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1. THE UGANDA INSTITUTE
OF BANKING &
FINANCIAL SERVICES
UIBFS
ISO 9001:2008 CERTIFIED
Banker - Customer Relationships
Outline of Bank Services
Types of Accounts
Know Your Customer (KYC)
Savings and Fixed Deposit Accounts
Cheques, Money Transmission, and Other Payment Mechanisms
MODULE COVERAGE
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Code of Banking Practice
Plastic Cards and Electronic Banking

2. THE UGANDA INSTITUTE
OF BANKING &
FINANCIAL SERVICES
UIBFS
ISO 9001:2008 CERTIFIED
What are plastic cards in banking?
• Plastic cards, commonly known as ATM cards in Uganda, are electronic
cards issued by banks to enable bank clients have 24 hour access to their
accounts. These cards have the ability to store account information and to
facilitate automatic transactions between the client and the bank without
the presence of any bank staff.
• Two types of common electronic plastic cards are the debit and credit
cards.
Debit cards – This is an electronic card issued by a bank which allows
bank clients access to their accounts 24 hours a day. The main feature of a
debit card is that you will have access only to your credit balance and no
more.
• The major benefits to this type of card are convenience and security.
Along with the convenience of accessing account funds at anytime, it also
removes the hassles associated with going to the bank, writing cheques
etc
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3. THE UGANDA INSTITUTE
OF BANKING &
FINANCIAL SERVICES
UIBFS
ISO 9001:2008 CERTIFIED
Credit Cards - Allow the customer to draw money in excess of his credit
balance on his account up to agreed limits. The credit limit, in most cases,
is a revolving limit and the customer may use the available credit as long
as the minimum payment due is paid each month by the due date.
There are four major players in the international field of Plastic card business.
These are:
• Visa International
• MasterCard international
• Diners club
• American Express
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4. THE UGANDA INSTITUTE
OF BANKING &
FINANCIAL SERVICES
UIBFS
ISO 9001:2008 CERTIFIED
What is electronic banking?
Electronic banking is a form of banking where funds are transferred through
an exchange of electronic signals between financial institutions, rather
than an exchange of cash, cheques, or other negotiable instruments. The
ownership and transfers of funds between financial institutions are
recorded on computer systems connected by telephone lines or other
electronic communication media.
Customers using electronic banking services can among other services use it
to:
• Withdraw Money
• Check account balance
• Deposit money
• Exchange money
• Pay bills and Loans
• Generate bank statement
• Transfer money
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5. THE UGANDA INSTITUTE
OF BANKING &
FINANCIAL SERVICES
UIBFS
ISO 9001:2008 CERTIFIED
Advantages and disadvantages of plastic cards and e-banking
Advantages
• Convenience of withdrawing from anywhere in the world -There are over a million
VISA ATMs worldwide
• The convenience of shopping and paying for services anywhere in the world using
the cards.
• Convenience of not having to carry hard cash – affording the customers peace of
mind
• Convenience of cash access 24 hrs a day- Most ATMs operate 24 hours in all major
towns all over the country. Online banking sites never close; they're available all-
day, seven days a week.
• Convenience of simplified money management- You can keep track of how much
you spend and on what. You can access detailed monthly statements that show all
your cash transactions including withdrawals.
• Worldwide, regardless of location - If you're out of your country when a money
problem arises, you can log on instantly to your online bank and take care of
business at any time
• Transaction speed - Online bank sites generally execute and confirm transactions
at or quicker than ATM processing speeds.
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6. THE UGANDA INSTITUTE
OF BANKING &
FINANCIAL SERVICES
UIBFS
ISO 9001:2008 CERTIFIED
• Efficiency - You can access and manage all of your bank accounts, including
securities, from one secure site.
• Effectiveness - Many online banking sites now offer sophisticated tools,
including account aggregation, stock quotes, rate alerts and portfolio
managing programs to help you manage all of your assets more effectively.
Most are also compatible with money managing programs such as
Quicken and Microsoft Money.
Disadvantages
• Start-up may take time and formalities: In order to register for your bank's
online program, you will probably have to provide ID and sign a form at a
bank branch. If you and your spouse wish to view and manage your assets
together online, one of you may have to sign a durable power of attorney
before the bank will display all of your holdings together.
• Learning curve: Banking sites can be difficult to navigate at first. Plan to
invest some time and/or read the tutorials in order to become
comfortable in your virtual lobby. For busy executives who do not have
spare time, this can be a challenge
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7. THE UGANDA INSTITUTE
OF BANKING &
FINANCIAL SERVICES
UIBFS
ISO 9001:2008 CERTIFIED
Disadvantages…
• Difficulties posed by bank site changes: Even the largest banks periodically
upgrade their online programs, adding new features in unfamiliar places.
In some cases, you may have to re-enter account information.
• Proneness to internet and other electronic fraud – this is perhaps the
greatest threat to electronic banking. There are increasing numbers of
international internet criminals who target theft of bank customers’
electronic identity to defraud them
• Internet breakdowns and system malfunctions, causing inconveniences to
electronic banking customers
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