Mobile Banking

Mobile banking refers to the use of a mobile device to carry out financial transactions. The
service is provided by some financial institutions, especially banks. Mobile banking enables
clients and users to carry out various transactions, which may vary depending on the institution.
Currently, mobile banking’s become easier with the development of cellular mobile applications.
Clients are now able to check their balances, view their bank statements online, make transfers,
and even carry out prepaid service purchases.

Purpose of Mobile Banking

Mobile banking allows consumers to be able to access banking services from anywhere.
Businesses and business owners are now able to save time by making use of mobile applications
to process their payments or even receive funds from clients directly to their phone numbers. It is
particularly popular among small to medium-sized enterprises (SMEs).
With mobile technology, banks are able to cut down on operational costs while still maintaining
client satisfaction. The fact that any client of a bank can make use of their app to request a
service, such as opening an account or even the ability to schedule debit orders or other
payments from an application, allows for larger transactional volumes, eventually driving
business growth.

Bank of Maharashtra Mobile Banking

Bank of Maharashtra is one of the leading banks of India with a customer-centric approach serving
various sectors of society. It offers up-to-date services to customers including the net banking and mobile
banking facilities. The Bank of Maharashtra mobile banking app provides the convenience of banking to
the customers. If you are a registered customer of Bank of Maharashtra, you can enjoy banking at your
fingertips with two applications viz. MahaMobile and MahaSecure App.
Bank of Maharashtra Mobile Banking Services

The MahaMobile App and MahaSecure App is the mobile application provided by the Bank of
Maharashtra. You need to download the application in your mobile device and activate it. You
can experience instant money transfer, bill payment, from anywhere around the globe without
any hassles at any time of the hour

How to Activate the MahaMobile Banking Application?

Below mentioned is the procedure to activate your mobile banking application with Bank of
Maharashtra instantly:

1. First, you need to make sure that you use your registered mobile number for mobile banking. If
not, you need to contact the bank via the nearest branch.
2. Install the MahaMobile app from relevant app stores as per your mobile device.
3. If you do not want to search from the app stores, you can send an SMS
– MAHAMOBILE to 9223181818. The bank will send you the link to download the mobile
application.
4. Open the app and click on the ‘New User Registration’ button displayed on the screen.

Read the terms and conditions of the mobile banking application and click on accept.
If you are a customer with Bank of Maharashtra, you are provided with an 11-digit customer ID number.
You need to enter this customer ID number next. If you do not remember this number, you can contact
the customer care.
Once you click submit, an automated SMS will be sent to your registered mobile number. In case you did
not use the registered number to login to the mobile application or you are not using that number in the
default SIM, you might need to visit the nearest branch of Bank of Maharashtra.
You can complete the procedure of registration by choosing one option from the three verification options
provided, they are:

 Internet Banking

Using the net banking ID and password, you can verify your registration procedure.
  ATM Card

Using the 16 digit ATM card number and the PIN, you can verify your registration.

 Branch
You can verify your registration from your nearest branch of Bank of Maharashtra with the 5
digit token provided to you via SMS.
 9. Next, you need to set your MPIN (Mobile banking Personal Identification Number) and MTPIN
(fund transfer to other banks through IMPS/NEFT)

After finishing the steps mentioned above, you can manage and operate your bank account with
your phone and a few clicks.

MahaSecure Application
 MahaSecure app is a secure digital application that offers secure access to their customers
for internet banking. This application ensures complete safety of the customer using internet
banking facility from the bank of Maharashtra. You can use the MahaSecure App from any
supporting devices. Banking activities like balance checking, fund transfer, bill payment, etc. are
just a click away with the MahaSecure application.

How to Download and Install the MahaSecure App?

You can easily download the MahaSecure app once you have been enrolled to use it by the Bank
of Maharashtra. After being enrolled to use the application, you receive the activation credentials
on the mobile number registered with the bank of Maharashtra. With the activation credentials,
you can activate the application by following a few simple steps. To use the internet banking
facility of the bank of Maharashtra, you need to download and activate the application. Below
mentioned are the steps to download and activate the application on your desktop.
You need to log in to the internet banking facility from the bank
through https://www.mahaconnect.in.

1. Download and install the MahaSecure app in your smartphone

2. You need to enter your internet banking User ID now.

3. You will receive a verification key on your registered mobile number. You need to enter this into
the activation code bar.
 4. Now, you got to set a secret question as well as provide the secret answer for the same.

