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Banking Channels

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Banking Channels

shape Introduction

Banking Channels are used for interactions of customers with banks. Banking channels can be used for either sales or service interactions. The interactions may be face-face and most of the times through online website or through a machine such as ATM.

Branch: The Bank Branch is the banking center of a financial institution where the customer can obtain sales and services in terms of finance.

  • The branch is a retail location which offers face-to-face and automated services to the customer.

  • Brick-and-mortar branches are the oldest type of branches. These branches offer full-service banking include safe deposit boxes.

  • In-store branches are located in a retail space such as a discount store. These branches can be full service or limited service branches and work with limited staff. These branches include technology like ATM, Video conference and Video banking systems.

  • Green Branch identified by the PNC Financial service Group. Including that develops construction and design. This can registered trademark to denote the friendly construction and design of banking location.

shape Concept

ATM stands for Automated Teller Machine. This is used to conduct transactions with the bank. It is also called an Automated Banking Machine.

  • The ATM is a telecommunication device which provides the environment to access the financial institution in a public space without the need of any bank staff.

  • The ATM is an Electronic machine which identifies the customer by inserting an ATM card with the magnetic stripe. The ATM was introduced by John Adrian Shepherd Barron (A Britisher) in 1967.

  • The ATM card contains a unique card number and some security information like validation date or CVVC. This card can be accessed by using a secret digital number which called as Personal Identification Number(PIN).

  • By using ATM’s The money will be converted into the exchange rate for foreign travelers.

  • This ATM can be called by various names like Automated Transaction Machine, Money machine, Bank machine, Cash machine, Automated Transaction Machine.

  • Europe and Russia countries called the ATM as a hole-in-wall and Bancomat respectively. In Portugal ATM after a registered trademark is called as a Multibanco.

  • In India, these are generally called as Any Time Machines and the ATM is called as A Cashpoint in Britain. In North America, banks have drive-thru lines to access to ATM’s.

  • The ATMs are connected internally to the bank networks permits the people to withdraw money from the machines and also for the customers who belongs to different banks.

  • By using ATMs, the people can withdraw the money from anywhere, anytime, in any bank they should have their account in the country.

  • In ATM’s authorization by the card issuer is performed through ISO 8583 messaging system.

  • The communication protocols are used to communicate bank to the bank include SNA over SDLC, TC500 over async, X.25 and TCP/IP over Ethernet.

  • The ATMs are used in all over the world but ATMs are not yet to reach high numbers in the Near East Africa.

  • The ATM consists of a magnetic chip card reader to identify the customer.

  • The PIN pad is used to provide security to the customer.

  • This card consists of a display, used by the customer for performing the transaction.

  • The function key button usually close to displaying and used to select various options of the transaction.

  • Record Printer is used to print the record of the customer’s transaction and also consists of Security sensors and Locks.

  • The ATMs are generally used to deposit currency recognition, acceptance, and recycling.

  • This is used to pay routine bills, fees, taxes, purchasing, Postage stamps, train tickets, Movie, and Shopping mall.

The mail is defined as anything sent via the postal system. This can be used to deposit cheques and to send orders to the bank to pay money to the others.

  • In banks, the mail can be used to deliver periodic account statement to customers.

  • The Mail can be used to send a letter to the corresponds.

  • The mail has found an evolution in vehicles using new technology to deliver the document through the telephone network.

  • These include a telegram, telex, facsimile, e-mail, and short message service. There have been methods to combine mail such as INTELPOST.

This is a financial institution service which allows the customers to perform transactions over the telephone.

  • The Telephone banking uses an automated phone answering system with phone keypad response or voice reorganization capability.

  • In this, the customer must authenticate through a numeric or verbal password or through a security question asked by the live representative.

  • The exception of cash withdrawal and deposits offers all the features of the automated teller machine.

  • The customer can speak to a live representative located in a call center or a branch.

This allows customers to manage financial transaction on a secure website operated by the retail or virtual bank, credit union or building society.

  • Online banking includes many features and capabilities to have the application specific.

  • The Online service started in New York in 1981, when four of the city’s major banks.

  • Today many banks are internet banks which do not maintain brick and mortar bank branches and offered better interest rates and online features.

  • The single password authentication provides protection for Online banking.

  • The PIN/TAN system, the PIN represents a password, used for the login and TAN represents the one-time password to authenticate the transaction.

This banking is also known as M-Banking, mbanking, SMS Banking etc.

  • This is used for performing balance checks, account transactions, payments etc. through the mobile device.

  • This banking system works via SMS or Mobile Internet that uses certain programs called client downloaded to the mobile device.

  • Mobile Banking consists of Mobile Accounting, Mobile Brokerage, and Mobile Financial Information Services.

  • The Mobile accounting and Brokerage are transaction Based services, and several services can be done by them.

