ICT has allowed many different ways for people to to bank and supervise their finances. It has also affected the way people shop either instore or from the comfort of your own home either through internet shopping or by using your debit or credit card to make virtual transactions from your bank account without the use of physical money.
ATM machines
An ATM machine also known as a Cash Machine , is a computerised device that provides people with access to financial transactions in a public space without the need for a cashier, human clerk or bank teller. On most modern ATMs, the customer is identified by inserting a plastic cashpoint card with a magnetic stripe , that contains a unique card number and some security information such as an expiration date. Authentication is provided by the customer entering a PIN.
Using an ATM, customers can access their bank accounts in order to make cash withdrawals, credit card cash advances, and check their account balances as well as purchase prepaid cellphone credit. This is hepful when you are in need If the currency being withdrawn from the ATM is different from that which the bank account is denominated in (e.g. Withdrawing Japanese Yen from a bank account containing UK Sterling), the money will be converted at a wholesale exchange rate. This is very useful when a client is in a rush in a foreign country.
Internet Banking
Internet Banking keeps you in touch with your account whenever you like. It’s fast, convenient and easy to use the following services every day. You are able to search through your statements eithe by date, how much is in your account or the payment type. You can view all of your transactions and download statements into a spreadsheet or a financial software package. By using online banking you are able to check your up to the minute balance online and keep on top of the money going in and out of your accounts. Also with internet banking you are able to move money between the various accounts which you may have within a bank. This also allows you to recieve bills online which you can be alerted by emails when new bills arrive and you can make bill payments whenever you want. Furthermore, you can now choose not to recieve paper bills which is a lot easier for the person managing their accounts. This is also better for the enviroment as less paper will be used. Finally, you can manage all of your accounts with the bank and view your other accounts which include most credit cards, savings and loan balances. 1. An internet banking account is simple to open and use.
You just enter a few answers to questions in a form while sitting comfortably in your own home or office. To access your account, you establish security measures such as usernames and passwords. To complete the set up of your account, you just print, sign and send in a form.
2. Internet banking costs less.
Because there are fewer buildings to maintain, and less involvement by salaried employees, there is a much lower overhead with online banks. These savings allow them to offer higher interest rates on savings accounts and lower lending rates and service charges.
Even traditional brick and mortar banks offer better deals such as free bill paying services to encourage their customers to do their banking online.
3. Comparing internet banks to get the best deal is easy.
In a short time, you can visit several online banks to compare what they offer re savings and checking account deals as well as their interest rates.
Other things you can easily research are what credit cards are available, credit card interest rates, loan terms and the banks own rating with the FDIC.
4. Bouncing a check (accidentally) should be a thing of the past because you can monitor your account online any time, day or night.
You can track your balance daily, see what checks have cleared and when and know when automatic deposits and payments are made. This is all possible by simply going online to the banks website and logging into your account.
5. You can keep your account balanced using your computer and your monthly statement.
Your bank account information can be downloaded into software programs such as Microsoft Money or Quicken, making is easy to reconcile your account with just a few mouse clicks. The convenience of the data capture online makes it much easier to budget and track where your money goes. Your internet bank account even allows you to view copies of the checks you have written each month.
6. With the ability to view your account at anytime, it is easier to catch fraudulent activity in your account before much damage is done.
As soon as you log into your account, you will quickly see whether there is anything amiss when you check on your deposits and debits. If anyone writes a check or withdraws funds from your account and you know it wasn't you, you will see it right away. This lets you get started on correcting the problem immediately rather than having to wait a month to even have a clue it is happening as would be the case with a traditional bank.
7. Internet banking offers a great deal more convenience than you could get from a conventional bank.
You aren't bound by 'banker's hours' and you don't have to go there physically in your car. Time is not wasted when you have work to do because you can do your office's banking without leaving the office. No matter where you are or what time it is, you can easily manage your money.
There are sound reasons why internet banking is growing. The economic advantages have encouraged banks to provide an increasing range of easy to use services via the internet.
Disadvantages of online banking
1. Impersonal. Doing transactions on the internet can be very impersonal. In other words, you only do business with the use of a computer. No individual to receive and check your money or correct some wrong information that you might have written on a certain form. And so for people comfortable dealing with real people who provide personalized services and using paper and money, internet banking is not ideal.