5. Lastly, you need to set a 4 digit PIN which will be required every time you wish to log into the
MahaSecure application.

Features of Bank of Maharashtra Mobile Banking

Following are the key feature of the Mobile Banking Apps of the bank of Maharashtra:
Strength of mobile banking in bank of Maharashtra
 It is secure and easy to use
 It makes banking convenient
 Check your balance and view the mini statement of your account anytime for your
savings account, recurring account, current account, loan accounts, fixed deposit account,
etc.
 View, add, modify, as well as delete the chosen beneficiaries and make a transaction
within bank accounts
 Make transactions outside the bank using NEFT or IMPS
 Add or delete the list billers for monthly bill payment
 Pay the bills instantly without adding billers
 Check your bill payment history
 Apply for credit card, debit card, etc.
 Set your ATM PIN
 Block your ATM card in case of theft or loss
 Request for new cheque book, demand draft, loans, etc.
 Open a fixed deposit, recurring deposit, and such accounts
 Access your mobile passbook as well as change your MPIN and MTPIN anytime from
anywhere
 Make transfer funds using IMPS (Immediate Payment Service) and NEFT (National
Electronic Funds Transfer)
 No charges are applied for fund transfer from one account to another account within the
bank of Maharashtra
 Charges are applied on bank transfer from one account to another other than the bank of
Maharashtra bank

Bank of Maharashtra Mobile Banking Limit

There is a specified limit to make transactions using the mobile banking app, they are:

Transfer Type Transaction Limit

Transfer to own
No limit
account

Transfer to other
Rs. 50,000 per day
accounts within BOM

Utility bill payment Rs. 50,000 per day

IMPS Rs. 5000 per day

NEFT Rs. 50,000 per day

 Conclusion
Mobile banking is big platform of new technology which promotes banking functions
in India through mobile technology and also helps increasing their customers.
 Blockchain
Blockchain seems complicated, and it definitely can be, but its core concept is really quite
simple. A blockchain is a type of database. To be able to understand blockchain, it helps to first
understand what a database actually is. A database is a collection of information that is stored
electronically on a computer system. Information, or data, in databases is typically structured in
table format to allow for easier searching and filtering for specific information. What is the
difference between someone using a spreadsheet to store information rather than a database?
Spreadsheets are designed for one person, or a small group of people, to store and access limited
amounts of information. In contrast, a database is designed to house significantly larger amounts
of information that can be accessed, filtered, and manipulated quickly and easily by any number
of users at once.
Large databases achieve this by housing data on servers that are made of powerful computers.
These servers can sometimes be built using hundreds or thousands of computers in order to have
the computational power and storage capacity necessary for many users to access the database
simultaneously. While a spreadsheet or database may be accessible to any number of people, it is
often owned by a business and managed by an appointed individual that has complete control
over how it works and the data within it.
Storage Structure
One key difference between a typical database and a blockchain is the way the data is structured.
A blockchain collects information together in groups, also known as blocks, that hold sets of
information. Blocks have certain storage capacities and, when filled, are chained onto the
previously filled block, forming a chain of data known as the “blockchain.” All new information
that follows that freshly added block is compiled into a newly formed block that will then also be
added to the chain once filled.
A database structures its data into tables whereas a blockchain, like its name implies, structures
its data into chunks (blocks) that are chained together. This makes it so that all blockchains are
databases but not all databases are blockchains. This system also inherently makes an irreversible
timeline of data when implemented in a decentralized nature. When a block is filled it is set in
stone and becomes a part of this timeline. Each block in the chain is given an exact timestamp
when it is added to the chain.
Purpose of Blockchain :-
The goal of blockchain is to allow digital information to be recorded and distributed, but not
edited. Blockchain technology was first outlined in 1991 by Stuart Haber and W. Scott Stornetta,
two researchers who wanted to implement a system where document timestamps could not be
tampered with. But it wasn’t until almost two decades later, with the launch of Bitcoin in January
2009, that blockchain had its first real-world application.
The Bitcoin protocol is built on a blockchain. In a research paper introducing the digital
currency, Bitcoin’s pseudonymous creator, Satoshi Nakamoto, referred to it as “a new electronic
cash system that’s fully peer-to-peer, with no trusted third party.”
The key thing to understand here is that Bitcoin merely uses blockchain as a means to
transparently record a ledger of payments, but blockchain can, in theory, be used to immutably
record any number of data points. As discussed above, this could be in the form of transactions,
votes in an election, product inventories, state identifications, deeds to homes, and much more.

