Chapter 6 Tele Banking

8/4/2019 Chapter 6 Tele Banking

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Ch:6 Tele-banking/e-

Banking

Tele banking, e-Banking, Mobile Banking, CorporateBanking, Personal Banking and Internet Banking


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TELE-BANKING

The function of tele-banking servicesis based on the voice processingfacility available with the bank

computers.

The caller, generally a customer ofthe bank, will be able to call the bank

any time and enquire balances ortransaction history and to transferfunds between accounts.

In this system , the banks computer


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Tele-banking

The voice processing facility,provided in the software, identifiesthe caller, by keyword and provides

him services, with suitable reply.

Some banks use a telephoneanswering machine, in which case

the service is not tele banking per-sebut simply a telephone answeringsystem


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Tele-banking.

Apart from tele-banking, anothersystem, simple and for limitedservice is also available, known as

voice mail facility.

There are several foreign banks nowoffering , very advanced touch-tone

telephone answering services, whichroute the customers call, directly tothe department concerned of the

bank.


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Tele-banking

Touch-tone telephone answeringservices, also allows the customer toleave a message for the concerned

desk or the department, if thecustomer is not available.

In this system, each service

representative has his or her voicemail post bag in which the messagesare stored and retrieved upon his

return, to his desk.


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Tele-banking.

With the help of the telephoneanswering system, the enquiries aremost common in computerized

railway reservation system.

Tele-banking facility is available witthe help of a voice response system

(VRS) Basically the system accepts only

tone dialed inputs (i.e, from callers

phone instruments by dialing up


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VRS-additional facilities..

1. On line feature of changing existingcustomer password with the new onedesired.

2. Password for necessary security andprotection.

3. Information about sanctioned limitand drawing limit of an advance/loanamount.

4. Speaking out past five transactionsmade in the account


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VRS additional facilities

5. Requisition of cheque books andstatements of account can be placedon phone.

6. The tele-marketing features-information about the latest rate ofinterest, information about various

schemes in the bank for deposits orloans and advances.

7. Tele-banking enables marketing of

banking products


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VRS-additional facilities

9. General information about the bankproducts, nearest ATM location, etcmay be available.

10. Accessibility is 24x7, anytime,anywhere.

11. Transactions are restricted to fundtransfers on telephonic information.

12. Cost effective and time saving to

the customer as well as the bank.


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MOBILE BANKING

This is process of enabling financialtransactions through operatingmobile by the customer.

This is one of the recentdevelopments in banking technologyand this area of technology may

escalate to a further height, as themobile technology is progressing todifferent heights.


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MOBILE BANKING

As and when debits or creditseffected to a customers account, onaccount of legitimate banking

transactions, such information's areconveyed to the mobile number ofthe account holder.

The account holder is provided withtimely information as to credit ordebit, to his account, facilitating

smooth conduct of account and


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MOBILE BANKING..

Banks have fixed financial limits, likefor example, RS:2000 and above, forthe purpose of conveying,

instantaneous information as to debitor credit, in the account.

This ensures better security to the

customer. All other service envisaged under

electronic banking may be made

available under mobile banking


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CORPORATE BANKING

Ideal for corporates and companies

The facilities rendered are allowing

access to a designated computerterminal to ascertain the position ofthe account:-

a)Previous days closing balanceb) days credit to the account

c) days debit to the account

d)Clear balance in the account


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Corporate bankingbranches..

Specialized branches of the bank,exclusively for the needs ofcorporate customers are established

in sensitive locations. These branches are fully automated

with modern IT infrastructure

These branches are provided withproject consultancy link

These branches are also providedwith ualified ersonnel in the art of


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Corporate bankingbranch..

Conspicuous feature of the corporatebanking branch is that a smallnumber corporate customers deal

Non corporate customers may haveto deal with regular branches, in viewof certain banking prescription in

corporate banking branch Some of the asset/liability products

may not be available here

One sto sho service is enabled to


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Corporate bankingbranch..

If the corporate loan portfolio is largeenough, this type of branch mayhave a project consultancy division,

attached to it. Besides expert manpower,

sophisticated software is used in

project formulation, appraisal andproject finance.

Besides existing projects, corporates

establish new projects,


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Corporate banking branch

The volume of business in corporatebanking branch is very, although fewcorporate customers deal

Automation of corporate bankingbranch with sophisticatedinfrastructure is necessary for vital

functions and transparency. Corporate banking branch helps in

the profitability and regulating the

CD ratio of the banks.


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Corporate cashmanagement

If the corporate entity is having unitsspread across the country, theaggregation of cash balance at each

center, can be ascertained at adesignated time of the day.

Such a facility would enable the

corporate entity to understand itsintra day liquidity and effectivemanagement of scarce resources.