2. Security fraud. Many people shy away from internet banking because of the security threat. They can't help but worry about this aspect what with news on fraudulent bank transactions that pop up every now and then. However, this should not be a problem as banks that provide internet banking services prioritize security above anything else. Since they value their customers, they always use the most advanced security technology in protecting their websites.
3. Difficult for first timers. For a first time user, navigating through a website of an internet bank may be hard and may take some time. Opening an account could also take time as some sites ask for numerous personal details including a photo identification which can inconvenience the potential customer. Because of this complexity, they may be discouraged to use this internet banking service. Tutorials and live customer support may be provided, though, to help the client in his or her needed tasks so it's best to take the time to know the virtual environment.
Online Shopping
Online shopping is the process where consumers directly buy goods or services from a seller in real-time, without the need to hand over money, over the Internet. If a transation is present the process is called ecommerce. Nearly every mainstream shop in the UK will have an internet website connected to its products allowing people to browse and buy from the comfort of their own home.
A good example of online shopping are supermarket sites such as Tesco, Asda or Sainsbury's.
Tesco operates a grocery homeshopping service, as well as providing consumer goods, telecommunications and financial services online. Tesco gives customers the opportunity to buy goods online as if they were in one of the large tesco stores themself. This make shopping a lot easier for many people. When you are in a rush, the tesco website will save all of the products which you usually purchase for the next time you visit the website. This makes it quick and easy for people to do shopping which could take someone a number of hours. Furthermore, the older generation of people may find it difficult to get to a large supermarket chain, so it gives them the advantage of being able to do a big shop with no worries of how they are going to get their goods home. Also with Tesco.com you are offered the option of Tesco banking and insurance. This allows you to manage your bank accounts as well as sorting out your wide range of insurances from car to pet insurance. This is very handy as you are able to keep everything you need with one standard company rather than having many different organisations being apart of your life. Tesco are also linked with LOVEFiLM.com so you are able to rent DVDs through the Tesco website enabling them to recieve it with their shopping. This is very helpful because you do not have to go out to specifically get the DVDs. Lastly, Tesco has its own clothing range which is reasonable cheap affordable goods which are of pretty good quality. Advantages of Online Shopping4. Lack of trust. Let's face it, many people still don't trust the internet. For the new users who have performed financial transactions for only a few times, they may still have this doubt whether or not they did the right thing such as clicked the right button and so on. They can only be comfortable once they print the transaction receipt and the transaction appeared on the bank statement.
- Convenient
Convenience includes the overall ease of finding a product, time spent on shopping, minimization of overall shoppoing effort. Online shopping allows consumers to shop at the convenience of their own home, and to save traveling time to retail stores and spend their time on other important tasks and hobbies. Researchers idenfity convenience as a 'fundamental objective' related to online shopping. This is relevant to 72% of online shoppers' claim that they would rather surf online than go to retail store to attain information about a product . According to a study, 72% of online shoppers chose convenience over privacy. In addition to ease of finding products online and shopping time reduction, consumers can shop without time limitation with 24-hr access at their convenience because the World Wide Web never closees. Lokken mentions 24-hr access as a beneficial characteristic of online shopping. Also, consumers can exchange information online through chatting and discussion forums to help them make wise consumer decisions. - No need for vendors and no pressure to buy
Online shopping benefits both the society as a whole and individuals. The society can save human resources when consumers help themselves by browsing freely online instead of asking for assistance from vendors. In addition, consumers are freed from the pressure to buy from the vendors and can spend more time to make wise purchase decisions. But it is imorpant that Web sites have good product descriptions because it is one of the significant condition that satisfy consumers. - "Infinite shelfspace" available
Consumers desire a variety of products because they look for the right product that will fully satisfy them. There is infinite variety of products available online because online shopping allows consumers to browse through products that are made all around the world without geographical boundaries. - Able to compare product price and features
With the online tools that enable product comparison, consumers can compare product prices and features to make a better decision with less effort. More details are included in solutions section.
Disadvantages of Online Shopping
Many enjoy shopping with others and it is often a good way to make social connections. When shopping independently online, the enjoyment is lost.
Privacy is the number one reason that non-online shoppers do not shop online. Almost 95% of Web users have declined to provide personal information to Web sites at one time or another when asked (Hoffman, Novak, & Peralta, 1999). Another recent study has found that privacy was the top concern of customers while security ranked bottom. This proves that many do not trust the privay of the Internet and are concerned with their credit card fauds, unwanted solicitation, and use of their information for other purposes. Security of Web sites is not the top concern because many shop on Web sites that they trust so that other factors appear to be more important than security.