USES OF BLOCKCHAIN
There are other uses for blockchain, too, beyond the currency setting. Here are 20 potential uses
for blockchain technology.
1. Payment processing and money transfers
Arguably the most logical use for blockchain is as a means to expedite the transfer of funds from
one party to another. As noted, with banks removed from the equation, and validation of
transactions ongoing 24 hours a day, seven days a week, most transactions processed over a
blockchain can be settled within a matter of seconds.

2. Monitor supply chains

Blockchain also comes in particularly handy when it comes to monitoring supply chains. By
removing paper-based trails, businesses should be able to pinpoint inefficiencies within their
supply chains quickly, as well as locate items in real time. Further, blockchain would allow
businesses, and possibly even consumers, to view how products performed from a quality-
control perspective as they traveled from their place of origin to the retailer.
3. Retail loyalty rewards programs
Blockchain could further revolutionize the retail experience by becoming the go-to for loyalty
rewards. By creating a token-based system that rewards consumers, and storing these tokens
within a blockchain, it would incentivize consumers to return to a certain store or chain to do
their shopping. It would also eliminate the fraud and waste commonly associated with paper- and
card-based loyalty rewards programs.
4. Digital Ids
More than 1 billion people worldwide face identity challenges. Microsoft (NASDAQ:MSFT) is
looking to change that. It’s creating digital Ids within its Authenticator app – currently used by
millions of people – which would give users a way to control their digital identities. This would
allow folks in impoverished regions to get access to financial services, or start their own
business, as an example. Of course, Microsoft’s attempts to create a decentralized digital ID are
still in the early stages.
5. Data sharing
Cryptocurrency IOTA launched a beta version of its Data Marketplace in November,
demonstrating that blockchain could be used as a marketplace to share or sell unused data. Since
most enterprise data goes unused, blockchain could act as an intermediary to store and move this
data to improve a host of industries. While still in its early stages, IOTA has more than 35 brand-
name participants (with Microsoft being one) offering it feedback.
6. Copyright and royalty protection
In a world with growing internet access, copyright and ownership laws on music and other
content has grown hazy. With blockchain, those copyright laws would be beefed up considerably
for digital content downloads, ensuring the artist or creator of the content being purchased gets
their fair share. The blockchain would also provide real-time and transparent royalty distribution
data to musicians and content creators.
7. Digital voting
Worried about voter fraud? Well, worry no more with blockchain technology. Blockchain offers
the ability to vote digitally, but it’s transparent enough that any regulators would be able to see if
something were changed on the network. It combines the ease of digital voting with the
immutability (i.e., unchanging nature) of blockchain to make your vote truly count.
8. Real estate, land, and auto title transfers
One of the primary goals of blockchain is to take paper out of the equation, since paper trails are
often a source of confusion. If you’re buying or selling land, a house, or a car, you’ll need to
transfer or receive a title. Instead of handling this on paper, blockchain can store titles on its
network, allowing for a transparent view of this transfer, as well as presenting a crystal-clear
picture of legal ownership.
9. Food safety
Yet another intriguing use for blockchain could be in tracing food from its origin to your plate.
Since blockchain data is immutable, you’d be able to trace the transport of food products from
their origin to the supermarket. What’s more, should there be a food-borne illness, blockchain
would allow the source of the contaminant to be found considerably quicker than it can be now.
10. Immutable data backup
Blockchain might also be the perfect way to back up data. Even though cloud storage systems
are designed to be a go-to source for data safekeeping, they’re not immune to hackers, or even
infrastructure problems. Using blockchain as a backup source for cloud data centers – or for any
data, as Boeing is considering with GPS receivers on its planes – could resolve this concern.
11. Tax regulation and compliance
Have I mentioned how important transparency and immutability are yet? For example, marijuana
companies can use blockchain as a means to record their sales and demonstrate to lawmakers
that they’re abiding by local, state, and/or federal laws. More importantly, these sales act as a
clear record for the IRS that they’ve paid their fair share of taxes to the federal government,
assuming they’re profitable.
12. Workers’ rights
Another interesting use for blockchain is as a means to bolster the rights of workers around the
globe. According to the International Labor Organization, 25 million people worldwide work in
