INSTITUTE OF FINANCE BANKING & INSURANCE (IFBI)

By:- Harmandeep Singh To:-Mr.G.S.Chawla

Abhishek Bajaj
Pallavi
CONTENT

 ATM
 Mobile Banking

 Internet Banking

 Phone Banking

 Branch Banking
 ATM
 ATM is stands for Automated Teller Machine.
 John Shephered-Barron was a British inventor which installed first cash machine i.e.
ATM .
 ATM is the back bone of retail banking.
 ATM plays a vital role in facilitating the banking services to banks as well as
customers.
 Flexibility of using ATM of other banks i.e. we can make transaction from any ATM
while our account not in same bank.
 ATM is the greater invention for banks ,because ATM machine works 24x7 in a day.
 It helps to serve good service to the customers.
 ATM CONT…
The core features of the ATM is:
 Cash withdrawal
 Cash or cheque deposit
 Ultra-fast cash
 Funds transfer
 Balance enquiry
 Mini statement
 Pin change
 Cheque book request.
 ATM CONT…
Types of ATM:
 Onsite
 Offsite
 Worksite
 Drive-in
 Mobile ATM
 Cash dispenser
 ATM CONT…
Advantages of ATM:
 It is easy to use
 Withdrawing money easily
 Consume less time
 Provide 24x7 and 365 days a year
 Allow privacy in transaction
 Provided error free service
 Offer quicker and efficient service
Disadvantages of ATM:
 If problem in debit or credit card you cannot withdraw cash
 If someone watches you while using ATM your detail may be taken if forget your pin
number you cannot use the card
 Cash deposit facility is not safe in atm because sometimes machine don't accept old
currency.
ATM CONT…
 MOBILE BANKING
 Mobile banking is a technology which helps to operate our account through the help
of a mobile.
 It is east and efficient for a customer to transfer funds from his account to other, pay
utility bills, and many more such services through mobile banking.

Need of mobile banking:

 With the growing needs and expectations of the customers, the banks started
providing services which could ease the operational process for the customer as well
as for the banking service provided by the bank.
 MOBILE BANKING CONT…
From customer point:
 Increasing number of online customers
 Specific need of transferring funds at odd hours
 Multiple transactions
 Facilitate the customer to use his account wherever and whenever required as per his
convenience.
 MOBILE BANKING CONT…
Mobile Banking services:
 Account information
 Mini-statements
 Check account history
 Access to loan and card statement
 Monitoring of term deposit
 Ordering check book
 Balance check
 Blocking your card
 Change card pin
 Status on cheque, stop payment on a claque
 Other policies and term deposit's all are manage on mobile banking.
 MOBILE BANKING CONT…
Ways of mobile banking install:
 First you can only use smart phone
 Install your bank application in your mobile phone
 In a application, create your account with your mobile number
 Then bank send one OTP number in your registered mobile number
 Enter that OTP in application and set PIN code, which is always remember
 Then the application starts check your detail and enjoy.
INTERNET BANKING
 INTERNET BANKING
Methods of banking in which transactions are
conducted electronically via internet is called internet
banking.
o A bank account in which internet banking facility is activated
o Internet connection for accessing the bank’s website
o User ID & password to log on to the internet banking account
o Transaction password & ATM or debit card to transfer funds
 INTERNET BANKING CONT…

Services available through internet banking to the

customers:
 View account balances & download statements.
 Transfer funds between accounts (within same bank as well as to other banks)
 Request for a Demand Draft.
 Pay utility bills or life insurance permiums.
 Order a cheque book.
 Request stop payment of a cheque.
 Request for a debit Card.
 Refill a prepaid mobile card.
 Track dividends, interest received into their account of their investment including bonus
shares.
 Request for renewal & premature closure of Fixed deposits & Recurring deposits.
 INTERNET BANKING CONT….

Merits of internet banking :

 It is real time & gives details on customer’s accounts.
 It can be accessed anytime & from anywhere.
 It doesn’t involve customers to stand in queues.
 It is a secured service.
 We can operate accounts & complete banking transactions from the comfort of
homes.
 INTERNET BANKING CONT…

Demerits of internet banking:

 You can’t have access to online banking if you don’t have an internet connection.
 Security of Transactions is a big issue.
 Your account information might get hacked by unauthorized people over the internet.
 Knowledge issue.
 To use internet banking smart phones are mandatory which all the people can’t
afford.
 If the bank’s server is down, then you can’t access your accounts.
 You might become annoyed by the constant emails & updates.
 Your banking information may be spread out on several devices, making it more risk.
 Password security is must, after receiving your password change it and memorize it.
Otherwise, your account may be misused.
 INTERNET BANKING CONT…

Safety measures for internet banking for customers:

 Avoid sharing their user ID & password with anyone.
 Avoid using passwords based on their name, spouse’s name & birth date because
these are easy to crack or guess.
 Combine alphanumeric passwords with special characters.
 Change your passwords regularly.
 Avoid allowing anyone to access their accounts through Net banking.
 Report any suspected misappropriation from their accounts to the bank immediately.
 INTERNET BANKING CONT….