Because one needs money to buy a computer and to have internet connection, online shopping seems to be limited people of reasonable amount of income. Also, since it is harder to learn computer at an older age, the elderly people tend shop at traditional retail stores.
Product category risk is related to functional products such as apparel, perfume, and electronics, that have functions that cannot fully be expeirenced online. Online shopper are worried that the products will not be what they have expected by viewing online. This is a clear disadvantage of onlins shopping because it shows that "the likelihood of purchasing on the Internet decreases with increases in product risk". Apparels in particular had negative rating in online shopping because of it is difficult to feel and see the texture of color online that is incomparable to going to a retail store, even with magnifying tools online. Also, one cannot try on a clothing before buying it online, so it would be very inconvenient if the size did not fit the person and he/she had to return it.
Although having access to a very large number of products is highly desirable, consumers have limited cognitive resources and may simply be unable to process the potentially vast amounts of information about these alternatives. Online stores need to provide the variety in an organized way that will facilitate shopping online.
NEWS STORIES
Internet bank fraud probe widens
Three men have been released on police bail after being arrested by officers investigating Britain's first break-in at an online bank. The men were arrested in dawn raids by officers of the National Crime Squad on seven homes around Milton Keynes following a six month investigation into internet fraud at Egg, Britain's first online bank. The men were released without charge.
Egg said on Wednesday that fraudsters, who attempted to establish bogus accounts, stole "a handful of thousands of pounds" from the bank, in which Prudential has a majority stake.
The National Crime Squad confirmed that other internet banks may also have been targeted.
"We are not prepared to discuss the detail of the fraud but we can confirm that our inquiries now indicate that it is possible that other internet banks ... may also have been victims of similar fraud," the NCS said on Wednesday.
The average refund is 93 euro including 728 transactions in Northern Ireland totalling £34,721.
There are 17m ATM transactions valued at £1.3bn carried out annually by BoI.
When users complete a transaction and walk away from an ATM machine, leaving their cash and/or card behind, the machine pulls the money or card back in after a certain period of time.
However, during a four-year period ending in October 2009, those users' accounts were still debited for the cash by Bank of Ireland.
Bank of Ireland said the issue arose following the installation of anti-fraud measures, which resulted in the normal system response of an automatic refund failing for these particular transactions.
The bank discovered the issue during internal monitoring.
Bank of Ireland has apologised for the error and said it had enhanced procedures for handling "all such incomplete transactions so that customers accounts will not be debited".
The bank said about six people per ATM machine per year walk away leaving their cash and/or card.
Egg said on Wednesday that fraudsters, who attempted to establish bogus accounts, stole "a handful of thousands of pounds" from the bank, in which Prudential has a majority stake.
We can confirm that our inquiries now indicate that it is possible that other internet banks ... may also have been victims of similar fraud |
National Crime Squad |
"We are not prepared to discuss the detail of the fraud but we can confirm that our inquiries now indicate that it is possible that other internet banks ... may also have been victims of similar fraud," the NCS said on Wednesday.
Bank of Ireland refunds 'forgotten' ATM cash
More than 43,000 bank customers in the Republic and Northern Ireland are being refunded after failing to take their cash from Bank of Ireland (BoI) ATMs.
About 14,000 customers will receive 1.3m euro in refunds, while 1.7m euro will be returned to 29,000 customers of other banks who used the bank's ATMs. The average refund is 93 euro including 728 transactions in Northern Ireland totalling £34,721.
There are 17m ATM transactions valued at £1.3bn carried out annually by BoI.
When users complete a transaction and walk away from an ATM machine, leaving their cash and/or card behind, the machine pulls the money or card back in after a certain period of time.
However, during a four-year period ending in October 2009, those users' accounts were still debited for the cash by Bank of Ireland.
Bank of Ireland said the issue arose following the installation of anti-fraud measures, which resulted in the normal system response of an automatic refund failing for these particular transactions.
The bank discovered the issue during internal monitoring.
Bank of Ireland has apologised for the error and said it had enhanced procedures for handling "all such incomplete transactions so that customers accounts will not be debited".
The bank said about six people per ATM machine per year walk away leaving their cash and/or card.
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