Area of impact -banking and finance


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Area of impact -banking and finance

  1. 1. Banking and Finance<br />
  2. 2. EFT (Electronic Funds Transfer)<br />
  3. 3. Definition<br />Wikipedia: the computer-based systems used to perform financial transactions electronically.<br />Electronic Funds Transfer (EFT) is a system of transferring money from one bank account directly to another without any paper money changing hands.<br />
  4. 4. EFT is applicable to the following financial transactions<br />Payment made for certain goods and service via card (Debit or Credit).<br />Refund of previous payments by a shopkeeper.<br />Withdrawing money from an account via ATM.<br />Depositing money in an account via ATM.<br />Transferring funds between linked accounts.<br />Making payment to a third party.<br />Inquiring about various account details such as balance enquiry.<br />Taking out mini statement via ATM.<br />Request for PIN change at an ATM.<br />
  5. 5. Steps to perform EFT<br />To perform EFT first you must have an account with the bank.<br />Then go to the bank’s website to register for the service.<br />You will be asked to download and fill up a form and submit it to the nearest branch.<br />Once submitted the banks will create an online account for you and provide you with the ID and password.<br />You can then log into your account and perform necessary actions.<br />You can even change the ID and Password for security reasons.<br />
  6. 6. Related Banks<br />The following banks provide EFT services:<br />ICICI Bank<br />IDBI Bank<br />HDFC Bank<br />UTI Bank<br />State Bank of India<br />Bank of India<br />Punjab National Bank<br />Union Bank of India.<br />
  7. 7. Benefits<br />The users can avail following benefits via EFT:<br />Considerable reduction in transaction time.<br />Minimum or no paperwork involved.<br />Fast and easy to use.<br />Anytime anywhere banking.<br />No need to go to the bank and form queues.<br />
  8. 8. Disadvantages<br />Releasal of private information <br />No human interaction <br />Few EFT devices in certain areas of the world <br />EFTs such as an ATM are not fully secure and can be broken into<br />
  9. 9. Security<br />It is one of the highly secure method to perform financial transactions as the transactions can complete only by logging into the account via unique ID and Password. Special arrangements are made by the banks for this purpose such as a dedicated gateways created by them to provide secure environment.<br />
  10. 10. ATM (Automated Teller Machine)<br />
  11. 11. Definition<br />An electronic banking outlet, which allows customers to complete basic transactions without the aid of a branch representative or teller. <br />
  12. 12.
  13. 13. Hardware<br />An ATM is typically made up of the following devices:<br />CPU (to control the user interface and transaction devices)<br />Magnetic and/or Chip card reader (to identify the customer)<br />PIN Pad (similar in layout to a Touch tone or Calculator keypad), often manufactured as part of a secure enclosure.<br />Secure cryptoprocessor, generally within a secure enclosure.<br />Display (used by the customer for performing the transaction)<br />Function key buttons (usually close to the display) or a Touchscreen (used to select the various aspects of the transaction)<br />Record Printer (to provide the customer with a record of their transaction)<br />Vault (to store the parts of the machinery requiring restricted access)<br />Housing (for aesthetics and to attach signage to)<br />
  14. 14. ATM block diagram<br />
  15. 15. Software<br />Today the vast majority of ATMs worldwide use a Microsoft OS, primarily Windows XP Professional or Windows XP Embedded.<br />Linux is also finding some reception in the ATM marketplace.<br />Vista was not widely adopted in ATMs.<br />
  16. 16. Security--Physical<br />Early “ram-raiding”: stealing and using a truck loaded with a heavy construction machinery to effectively demolish or uproot an entire ATM and any housing to steal its cash.<br />Plofkraak: to seal all openings of the ATM with silicone and fill the vault with a combustible gas or to place an explosive inside, attached, or near the ATM. This gas or explosive is ignited and the vault is opened or distorted by the force of the resulting explosion and the criminals can break in.<br />
  17. 17. Security--Physical<br />Rob the staff filling the machine with money: To avoid this, the schedule for filling them is kept secret, varying and random. The money is often kept in cassettes, which will dye the money if incorrectly opened.<br />Modern ATM physical security, per other modern money-handling security, concentrates on denying the use of the money inside the machine to a thief, by means of techniques such as dye markers and smoke canisters.<br />
  18. 18. Security<br />Transactional secrecy: Sensitive data in ATM transactions are usually encrypted.<br />Customer security: security cameras and security guards; an emergency PIN system for ATMs, where the user is able to send a silent alarm in response to a threat; Most ATMs will also display on-screen safety warnings and may also be fitted with convex mirrors above the display allowing the user to see what is happening behind them.<br />
  19. 19. Internet Banking and Brokerage<br />
  20. 20. Definition<br />Online banking: the practice of making bank transactions or paying bills via the internet. <br />A brokerage: a firm that acts as an intermediary between a purchaser and a seller. More commonly, a brokerage is referred to as a brokerage firm. To broker a deal is to communicate with both the buyer and seller as to acceptable price on anything sold or purchased.<br />
  21. 21. Brokerage<br />A broker, a single person, or the brokerage firm completes any necessary legal paperwork, obtains the appropriate signatures, and collects money from the purchaser to give to the seller. Since the buyer and seller are employing the brokerage to complete the deal, the brokerage may collect a portion of the money obtained. In some cases, a brokerage receives money from both parties. In others, the brokerage receives a commission only from the seller.<br />
  22. 22. Electronic Cash<br />
  23. 23. Definition<br />Money or scrip which is exchanged only electronically.<br />Typically, this involves the use of computer networks, the internet and digital stored value systems.<br />Electronic Funds Transfer (EFT) and direct deposit are all examples of electronic money.<br />
  24. 24. Pitfalls<br />Electronic cash is not always protected in the case of theft or fraud like credit cards are.<br />In a recent case, a dealer who knew how to get around the system scammed several Yahoo! auction participants who used Pay Pal. They were originally told there was no way to recover their funds, but after much publicity, the money was refunded.<br />
  25. 25. System Providers<br />A short list of providers:<br />Pay Pal - A U.S.-based system that allows individuals in the United States to send money to each other via email.<br />First-E - A European, Internet-only bank.<br />Mondex - Electronic cash that is made available via "smart card."<br />eCash (formerly DigiCash) - One of the early developers of electronic payment systems.<br />
  26. 26. Alternative terms<br />e-currency<br />e-money<br />electronic money<br />electronic currency<br />digital money<br />digital cash<br />digital currency<br />
  27. 27. Insurance<br />
  28. 28. Definition<br />The equitable transfer of the risk of a loss, from one entity to another, in exchange for payment.<br />
  29. 29. Concept Related<br />Insurer: a company selling the insurance<br />Insured/policyholder: the person or entity buying the insurance policy.<br />The insurance rate: a factor used to determine the amount to be charged for a certain amount of insurance coverage, called the premium.<br />
  30. 30. Banking & Finance<br />