m For many consumers, electronic banking means

24-hour access to cash through an automated

teller machine (ATM)
m But electronic banking now involves many
different types of transactions.
m Electronic banking, also known as electronic fund
transfer (EFT), uses computer and electronic
technology
m jn 70¶s, banks started to establish centralized data
processing centers.
m Essentially the roles of these data processing centers
are:
a collect the handwritten documents from branches
a compile the documents
a manual data entry by the operators
a generate reports for the bank staff and the central
bank
a execute some banking transactions
m jn 80¶s, banks started technology investments for the
branches.
m The first step is offline branches.
m Terminals connected to local branch computer
m Second step is online branches connected centrally.
Most of the transactions started to be performed in the
central mainframe.
m jn the mid-1980s, banks accepted product based banking and
competed with their products.
m Banks developed new products for their customers.
a Ôredit card
a Ôredit deposit account (Super Account)
a Debit cards
m Beside branch, banks brought new channels to give better service
to their customers.
a ATM
a POS
a j

m The plastic card usage grown enormously in last 2
decade.
m Plastic card became the main media for bank customers.
m Number of credit card in Turkey:

Ô
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data collected from BKM
m About the size of a credit card, a smart card is a plastic card with an embedded
microchip that can be loaded with data, used for telephone calling, electronic
cash payments, and other applications, and then periodically "recharged" for
additional use.
m smart card contains more information than a magnetic stripe card and it can be
programmed for different applications. Some cards can contain programming
and data to support multiple applications and some can be updated to add new
applications after they are issued
m Benefit of smart cards:
a enhanced security
a off line transaction
a programmable card
x loyalty
x customer information
m jn the mid-1980s, that cash dispensers truly became
a worldwide phenomenon.
m jt took 16 years for the first 100,000 cash dispensers
to be installed, but only four years more for the next
100,000.
m Now,ATM became the electronic face of banking for
most customers.
m Beside cash withdrawal, there exist various
transaction options from transfer to fund
buying/selling.
m New habits in shopping
m jncreased the use of plastic cards
m Debit card and credit card mainly.
 Debit Ôard
Authorization

Switch
System

Ôredit Ôard
Authorization
m jnteractive oice
esponse (j
) is a software
application that accepts a combination of voice
telephone input and touch-tone keypad selection and
provides appropriate responses in the form of voice
m j
has come into our life at the beginnings of 90¶s.
m First step in Telephone Banking
m Electronic repositories of summarized historical data
m The main idea behind data warehouse is get all
company data working together so users can see
more,learn more, and make the organization work better
m Data Warehouse helps users to identify trends, find
answers to business questions and derive meaning from
historical and operational data.
m Data access is easier and less costly
m Decision support solutions run faster and are more
accurate.
m Ô
M is an integrated sales, marketing and service
strategy
m Ô
M goals are :
a -se existing relationships to grow revenue
a -se integrated information for excellent service
a jntroduce more repeatable sales processes and
procedures
a Ôreate new value and loyalty
a jmplement a more proactive solution strategy
 O



 


jnnovation
Ôonvenience
   O 
 

educe Ôost  istening
 
 
New products

 Ôustomer
service

 
m Banking from home

m You can make transfers and other changes while the bank is closed

m Most banks (if not all) work through an encrypted channel with your
information

m You can download a file that holds your account information to easily
reconcile your statement with your financial management software
(Quickbooks, MS Money, KMyMoney, Gnu Ôash, etc.)

m jt is easy to view recent transactions and monitor your account

m jf the bank's server is down, you can't use it
m There's always the possibility of a cracker gaining access
to your account
m Many banks don't show you how to use online banking very
well, and those are usually the ones with the non-intuitive
interface and cluttered design, which makes it pretty easy
for you to screw up something
m Ôompelled to have Ôomputers with jnternet Access
m Phone bills can increase
m Hackers may intercept data and defraud customers
2