Cashless Society E-Learning 1 (31 st Jan – 1 st Feb 2008)

1. Cashless Society E-Learning 1 (31st Jan – 1st Feb 2008)

2. Instructions • Read through the presentation slides on “Cashless Society” • You are then supposed to do Activity 1, 2, 3 and Review Exercise CEL 4 • Submission Deadline 4th February 2008 (Monday) • Late submission will be dealt with severely.

3. Give examples of how computers are used in the bank, such as for cash dispensing, cheque processing, management of customers’ accounts and online banking • Mention how data is captured through the use of OMR, MICR, magnetic strips and barcodes • State that a personal identification number (PIN) is commonly used as a security measure when using a smart card • Understand that the trend is towards cashless electronic transactions Objectives

4. Introduction • Computers are used in many places • Popular because • Cost reduction • Communication • Growth of Information and Communication Technology (ICT) industry

5. Computers in Banks • Commonly seen computers in banks

6. Computers in Banks • Back-office operations • Confidential activities • Cheque processing • Management of customers’ accounts • Online banking

7. Computers in Banks

8. Computers in Banks • Benefits to customers • Convenience • ATMs found in many places • Accessibility • Computers can work long hours • Security • All transactions are recorded • Predictability • Computers are predictable

9. Why Electronic Banking is Popular? • Benefits to banks • Low cost • Banks do not need to open many branches and employ many people to serve a majority of customers • Security • Security features are built into ATMS e.g. camera • Accounting • Computers makes capturing transaction records easier

10. How Data is Stored • On identity cards • Magnetic strips • Manufacturing cards with magnetic strips is cheap • Magnetic strips reader are affordable

11. How Data is Stored • Smart chips • Computer chips that store information • Identification information

12. How Data is Stored • Smart chips • Safer than magnetic strips • Credit card companies turning to smart cards because • Credit card fraud • Difficulty in counterfeiting smart cards • Extra security • Bonus features

13. How Data is Stored • Using OMR (Optical Mark Recognition)

14. How Data is Stored • Using OMR • Simplify data entry • Becoming popular because OMR scanning is • Fast • Accurate • Cost effective • Easy to implement and support

15. How Data is Stored • Using MICR (Magnetic Ink Character Recognition) • Used in bank cheques • Computerises the cheque clearing process • Special symbols printed on cheque

16. How Data is Stored • Using MICR • Computerises the cheque clearing process • MICR reader magnetizes and translates symbols • Cheque information transmitted to Automated Clearing House (ACH) • Cheques also read and sorted with a MICR reader/ sorter at the ACH • Banks able to process cheques faster and cheaper

17. How Data is Stored • Using Barcodes • Used to store information • Cheap to make • Easy to read

18. Cashless Electronic Transactions • Increasingly popular • E-commerce • Internet banking

19. Disruptive Technology • Implementing new technology often leads to job losses initially • Workers’ jobs replaced by computers • New technology • Makes life better • Lower business costs • Businesses grow and new jobs created

20. The End

21. You are reminded once again to do Activity 1, 2, 3 and Review Exercise CEL 4 • Submission Deadline 4th February 2008 (Monday) • Late submission will be dealt with severely.