forced-labor conditions. Coca-Cola, along with the U.S. State Department and other partners, is
working on a blockchain registry complete with smart contracts – protocols that verify, facilitate,
or enforce a contract – to improve labor policies and coerce employers to honor digital contracts
with their workers.
13. Medical recordkeeping
The good news is the medical sector has already been moving away from paper for
recordkeeping purposes for years. However, blockchain offers even more safety and
convenience. In addition to storing patient records, the patient, who possesses the key to access
these digital records, would be in control of who gains access to that data. It would be a means of
strengthening the HIPAA laws that are designed to protect patient privacy.
14. Weapons tracking
One of the hot-button topics on any news network at the moment is gun control and/or weapons
accountability. Blockchain could create a transparent and unchanging registry network that
allows law enforcement and the federal government to track gun or weapon ownership, as well
as keep a record of weapons sold privately.
 15. Wills or inheritances
Blockchain may also be able to put your end-of-life concerns to rest. Rather than creating a paper
will, people may have the option of creating and storing their digital will on a blockchain
network. When used with smart contracts, which could divvy out inheritances based on when
certain criteria are met (such as when a grandchild reaches a certain age), wills should become
crystal clear and legally binding, leaving no questions as to who should receive what assets when
you pass away.
16. Equity trading
At some point, blockchain could rival or replace current equity trading platforms to buy or sell
stocks. Because blockchain networks validate and settle transactions so quickly, it could
eliminate the multiday wait time investors encounter when selling stock(s) and seeking access to
their funds for the purpose of reinvestment or withdrawal.
17. Managing Internet of Things networks
Networking giant Cisco Systems may be behind a blockchain-based application that would
monitor Internet of Things (IoT) networks. The IoT describes wirelessly connected devices that
can send and receive data. Such an application could determine the trustworthiness of devices on
a network – and continuously do so for devices entering and leaving the network, such as smart
cars or smartphones.
18. Expediting energy futures trading and compliance
Even the energy industry is getting in on the act. Similar to the benefits it could bring to equity
traders above, blockchain offers the ability to help energy companies settle futures trading
considerably faster than they currently do. It’s also worth noting that blockchain could help
energy companies with regard to logging their resources and maintaining regulatory compliance.
19. Securing access to belongings
Smart contracts within blockchain networks also have the ability to be customized to a
businesses or consumers’ needs. As a consumer, you could use blockchain as a means to grant
access to your house for service technicians, or allow your mechanic access to your car to
perform repairs. But without this digital key, that only you possess, these service technicians
wouldn’t be able to gain access to your belongings.
20. Tracking prescription drugs
Finally, blockchain could be a means of transparently tracking prescription medicines. In a world
where prescription returns do occur, and counterfeit medications are a real thing, blockchain
offers drugmakers the ability to track their products based on serial and/or batch numbers to
ensure that consumers are getting the real deal when they pick up medicine from the pharmacy.
Merck is currently testing such a system for prescription drug returns.
Strength of Blockchain
The basic strengths of Blockchain technology are decentralization, immutability, security, and
transparency.
1) Distributed
Since blockchain data is often stored in thousands of devices on a distributed network of
nodes, the system and the data are highly resistant to technical failures and malicious attacks.
Each network node is able to replicate and store a copy of the database and, because of this,
there is no single point of failure: a single node going offline does not affect the availability
or security of the network.
In contrast, many conventional databases rely on a single or a few servers and are more
vulnerable to technical failures and cyber-attacks.
2) Stability
Confirmed blocks are very unlikely to be reversed, meaning that once data has been
registered into the blockchain, it is extremely difficult to remove or change it. This makes
blockchain a great technology for storing financial records or any other data where an audit
trail is required because every change is tracked and permanently recorded on a distributed
and public ledger.
For example, a business could use blockchain technology to prevent fraudulent behavior
from its employees. In this scenario, the blockchain could provide a secure and stable record
of all financial transactions that take place within the company. This would make it much
harder for an employee to hide suspicious transactions.

