Latest Technology in Banks

1. Banking Technology

2. Banking is the business conducted or services
offered by bank.
It is a financial institution that accepts from the
public and creates credit.
Banking is different from money lending.
Banking has two important functions to perform
- accepting deposits and lending money
Mobile Banking
Telephone Banking/Tele Banking
Internet Banking
Universal Banking
Home/Office Banking
Electronic Banking
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3. Mobile banking refers to the banking
activities that are carried in mobile phone
through a cellular phone service-provider.
This facility is called as “Anywhere and
Any moment Banking”.
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4. Features of Mobile Banking
Account Information
Transaction
Investments
Support
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5. Telephone banking service makes use of an
automated/answerback-voice response
system.
Where banking and financial services are
delivered to the customer of a bank
through the media of telephone.
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8. Internet banking enables a customer to
perform banking transactions through the
bank’s website.
This is also called virtual banking, net
banking or anywhere banking.
It is like bringing the bank to one’s computer
at the place and time of one’s choice.
It is very useful, especially for banking
outside bank hours through internet access.
Online banking usually offers features like
electronic bill payment.
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9. Features of Internet Banking
 Electronic bill presentation and payment.
Online bill payment for shopping, travel
and donation transactions.
Funds transfers 24x7x365 facility.
Money transfer to India for NRI customers.
All routine transactions regarding banking,
cards, loans and investment services.
Conduct banking services anywhere.
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11. Universal banks are banks that are engaged
in diverse kinds of banking business which
are generally handled by different types of
banking entities.
Banking that includes investment services in
addition to services related to savings and
loan is universal banking.
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13. Customers can be connected directly to their
bank’s computers, using a terminal in their
house or office.
This gives them access to detailed and up-to-
date information about their accounts and
they can initiate payments electronically
from their terminals.
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14. Banking transactions done through
electronic means is e-banking.
Today’s banking is virtual banking.
Virtual banking denotes the provision of
banking and other related services through
the extensive use of IT, without any direct
physical link between the bank and the
customer resource to the bank by
customers.
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16. AUTOMATED/ADVANCED LEDGER
POSTING MACHINES (ALPMs)
Transactions like credit, withdrawal,
transfer, etc., are entered into machine, the
accounts are updated.
ALPMs can work on a large volume of
work.
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17. AUTOMATED TELLER MACHINES
(ATMs)
ATM is a device used by bank customers to
process account transactions.
The customer inserts into the ATM, a plastic
card that is encoded with information on a
magnetic strip.
The strip contains an identification code that
is transmitted to the bank’s central
computer by modem.
Every card holder would be given a PIN
(Personal Identification Number)
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19. White Label ATMs
RBI in 2011 declared to allow all non-
banking entities to set up and operate their
own automated teller machines (ATMs)
known as White Label ATM’s .
Customers of any bank can use such white-
label ATMs, but they will have to pay a fee
for using the service.
All transactions through these ATMs will be
charged.
White-label ATMs accepts only cards issued
by banks and does not accept cash deposits.
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20. Facilities of White Label ATMs
Any customer from belonging to any bank, can
use it. Every month, Five transactions are free.
White label ATM users can also withdraw a
maximum of 10,000 per transaction.
Open 24/7 and on holidays
Value added services like mobile recharge, utility
bill payments etc.
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21. Type of ATM What they stand for
On Site ATM ATMs Inside the Bank
Off site ATM ATM outside the bank premises but is
located at other places, such as
shopping centres, airports, railways
station and petrol stations.
White Label ATM ATM Provided by NBFC
(Non Banking Financial Company)
Green Label ATM ATM Provided for Agricultural
Transaction

22. Orange Label ATM ATM Provided for Share
Transactions
Yellow Label ATM ATM provided for E-commerce
Pink Label ATM ATM for women banking
Brown Label ATM ATMs are those Automated Teller
Machines where hardware and the
lease of the ATM machine is
owned by a service provider but
cash management and
connectivity to banking networks
is provided by a sponsor bank .

24. Cash Deposit Machine is better known as
CDM.
It is an ATM like machine that allows you to
deposit cash directly into your account
using the ATM cum debit card.
This machine instantly credit the account
without visiting the branch.
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