Académique Documents
Professionnel Documents
Culture Documents
The
use
ofcomputersto
carry
outbankingtransactionssuch
as
withdrawals
throughcashdispensers
ortransferoffundsatpoint of sale
For many people, electronic banking means 24hour access to cash through an automated teller
machine (ATM) or Direct Deposit of paychecks into
checking or savings accounts. But electronic
banking
involves many
different
types
of
transactions,
rights,
responsibilities
and
sometimes, fees.
Electronic banking, also known as electronic
funds transfer (EFT), is simply the use of
electronic means to transfer funds directly from
one account to another, rather than by cheque or
cash.
Objectives of E-Banking
From bankers point of view
Detailed service at
reduced cost
Reduction of
Administrative
expenses
Reduction of
volume of paper
work
Increasing income
Strengthening the
position in
competitive
environment
HISTORY AND
DEVELOPMENT OF EBANKING
Structure Of EB
In
front
Servic
es
Count
Back
er of
Offic
EB
e
EB
Primitive stage
Disbursement
Intermediate stageCash
strategy
Telephone bills, POS,
Modern stage
Cheque verification etc
Home banking, EFT,
Internet banking, AOFT,
EDD etc.
Primitive stage
Intermediate
stage
Modern stage
Basic component of E
Banking
1
2
3
4
Type of E-Banking
POS
Retail
Debit
ATM
Credit
Cheque
ACH
Card
EB
Truncation
Service
HomeCard
Banking
Cash
Wire
ACH
Transfer
Management
Wholesale
EB
Objectives:
Increase profit
Reduce internal
operational expenses
Creating market in
domestic and foreign
countries
Highly efficient
services
Ensuring the
computational
Securities of
ATM
Fraudulent
Authorization
Violation of data
link
Dishonest
Personnel
Physical
Components of ATM
1. Speaker
2. Display
Screen
3. Receipt
Printer
4. Cash
Dispenser
Debit Card
Credit card
Point of sales
The place where sales are made. On a macro
level, a point of sale may be a mall, market or
city. On a micro-level, retailers consider a point
of sale to be the area surrounding the counter
where customers pay.
Also known as "point of purchase".
Check truncation.
To process payments faster and more efficiently,
many banks no longer transport paper checks, but
replace them with digital images -called substitute
checks -- that can be transferred electronically, in
a system called check truncation.
Cheque truncation is the conversion of a
physicalchequeinto asubstitute electronic
formfor transmission to the paying bank. Cheque
truncation eliminates cumbersome physical
presentation of the cheque and saves time and
processing costs.
Home Banking
Wholesale Electronic
Banking
Cash Management
Cheque
Collection
1.Mail float
2.Processing float
3.Collection float
Disbursement
Controlled Disbursement
A technique commonly employed in corporate cash
management. Controlled disbursement is used to
regulate the flow of checks through the banking
system on a daily basis, usually by mandating oncedaily distributions of checks (usually early in the day.)
This is done in order to meet certain investment or
fund management objectives.
Important Internal Controls for Cash
Disbursements
Segregate duties.
Review authorized signors
Consider requiring dual signatures
Remember the wire transfers
Reconcile bank accounts in a timely manner
Wire Transfer
An electronic transfer of funds across a network
administered by hundreds of banks around the world.
Wire transfers allow for individualized transfer of funds
from single individuals or entities to other individuals or
entities, while still maintaining efficiencies of fast and
secure movement of funds.
Fed wire
Areal-time gross settlement system that enables
participants to initiate funds transfer that are
immediate, final, and irrevocable once processed.
How it
works?
Bank Wire
An electronic message system allowing major banks to
communicate various actions or occurrences regarding
client accounts. The wire represents a secure
computerized messaging system that sends account
information, notifications and transaction requests
between banks.
Handling Risk In EB
Human resources
Policy and Procedures
External threats, security and
technology
Regulatory and Legal compliance
Uses and Transaction