
amount of time needed to perform complex calculations and allow professionals
in these industries to calculate many formulas at the same time. Computers also
increase the efficiency of these industries by reducing the potential of humans
to err and make incorrect calculations.
Account
Management
o
In
banking, activities start with banks automating customer accounts, which allow
personnel to create, update and maintain customer records. Banking hardware and
software have enhanced the accuracy of accounts that tellers and other banking
personnel process. Banking software performs customer transactions through a
centralized data record system. Account management is the genesis and backbone
of all banking information systems.
Hardware
Technology
o
In
the 1960s, bank hardware consisted of a mainframe and a punch card machine.
Punch cards contained customer account information and were read into the main
system by a punch card machine. Mid range and client/server hardware
configurations, which are no larger than a mini tower system, can run an entire
bank in addition to receiving transactions from affiliated bank branches. These
new hardware technologies can process more transactions than legacy banking
hardware systems. Hardware technologies have enabled advances into wireless
banking and telecommunications banking.
Web-based
Banking
o
Web-based
banking systems use a dedicated server through a bank network system. An area
of the banking system is partitioned for Internet applications. Web-based
banking systems by law must include secure servers and authenticated
certificates regarding transactions from the Federal Deposit Insurance Company
and the Federal Reserve Board. Customers who choose to bank online can access
their account through a web interface, which integrates with the main computer.
A customer's credentials -- user ID and password -- pass through several
checkpoints before entering the main system to perform a web-based transaction.
Technology plays
a tremendous role in the modern banking and insurance industries. The use of
computers, specifically, has allowed changes with regard to how data is
retained and transactions conducted. Computers also link up branches from
anywhere in the world. Communication and information transfer happens in a
matter of moments. These functions make computers an extremely valuable tool in
the banking and insurance indusies.
Data
Retention
o
Both
the banking and insurance industries rely on the retention of vast amounts of
information. Computer technology makes this information more easily accessible
and also requires less amount of physical space. Records can be backed up
easily with computer storage. With the valuable information retained within the
banking industry, security is a concern. As such, banks use the most modern
programs to deter hackers from stealing sensitive data.
Customer
Information
o
Banks
use computers to track customer information such as name, address, and phone
number, date of birth, Social Security number and place of employment. This
information is used to stay in touch with customers and notify them of any
changes in bank policy. A customer address is needed to send out statements on
a monthly basis. A customer's account number is also stored in the computer,
which gives bank employees the ability to access customer information
efficiently.
Products
The number of
products and services a customer has is also stored in computers. Bank
personnel will periodically call customers at home to offer them a product or
service, such as a home equity line of credit. It helps to know which products
a customer already has before any new products are offered. Without the use of
computers, it would be difficult to keep track of this information
Reports and Profits
o
With
a computer, banks can analyze aging reports and track the customers who have
had checks returned due to nonsufficient funds. This report can be used by the
sales associates to call these customers and offer them a product called
overdraft protection, which prevents a customer from over drafting their
account. Computers help bank personnel generate income by targeting certain
customers for sales activity.
Transactions and Goals
o
Computers
help tellers keep a record of all transactions for the day. When customers make
deposits and withdrawals, cash checks, open checking accounts or apply for
mortgage loans, a computer will store and track all of the information once a
teller or bank employee keys it into the system. After tabulating all of the
information, a branch manager can print the report at the end of the day to see
if the branch hits its goals and objectives. Branches have goals for lending
and new accounts.
Credit
Applications
o
A
bank can use computers for new loan applications and credit card applications
and opening new accounts such as checking, savings or certificate of deposit
accounts.
Delinquency
o
Computers
can be used to track customers who are delinquent on their loan and credit card
payments. Computers can generate separate reports for customers who are 30-,
60- and 90-days delinquent on their accounts. When a 30-day delinquency report
is generated, a collection representative can contact the customer for
resolution, which helps keep delinquency under control.
Miscellaneous
o
Computers
can keep a record of all communications that a bank employee may have with a
bank customer including collection activity. A bank can also use a computer to
see which safety deposit boxes are available and they can keep a record of
customers who have safety deposit boxes.