3) Trustless system
In most traditional payment systems, transactions are not only dependent on the two parties
involved, but also on an intermediary – such as a bank, credit card company, or payment
provider. When using blockchain technology, this is no longer necessary because the
distributed network of nodes verify the transactions through a process known as mining. For
this reason, Blockchain is often referred to as a ‘trustless’ system. Therefore, a blockchain
system negates the risk of trusting a single organization and also reduces the overall costs
and transaction fees by cutting out intermediaries and third parties.

4) The blockchain technology allows for verification without having to be dependent on

third-parties.
5) The data structure in a blockchain is append-only. So, the data cannot be altered or
deleted.

6) It uses protected cryptography to secure the data ledgers. Also, the current ledger is
dependent on its adjacent completed block to complete the cryptography process.

7) All the transactions and data are attached to the block after the process of maximum trust
verification. There is a consensus of all the ledger participants on what is to be recorded
in the block.

8) The transactions are recorded in chronological order. Thus, all the blocks in the
blockchain are time stamped.

9) The transactions stored in the blocks are contained in millions of computers participating
in the chain. Hence it is decentralized. There is no possibility that the data if lost cannot
be recovered.

10) The transactions that take place are transparent. The individuals who are provided
authority can view the transaction.

11) The origin of any ledger can be tracked along the chain to its point of origin.

Suggestion

1. 51% Attacks
The Proof of Work consensus algorithm that protects the Bitcoin blockchain has proven to be
very efficient over the years. However, there are a few potential attacks that can be
performed against blockchain networks and 51% attacks are among the most discussed. Such
an attack may happen if one entity manages to control more than 50% of the network hashing
power, which would eventually allow them to disrupt the network by intentionally excluding
or modifying the ordering of transactions.
Despite being theoretically possible, there was never a successful 51% attack on the Bitcoin
blockchain. As the network grows larger the security increases and it is quite unlikely that
miners will invest large amounts of money and resources to attack Bitcoin as they are better
rewarded for acting honestly. Other than that, a successful 51% attack would only be able to
modify the most recent transactions for a short period of time because blocks are linked
through cryptographic proofs (changing older blocks would require intangible levels of
computing power). Also, the Bitcoin blockchain is very resilient and would quickly adapt as
a response to an attack.

2. Data modification
Another downside of blockchain systems is that once data has been added to the blockchain
it is very difficult to modify it. While stability is one of blockchain’s advantages, it is not
always good. Changing blockchain data or code is usually very demanding and often requires
a hard fork, where one chain is abandoned, and a new one is taken up.
3. Private keys
Blockchain uses public-key (or asymmetric) cryptography to give users ownership over their
cryptocurrency units (or any other blockchain data). Each blockchain address has a
corresponding private key. While the address can be shared, the private key should be kept
secret. Users need their private key to access their funds, meaning that they act as their own
bank. If a user loses their private key, the money is effectively lost, and there is nothing they
can do about it.

4. Inefficient
Blockchains, especially those using Proof of Work, are highly inefficient. Since mining is
highly competitive and there is just one winner every ten minutes, the work of every other
miner is wasted. As miners are continually trying to increase their computational power, so
they have a greater chance of finding a valid block hash, the resources used by the Bitcoin
network has increased significantly in the last few years, and it currently consumes more
energy than many countries, such as Denmark, Ireland, and Nigeria.
5. Storage
Blockchain ledgers can grow very large over time. The Bitcoin blockchain currently requires
around 200 GB of storage. The current growth in blockchain size appears to be outstripping
the growth in hard drives and the network risks losing nodes if the ledger becomes too large
for individuals to download and store.
6. Closing thoughts
Despite the downsides, blockchain technology presents some unique advantages, and it is
definitely here to stay. We still have a long road to mainstream adoption, but many industries
are getting to grips with the advantages and disadvantages of blockchain systems. The next
few years will likely see businesses and governments experimenting with new applications to
find out where blockchain technology adds the most value.
7. Single Currency :
Potential for a Single Currency. I personally don’t think this will ever happen, but the idea of
just one currency, even a decentralized one, terrifies me. Every network has some form of
consensus used for validating transactions, but there is always a potential even with a very
simple system like Bitcoin that control of the technology could be vested in the hands of
those using it for their own benefit against the masses. As long as we have multiple choices
there will be less risk of this.

8. Privacy :
Privacy is a huge concern for blockchain because it’s transparent. You don’t want your
competition to know who you are doing business with or who you are paying. Unfortunately
Bitcoin is not private money. Many have turned to coins like Monero, a digital coin that
offers a higher degree of anonymity and untraceability baked into its design.