  • Non-transaction based services can be done by using Information services.

  • The Mobile banking services provides Account Information, mini statements and checking of account history.

  • This allows to access monitoring of term deposits and Insurance policy management.

  • This can also provide a PIN provision and change of PIN number over the Internet.

SMS banking is new technology service, offered from banks to the customer to allow to operate selected banking services over the mobile phones using SMS messaging.

  • Push messages are that the bank sent the information to the mobile phone without the customer initiating a request.

  • Push message is a One-Time Password used by banking services.

  • Pull messages are initiated by the customer to obtain information or performing a transaction by using mobile phone.

  • The Push services includes the periodic account balance reporting for the end of month and reporting the salary and credits to the bank account.

  • This includes large value withdrawal on an account.

  • The Pull services include Account balance inquiry and mini statement request.

  • This is used for Electric bill payment and foreign currency interest rates inquiry.

This is used for performing banking transactions via a remote video connection. Video banking performed via banking transaction machines.

  • Video banking services depends on the type of video baking solution.

  • It can do the services like cash authentication, cash deposits, check deposits, cash withdrawal, check point and etc.

  • Video banking can provide banking services to bank customer for non-traditional banking hours banking branch.

The Credit card is a convenient substitute for the cash and Cheque and these are an essential component of Electronic Commerce and Internet Commerce.

  • The Credit Card can be issued by banks, stores and service providers like Airline.

  • The Credit cardholders must pay for credit card purchases within 30 days.

  • In India the top 5 credit cards issuer banks are ICICI, HDFC, SBI, Citi Bank, American Express.

  • The Credit cards offer the easiest ways to borrow money and it is beneficial for short-term borrowing.

  • If a person cannot afford to pay balances in full before the due date, he is shooting himself in the foot by borrowing on the card and these can charge the Interest.

  • The Card is introduced for purchases in 1887 used by Edward Bellamy.

  • If the card issued then the time in which cardholders have to pay the balance before interest is assessed on the outstanding balance.

  • Grace period may vary, but usually, range from 20 to 55 days depending on the type of credit card and the issuing bank.

  • If a cardholder is late paying the balance, finance charges will be calculated and the grace period does not apply.

  • The Business Credit Cards are specialized credit cards issued in the name of a registered business and can be used only for business purpose

  • A credit card allows small short-term loans to be quickly made to the cardholder and small short-term loans are made to the cardholder and he need not calculate a balance remaining before every transaction.

  • The RuPay Card is an Indian version of credit/debit card and it is a combination of two words – Rupee and Payment and it is similar to the international card such as Visa/Master.

  • Debit Card is also known as a Check Card.

  • Some debit cards accepted only within a particular country or region.

  • PIN number stands for Personal Identification Number.

  • The EFTPOS is an online Debit or PIN debit an linked with Australia and New Zealand, Offline Debit is “UnionPay” debit card is concerned with China.

  • The Debit card has some restriction on withdrawal per day and it does not allow the unlimited withdrawal. The Prepaid Debit cards are also called as Reloadable Debit Cards.

  • The Primary market for prepaid cards are unbanked people and this prepaid banks are called as Bank Gift Card.

  • The Rupay debit card is similar to Singapore’s NETS and China’s UnionPay.

  • The Rupay debit card can provide a unified “Kisan Card” issued by banks across the country under Kisan Credit Card, enabling farmers to transact business on ATMs and POS terminals.

  • International transactions lead to higher transactions costs. Such costs can be reduced by using RuPay card since processing will be done within the country. Also, transactions will be faster.

  • Users will get alerts for every transaction made through RuPay Card and It can process the fee for RuPay card compared with regular debit/credit cards will be considerably lower.

  • Some cards all over the world like The Maestro and Solo Card which used in the United Kingdom and the Interac is used in Canada.

  • The EC electronic cash is used in Germany and the Carte Bleue is used in France.

shape Quiz

1. Inventor of ATM was ____.

    A. Ian Luther Steward
    B. David Block
    C. John Adrian Shepherd Barron (A Britisher)
    D. John Luther

Answer: Option C

2. The ATM was the world’s first automatic cash dispenser at a ______ near London.

    A. London Bank Branch
    B. Barclays Bank Branch
    C. Royal Grand Federal Bank Branch
    D. Royal Braclays branch

Answer: Option B

3. ATM machine was invented in the year _____.

    A. 1966
    B. 1968
    C. 1969
    D. 1967

Answer: Option D

4. The Machine was called as ____.

    A. De La Rue Automatic Cash System
    B. DACS
    C. Both of 1 and 2
    D. None of These

Answer: Option C

5. _____ was the first bank to Introduce the ATM concept in India.

    A. HSBC
    B. SBI
    C. Standard Chartered Bank
    D. HDFC

Answer: Option A