The banks should take the following safety measures:

 Generate & dispatch user ID’s & passwords separately.
 Prohibit the employees of the bank to ask the customers for the user ID & password.
 Maintain high level of security standards for websites.
 One Time Password has been introduced as an additional security feature by banks to
protect the accounts from online fraud.
 Only on punching the OTP, the transactions will be allowed through the Net banking.
 OTP is a 6 digit code sent to the resident customers on mobile & to NRI customers
on their email ID registered with the bank.
TELEBANKING
 TELEBANKING
 Telephone banking is a service provided by a bank or other financial
institution, that enables customers to perform over the telephone a
range of financial transactions which do not involve cash or
Financial instruments (such as cheques), without the need to visit a
bank branch or ATM.
 TELEBANKING CONT…
Services provided during telebanking:
 Account balance inquiry
 Account history information
 Transfer fund
 Make payments to loans/lines of credit
 Stop payments
 Bankcard activation
 Santander PIN (Personal Identification Number) changes
 Check reorders
 Branch hours and locations
 Interest earned/paid prior year
 Credit Cards
 TELEBANKING CONT…
Transactions done through telephone banking:
 Call 877-768-2265
 Select your language preference,
 Option 1 for personal accounts,
 Option 1 from the main menu for the Automated Telephone Banking
System.
 Enter your User Identification Number and a Personal Identification
Number (PIN)
 Follow the subsequent voice prompts
 TELEBANKING CONT…
Advantages of telephone banking:
 It is convenient because you can pay your bills on time and do not have to
go to the utility company during the business hours.
 It saves time as it eliminates waiting in line at the utility company.
 It is safer because you do not have to walk around with cash to pay your
utility bills.
 TELEBANKING CONT…
Disadvantages of telephone banking:
 The system can be difficult to use i.e. working through all those
menus
 2.Security- Mobile users are susceptible to a phishing like scam
called smiting. This occurs when the mobile user gets a fake text
message asking for account details.
BRANCH BANKING
Branch Bank is
a type of
banking system
under which the
banking
operations are
carried with the
help of branch
network and the
branches are
controlled by
the Head Office
of the bank
through their
zone or regional
office
 BRANCH BANKING CONT…
Features of branch banking:
 Economies of Large Scale operations: Branch banking enjoys the advantages and
economies of large scale operations. Under branch banking system economies can
maintained through large scale of operations and wider geographical coverage increase
public confidence in the banking system.
 2. Economy of Cash Reserves: Under branch banking system a particular branch can
operate without keeping large amounts of reserves. In time of need, resources can be
transferred from one branch to another. It is not easy for a .unit bank to draw on another
unit bank.
 3. Proper use of capital: There is a proper use of capital under the branch banking system.
Since the resources are transferred from one branch to another. So the capital can be
properly used by investing in the profitable branches.
 3. Economy of Costs: Branch banking has the advantage of effecting remittances of funds
from one place to another with greater ease and at a lesser cost than unit banking, for
inter-office indebtedness can be far more easily adjusted.
 4. Risks-spreading Economy: The spreading of risks geographically is another major
advantage of the branch banking system. In branch banking, losses incurred one branch
can be offset by profits earned by the profit making branches which is not possible in case
of unit banking.
 5. Easy and cheaper transfer of funds: Since the branches of bank under branch banking
are spread all over the country, it is easier and cheaper, for it to transfer funds from one
place to another.
 6. Greater Safety and Liquidity: Branch banking also offers a wider scope for the selection
of diverse securities and varied investments, so that a higher degree of safety and liquidity
can be maintained.
 BRANCH BANKING CONT…

Disadvantages of branch banking:

 Danger of Mismanagement: Under the branch banking system a number of

difficulties as regards management, supervision and control, a number of
branches undue expansions lead the danger of mismanagement.
 Delays in Decision-making: The system of branch banking also suffers from
red tape and delay on account of the inadequate authority of branch managers.
Usually, application for big credits has to be referred to the head office by the
branch manager. This causes delay and gives little initiative to branch
managers.
 Lack of Personal Contact: A large bank tends to become more and more
impersonal in its dealings. The general managers have hardly any personal
contact with the local people or the staff of different branches.
 High operating and maintenance expenses: Branch banking is very expensive,
because with the opening of too many branches, establishment and
maintenance charges of the branches are bound to be high and, as a result,
profits may shrink.
 Concentration of Monopoly Power in the hands of few banker: Branch banking
sometimes creates monopoly power in the hands of few large bankers. Such a
monopoly power in the hands of a few big bankers is a source of danger to the
community whose goal is a socialistic pattern of society.