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Unit 13: Supply Chain Management and JIT

In electronic banking, deposits and withdrawals are instantly logged into a customer's account Notes
that can be stored on a remote computer. Computer-generated monthly statements are now a
regular feature of all progressive banks. The technology of electronic funds transfer, supported
by computer networking, allows the amount of each purchase to be immediately deducted from
the customer's bank account and transferred to that of the seller. All this has been made possible
due to the development of fail safe security technologies. Bank customers have to be protected
from Intruders intercepting or accessing confidential information on financial transactions.
Some EFT services that are offered include the following:
1. Automated Teller Machines or 24-hour Tellers are electronic terminals that let you bank
almost any time. To withdraw cash, make deposits, or transfer funds between accounts,
you generally insert an ATM card and enter your PIN. Some financial institutions and
ATM owners charge a fee, particularly to consumers who don't have accounts with them
or on transactions at remote locations.

2. Direct Deposit lets you authorize specific deposits, such as paychecks and Social Security
checks, to your account on a regular basis. You also may pre-authorize direct withdrawals
so that recurring bills, such as insurance premiums, mortgages, and utility bills, are paid
automatically.
3. Pay-by-Phone Systems let you call your financial institution with instructions to pay
certain bills or to transfer funds between accounts. You must have an agreement with the
institution to make such transfers.

4. Personal Computer Banking lets you handle many banking transactions via your personal
computer. For instance, you may use your computer to view your account balance, request
transfers between accounts, and pay bills electronically.
5. Point-of-Sale Transfers let you pay for purchases with a debit card, which also may be
your ATM card. The process is similar to using a credit card, with some important exceptions.
While the process is fast and easy, a debit card purchase transfers money – fairly quickly
– from your bank account.

6. Electronic Check Conversion converts a paper check into an electronic payment at the
point of sale or elsewhere, such as when a company receives your check in the mail. The
check is processed through an electronic system that captures the banking information
and the amount of the check. Once the check is processed, the company can present the
check to your bank electronically and deposit the funds into their account.
Banks are moving to shift their customers to electronic channels – and cross-marketing related
financial services such as brokerage and travel along the way. So-called smart cards and stored
value cards are now considered a part of e-commerce. The communications element may not
always be obvious, but somewhere in the background, computer accounts are usually being
credited and debited.
New developments are making banking electronically more safe and at the same time improving
the quality of service. Transactions are faster and also more convenient; performed at any hour
of the day or night, often regardless of location. Much e-commerce may soon be performed
using a mixture of voice recognition and text messaging from mobile telephones. New systems
use speech recognition to verify the user's identity to make payment without human
involvement.
The reduced costs of processing and documentation in financial transactions makes electronic
banking more competitive compared to traditional banking. In 2002, this resulted in over $33
billion in transaction revenues being transferred from the physical to the electronic value chain
in the US alone.

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