Current Development in Bank Industry

CURRENT DEVELOPMENT

(Saleh M. Nsouli and Andrea Schaechter, September 2002)

Electronic Banking or Internet Banking allows the user of personal computer and browser to connect their bank’s website to perform any of the virtual banking functions. On the Internet, all the services that the bank’s permitted has displayed in menu. An alternative of delivering channels with ATM network is now giving place by the traditional branch model of bank. Once the branch offices of banks and the satellite links are interconnected, there will not have any physical identity for any branch.

The popular services covered under E-Banking including:

* Automated Teller Machines,

* Credit Cards,

* Debit Cards,

* Smart Cards,

* Direct Deposit,

* Cheque Truncation Payment System,

* Mobile Banking,

* Internet Banking,

* Telephone Banking, etc.

Automated Teller Machines (ATMs)

Account balances inquiries, cash withdrawals, statement of accounts requests and cash and cheque deposits are the common functions of ATM machines. All the important functions of a bank can be say is performed by the ATM. It was operated by a plastic card with its special features. There are many things that can be replaced by the plastic card. For example, customer’s personal attendance, cheque, banking hour’s restriction, validation of the paper and many more. There is also having debit cards. Spring board for Electronic Fund Transfer is use by ATMs. Customers account’s information and customer’s instructions can be provided and received by ATM itself.

ATM is an Electronic Fund Transfer Terminal which is capable in handling cash deposits, transferring money between accounts, recording the cash balance, cash withdrawals and paying bills. Customers can generally insert an ATM card and enter their PIN number to allow them to withdraw cash, make deposits or transfer funds between accounts

INTERNET BANKING

Internet banking allows customers to get their current...