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Traditional vs Electronic Banking
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Why do people go to the bank?
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• To open or close a bank account.
• To deposit or withdraw money.
• To check their account balance.
• To exchange foreign currency.
• To transfer money from one account to
another.
• To apply for a loan.
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Traditional Banking
An individual needs to:
• go to the bank with his Identification
Card
• stand in a queue and
• wait for his turn to be helped by a
bank clerk to do a transaction
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E- Banking
• Also known as Online Banking or
Internet Banking
• Allows banking transactions to be
done
▪ from home
▪ or other locations
▪ with computer and Internet facilities
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How does E- Banking work?
• The bank provides a website where
customers can access their
account.
• Each customer must have:
▪ a unique User ID / User Name provided
by the bank and
▪ a password (secret code).
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What can be done through E- Banking ?
Using E-Banking we can:
• Check account balance
• Transfer money from one account to
another
• Pay bills
• View or print bank statements
• Create new accounts
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Tools required for Online Banking
1. A Personal Computer / Laptop / Tablet
PC or Smartphone
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Tools required for Online Banking
2. A connection to The Internet
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Tools required for Online Banking
3. A Registration with the bank, so as to
obtain login details:
•User Name
•Password
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Benefits of E-Banking to customers
• Transactions can be done from any
location
• Transactions can be done at any time of
the day (24/7)11
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Benefits of E-Banking to customers
• No need to wait in queues
• Bank statements can be viewed or
printed12
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Benefits of E-Banking to banks
• A wider customer base
▪ Customers can be from any
region as they don’t have to be
physically present.
• The bank can operate 24 hours a
day13
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Benefits of E-Banking to banks
•Less staff is required
•Large savings on office
rental and utility bills
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Drawbacks of E-Banking to customers
• They need to have a computer and
Internet facilities to access the
bank’s website
• There is the risk of hacking and
financial fraud
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Drawbacks of E-Banking to banks
• Banks need to buy expensive
computers and pay IT experts to
develop and monitor the website
• In case of network problems,
transactions cannot be done
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Quick Test
1. In traditional banking you have
to travel to the bank.
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TRUE FALSE
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Quick Test
2. E- banking can be done
between 9 AM and 4 PM only.
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TRUE FALSE
Banking can be done
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Quick Test
3. You need a User ID and a
password to perform online
banking transactions.
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TRUE FALSE
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Quick Test
4. When you go to the bank you
must bring your ID card.
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TRUE FALSE
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Quick Test
5. Internet facility is not required
to do online banking.
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TRUE FALSE
Internet facility is necessary
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ATM - Automated Teller Machine
• Electronic banking outlet
• Allows customers to make
basic banking transactions
• Have access to money 24/7
ATMs can be found outside
banks and in shopping centres
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What is needed to use an ATM ?
To use an ATM, a person must have:
• a valid bank card
• a PIN which is a secret code
▪ PIN stands for Personal Identification
Number
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How to use an ATM ?
To use an ATM:
• Insert bank card
in the required slot
• Type PIN
(Personal Identification Number)
using keypad
• Select transactions by pressing the screen
buttons and follow the instructions given on the
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Services offered by ATMs
• Cash withdrawal (banknotes only)
• Cash deposit (banknotes only) and
Cheque deposit
• Checking account balance
• Viewing/printing a mini statement
• Paying bills
• Topping up mobile phones25
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Quick Test
1. Money can be withdrawn from
ATMs everyday including public
holidays.
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TRUE FALSE
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Quick Test
2. Only a bank card is required to
access a bank account from an
ATM.
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TRUE FALSE
Both a bank card and a
PIN is required to access
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Quick Test
3. You can top up your mobile
phone at an ATM.
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TRUE FALSE
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Quick Test
4. You may deposit coins on your
account at an ATM.
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TRUE FALSE
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Traditional Banking
• You must call in person at the bank
during office hours with your ID
card
• Wait for your turn to be helped by a
bank clerk
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E - Banking
• Transactions are done from
home or other locations
• Computer and Internet facilities
are needed
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ATM – Automated Teller Machine
A machine placed outside a bank
that provides basic services such as:
▪Cash withdrawal or deposit
▪Print or display account summary
▪Recharge mobile phone credit
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