Information Technology And Banking

Ever wondered how complicated is the process of banking

? Imagine: What if you had to take a cheque from someone, verify the persons credentials, send it to the bank, search for the account number, calculate the balancing amount, send the message to the clearance office, clear the amount, deduct the amount from the opposite partys account and then finally transfer the amount? How cumbersome can this process be? Nut with the introduction of computer in to the banking industry, all tasks have been made as easy as possible. In the upcoming paragraphs you may reread how the banking process has been broken down into simpler processes by using information technology and computer.

The computers make the process of cheque clearing very easy and less time consuming. The cheques are printed in a special type of ink called the magnetic ink. The ink produces magnetic characters embossed on the cheque. When someone writes a cheque, the check is verified against the magnetic characters and the respective amount is deposited and withdrawn from different accounts. All this is done automatically using very little manual labor.

Another improvement in the banking industry by the computer is BACS. BACS stands for Bankers Automated Clearing Services. This is a technology so far developed and used only in the United Kingdom and some adjoining areas. It is a total computer database which has the records of all the employees regarding in the countries. Moreover, it stores the data of unemployed people, pensioners, mortgages, etc. While keeping a record of all this, it is responsible to deposit the money into all of the accounts respectively through the bank. The information is interchanged between the two financial institutions using magnetic tapes. The success of this system can be measured by the fact that most of the population of UK depend on BACS for their payments.

Another milestone achieved by the computer in the category of banking is the development of ATM (Automated Teller Machines). ATM has opened a new era of opportunities for everyone. This is because of its accessibility and compatibility. It offers a wide range of options. For example, you have an account in a bank which is located on the other end of city. Suppose you immediately require money and you are unable to reach the specific bank. In that case, if there is an ATM of that bank in the nearby branch, you can do a lot of things. For example, you can withdraw money, check the balance in your account, change youre PIN and much more. It may save your time and energy.

Besides all this, there are a lot of benefits to the bank and the customers who use the ATMs. As per the bank, fewer staff will be required for routine transactions and the staff can concentrate more on revenue-generating tactics and areas. For customers, this is a plus point that ATMs are a 24-hour service and transactions are not just limited to office timings. Conclusively, ATM promotes efficient transactions and makes fraud impossible.

Company: Toronto pcs

Address:222 Spadina Avenue, Unit # 116 A

Toronto, ON - M5T3B3

Zip code: M5T3B3

Contact person: micdaved

Phone: 647-693-5036

Email: fed.pats@gmail.com

Formoreinformation:http://www.torontopcs.com/

by: Fedrick Patrick

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