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Financial Services & Electronic Banking

Financial Services & Electronic Banking. Ch. 17-2 PoB 2011. Types of Financial Services. Savings – accepting money from customers for safekeeping Payment – ability to transfer money to others Examples : checking accounts, debit cards, online payments and automatic withdrawals

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Financial Services & Electronic Banking

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  1. Financial Services & Electronic Banking

    Ch. 17-2 PoB 2011
  2. Types of Financial Services Savings – accepting money from customers for safekeeping Payment – ability to transfer money to others Examples: checking accounts, debit cards, online payments and automatic withdrawals Lending – the borrowing of money at some time with the requirement of paying interest until borrowed amount is paid in full Examples: auto loans, business loans, mortgages, and credit cards Electronic Banking Electronic Funds Transfer (EFT) – refers to the use of computers and other technology for banking services Examples: ATM, POS, direct deposit, and automated bill pay
  3. Types of Financial Services Storage of Valuables Safe-Deposit Boxes – are stored in secure areas that are very safe places to keep jewelry, rare coins, etc. Bank cannot open your box, nor anyone else Must have a key Investment Advice Bank assistance for making financial decisions Management of Trusts Trust – banks managing investments on behalf of the customers Used by people of all ages
  4. Biometric Banking Biometry – is the analysis of biological observations, and its use un identification is not new Fingerprint Verification Iris Scanning Voice Recognition Hand Geometry Face Recognition
  5. Types of Checking Accounts Regular Checking Accounts If you write a lot of check each month, consider a regular checking account Service Charge – is a fee a bank charges for handling a check account A checking account at a credit union may be called a share draft account because the members are called shareholders Interest-Earning Checking accounts that earn interest; may require higher monthly balances Interest rates vary
  6. Types of Checking Accounts Special Checking Special Checking Account (activity account) – if you only write a few checks each month Banks charge a small fee per check and monthly service fee
  7. Comparing Checking Accounts Evaluate the following items: Minimum balance Interest rate earned, if any Monthly service charge Fees for other services, such as printing checks and stop payment orders
  8. E-Banking Services Automatic Tell Machines ATM (cash machine) – allows many banking services 24/7 Debit Card (cash card) – used for ATM transactions Payments at the Point-of-Sale POS Transaction – a merchant accepts a debit card to pay for purchases Direct Deposit Direct Deposit – funds are deposited electronically and available automatically for your use Automatic Bill Payments Automatic Bill Payments – requires a bank customer to authorize preset amounts of monthly expenses
  9. Examples of Electronic Banking Activities
  10. Electronic Payment Options Debit Card Transactions Online Payments Stored-Value Cards Smart Cards - electronic wallets
  11. Review What are the main types of financial services used by consumers? What are the three main types of checking accounts? What are common electronic banking services?
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