9. Regulation :
Regulation for crypto and blockchain is all over the place. Everyone wants a piece of the
regulation and companies want to comply, but there is no solid framework for current
companies and organizations to operate from.

10. Hacking :
We need to take security very seriously. People new to crypto are not used to having to be so
careful about personal security, and that makes it easier for hackers to steal crypto from
mainstream users.

11. Lack of maturity :

Lack of maturity. Obviously, a lot of the folks involved in this industry right now are really
young. I think this can sometimes lead to decisions that aren’t so well thought-out
 Conclusion

Blockchain, a decentralized ledger technology, has found its applications in various fields such
as cryptocurrency that includes Ethereum and Bitcoin. The use of Bitcoin in the digital market
has grown enormously due to its increasing value and has made transactions secure and
verifiable. It is accepted widely for transactions over the internet across the globe. All
transactions which take place are secured and stored in a network called the blockchain. It is a
form of distributed database which stores transactions. Since it is decentralized, it is not
controlled by a single organization. It uses the concept of cryptography through which it has
achieved the trust of several users. There are various consensus algorithms which can be applied
to a variety of applications. Among them, PBFT is adapted by most of the industries owing to its
better performance as compared to other algorithms. Today, enormous research is being carried
out in the field of Blockchain Technology which has brought about a radical change in the
functioning of healthcare, finance, banking, education, cyber security, etc. Although there are
certain drawbacks in the field of blockchain, we cannot deny the fact that blockchain would
bring a potential change in the field of technology.

Computers in Banking and Financial institutions

Modern banks use computers for storing financial information and
processing transactions. Tellers and other employees also use them to log
information. Customers often use computers for online banking. Computers
have revolutionized accounting and bookkeeping, and banks were some of
the first to switch to computers. Processing transactions manually takes a
considerable amount of time, and even expensive computers allowed banks
to save money on labor costs. These systems are also great at avoiding
mistakes.
Banking tellers also use computers to access customer data quickly. Instead of having to find a
file for every customer who enters, tellers can simple type in the customer’s name and bring up
relevant data instantly. These systems can also process many transactions when the customer is
present, so tellers can give customers receipts reflectng deposits and withdrawals.
Online banking has become more popular over the years, and people do not have to go to the
bank as often as they once did. Some banks even operate exclusively online by providing online
banking functionality and phone support when needed. These banks have lower operating costs,
and many are able to provide lower fees for their customers. Credit card companies and other
financial institutes have followed suit and allow customers to access information and process
transactions online.

Purpose of Computers in banking and financial institutions

and where it is used

Account Management
In banking, activities start with banks automating customer accounts, which allows personnel to
create, update and maintain customer records. Banking hardware and software have enhanced the
accuracy of accounts that tellers and other banking personnel process. Banking software
performs customer transactions through a centralized data record system. Account management
is the genesis and backbone of all banking information systems.

Hardware Technology
In the 1960s, bank hardware consisted of a mainframe and a punch card machine. Punch cards
contained customer account information and were read into the main system by a punch card
machine. Midrange and client/server hardware configurations, which are no larger than a
minitower system, can run an entire bank in addition to receiving transactions from affiliated
bank branches. These new hardware technologies can process more transactions than legacy
banking hardware systems. Hardware technologies have enabled advances into wireless banking
and telecommunications banking.
Electronic Transactions
Banking systems must perform electronic transactions. Direct deposit is an example of an
electronic transaction. Computers processing electronic transactions must have hardware and
software encryption capabilities to keep data from being compromised during a transmission.
After the computer performs electronic transmissions, it transfer the information to the main
computer system for processing and updating. Banks have extended electronic transaction
capabilities through landline and cell phones, the Internet and ATMs.

