What Are The Uses Of Computers In The Banking Industry?


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Shane Richardson Profile
Banks were quick to realise the potential benefits of computers, and adopted the technology early.

In recent years, we have seen the integration of banking systems with the wider Internet - which has given us Internet and mobile banking services.

Automated Teller Machines (ATMs)
At least one ATM, (or cash-point) can be found on every high-street.

These machines are themselves computers. However, without the mainframe backbone (a group of interlinked computers), there would be no way for an individual machine to tell you how much money you had available, or to update your balance after a transaction.

Before the adoption of ATMs, you would have had to wait for your local branch to open, before you could make a withdrawal. Some people might see ATMs as a bad thing, since they encourage spontaneous spending!

Internet Banking
Another way in which computers make it easier for customers to manage their money is through Internet banking. Customers can now view their balances, and set up payments from their own computer, at any time of day.

Decision Making
Beside keeping a record of each customer's transactions and products held, banks will perform analyses on this data, in order to make decisions about a customer's suitability for other products offered by the bank.

A customer's ability to manage their current account, overdraft, credit-cards and loans will directly affect what options are made available to them when applying for financial products in the future. The extensive data and analysis that is required to make these assessments makes computers the perfect solution to this problem.

Management and Backroom
Like any business, a bank must keep an eye on its own financial performance, and produce analyses and reports which support the strategic development of the company. It will also have to manage its employee payroll, and track operational expenses, among many other things.

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