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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.

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

Benefits of E-Banking to customers

• No need to wait in queues

• Bank statements can be viewed or

printed12

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

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

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

Quick Test

3. You need a User ID and a

password to perform online

banking transactions.

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TRUE FALSE

Quick Test

4. When you go to the bank you

must bring your ID card.

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TRUE FALSE

Quick Test

5. Internet facility is not required

to do online banking.

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TRUE FALSE

Internet facility is necessary

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

screen24

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

Quick Test

1. Money can be withdrawn from

ATMs everyday including public

holidays.

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TRUE FALSE

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

Quick Test

3. You can top up your mobile

phone at an ATM.

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TRUE FALSE

Quick Test

4. You may deposit coins on your

account at an ATM.

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TRUE FALSE

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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