Also, the corporate entity need not


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Conversely, the corporate entity, byeffective cash management/liquiditymanagement, may off-load certain of

its debt obligation, either on time ormake pre-payment depending itsliquidity position.

Such a situation imparts furtherprofitability in the form of reducedinterest and other costs.

Debt/equity can be managed better


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Corporate cash management hasconferred many advantages to thecustomer base, whereas the benefits

accruing to the bank are in terms ofavailability of huge float funds, lessercost in rendering service, less

dependence on manpower, speedydelivery of service, resulting in highcustomer satisfaction and patronage.

Better profit/productivity-economy of


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Corporate cashmanagement.

Corporate entity can ensure smoothtransfer of funds, intra bank or interbank, incurring very little cost and

small time Corporate entity can structure an

international remittance and transmit

the same to the banks, to facilitateimmediate remittance

Establishing letter of credit, a bank

guarantee, domestic or foreign, is


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Corporate cashmanagement.

The issues relating to exports orimports also can be dealt with theassistance of a P C at the corporate

office and this P C need not bededicated for the purpose.

Up gradation in the technology

infrastructure at the bank branchesand the corporate entity, confersdistinct advantages, in terms of

faster product delivery, better


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Personal banking

Banks have retail banking modulesfor individuals

Through various devices theseproducts are delivered in view of upgradation in the technology.

Technology devices also displayproduct features and in view of stiffcompetition between the banks, theover all response to customers

enquiry is immediate.


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Personal banking..

Centralized data warehousingenables the bank to reach, anyinformation of a customer quickly

Customer has many options like tele-banking, mobile banking, netbanking to transact with the bank

Of late banks have started,counseling centers on asset andliability products to promote personal

banking.


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Personal banking

Retail customers constitute a largechunk of clientele base of banks

The more the number of customers,the dispersal of credit risk is moreand the credit default risk may bemanaged better.

More number retail customersenhance the brand equity of thebank and in the automated regime,

volume of work has no impact on the


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Internet banking

American scientists in charge ofdefense research, created a networkof linked computers, spread over

wide geographical area, and thismission was then called associatedresearch project agency-ARPA.

Defense personnel from differentlocations, collected intelligence fromthese network of linked computers,

sharing one anothers computer


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Internet banking

Transmission control protocol/internetprotocol-TCP/IP used in ARPA-net.

This device is popularly known asinternet, now.

REQUIREMENTS OFINTERNET

A computer, a phone line and theknowledge of transmission controlprotocol/internet protocol(TCP/IP), thecollection of linked com uters form


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Internet society

Internet society, a non profit andnon governmental organization,brings users of internet community

together. Internet Engineering Task Force

(IETF) is the main standards

organization for internet. IETF has large international

community of network designers,

operators, vendors and researchers


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Internet society.

Internet technical standards are setby IAB- Internet Architecture Board,an important arm of IETF-Internet

Engineering Task Force. Internet banking sites can be

segregated in to three levels-viz:

1.First level or website level

2. Second level or value addedservices level


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Internet banking-1.websitelevel

In the first level of implementation ofinternet banking, the website level,the customers are able to visit the

website of the bank and collect,information on various products andservices available.

This level is therefore an informationlevel.

The products and services of each

bank may vary. The customers

n erne an ng va ue


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n erne an ng-va ueadded service level-2nd

level Under this customer can opt foravailable products

Customer also can downloadprescribed forms and also fill in theforms for onward transmission to thebank

Again normal personal interactionwith the bank staff is not required, asfar as procuring the stationery,

besides all preparatory work relating

n erne an ng


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n erne an ng-transactional website- 3rd

level Fund based transaction is possibleand request for registering change inaddress, e-mail ID, phone number

facilitated. Financial and non financial

transactions possible.

Structured messages like the one tofacilitate SWIFT format, bankguarantee, letter of credit can be

initiated. Here customer will provide


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Transactional website-3rdlevel..

The customers are guided about theprocedure of accessing the banksnetwork and in terms of security,

certain precautions are taken. The consent of the customers for

internet banking is obtained, with an

explicit undertaking with reference tosystemic risk or situations beyondthe control of banks.

Transactions are password protected


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Features of internetbanking..

It is a medium of delivery of bankingservices and a strategic tool forbusiness development

Internet banking is largely used as amarketing/advertising tool and forthe reciprocal benefits of the

customer and the bank. It is used for general information on

deposit products and application

form downloading.


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Features of internetbanking

Internet banking can be used forfilling in applications/documentationand transmission

Even a loan proposal can besubmitted or processed anddocumentation process also can be

continued in the internet banking. It handles receipts, review and

payment of bills on line.

A t b d t t i

Chapter 6 Tele Banking

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Transcript of Chapter 6 Tele Banking