Web-based Banking
Web-based banking systems use a dedicated server through a bank network system. An area of
the banking system is partitioned for Internet applications. Web-based banking systems by law
must include secure servers and authenticated certificates regarding transactions from the Federal
Deposit Insurance Company and the Federal Reserve Board. Customers who choose to bank
online can access their account through a web interface, which integrates with the main
computer. A customer’s credentials – user ID and password – pass through several checkpoints
before entering the main system to perform a web-based transaction.
Strength of using computers in banking and financial
activities
1. Convenience
One of the biggest advantages of online banking technology is that it allows you to handle
transactions and monitor your bank statements anytime, anywhere and anyplace. You can access
your account on your computer or smart phone 24/7 – when it’s most convenient for your
schedule.
2. Fewer bank visits
Another great advantage is a new technology known as Remote Deposit Capture. It’s an online
service that lets you scan and deposit checks from your home, office or other locations without
having to go to your bank. It lets you make deposits faster, with less time spent driving to your
bank.

3. Faster transactions
When you conduct your banking online, your transactions are processed almost instantly. For
example, you can make purchases or make payments with a debit card instead of a check, and
the transactions shows up on your account almost immediately. This gives you more control of
timing for transactions, and a better, more accurate view of your current account balance.
4. Working with your accounting software
As a small business, you probably use an accounting software program. Many banks now let you
tie your bank account information directly to your accounting software. This gives you more
accurate and updated financial statements for your company. It also lets you view your financial
statements almost instantly, without having to add your bank account numbers.
5. Fund transfers
Many small businesses and entrepreneurs have multiple bank accounts – personal accounts,
company accounts, savings accounts, etc. You often need to transfer funds from one account to
another, and ACH (Automated Clearing House) transfers lets you do it relatively quickly. This
can be a huge help in paying bills, meeting payroll deadlines and managing cash flow.
6. Fast payment options
ACH gives you the ability to make payments from your business account to any external
account. The most common uses for ACH are direct deposit payroll, vendor payments and
membership or monthly dues. Business Online Bill Pay is another payment option that is
commonly used by businesses to pay regular bills, such as utilities and credit card payments.
Finally, wire transfers can also be initiated online, when transfers to external accounts need to be
made the same business day.
These are just a few of the many changes and benefits new technology has brought to small
business banking. Make sure you stay abreast of these changes. The more you understand about
technology and banking, the better you can run your business.

Types of eCommerce Payment Systems

One of the biggest challenges associated with doing business online is collecting customer
payments. Unlike a brick-and-mortar store where transactions take place in person, online
customers charge purchases without presenting a physical charge card. Online merchants need
secure tools for payment collection, and the tools need to work within the framework of their e-
commerce website. There are several types of payment methods currently used for online
shopping and bill paying.

Types of Electronic Payment Systems

The most popular e-commerce payment systems include:

Credit and Debit Cards: Visa, MasterCard, Discover and American Express are some of the
most popular credit cards used for online purchases. Debit cards, which deduct money directly
from a bank account, are used for e-commerce in many countries but are not popular in the
United States.

Bank Transfers: Some online shopping sites allow customers to send money directly from a
bank account by initiating a bank transfer. Most banks allow customers to set up one-time or
recurring electronic payments for purchases and services.

E-wallets: This type of online payment service includes PayPal, Google Pay and Apple Pay. The
service lets customers make prepayments and bank transfers to cover online payments. PayPal is
the leader in this arena with more than 200 million active users. Unlike e-wallets like Apple Pay
that only work on a particular brand of devices, PayPal works across all types of equipment that
can access the internet.

Electronic Payment Gateways

An electronic payment gateway is a software service used by an e-commerce website to handle
credit card transactions. The most popular payment gateways such as PayPal and Skrill include
developer tools that programmers use to customize payments according to business
requirements. Payment gateways also integrate with other software applications like QuickBooks
to make it easy to track purchases.
The gateway system sends credit card transactions to the card vendor and receives a confirmation
when payments are authorized. Similar to using a point of service in a retail store that handles
credit transactions at the cash register, interacting with a payment gateway is typically the final
part of the online purchase process. Because electronic payment gateways can’t process the
magnetic strip or chip on a physical credit card, there is more opportunity for fraud during the
final purchase steps.
Some retail websites allow customers to store their payment information online. This
convenience presents additional risks and should only be used with absolutely trustworthy stores.
Even so, hacks of major online retailers over the years have exposed the personal data of
millions of people.

Electronic Payment System Advantages

Electronic pay systems are part of the new reality of cashless retail that appeals to millennials
and others who spend many hours per day online. They differ from traditional payment methods
like cash and checks because they involve the electronic transfer of funds without human
intervention. For this to work safely and securely, e-commerce systems must offer the latest in
data encryption and credit card authentication technology.
Using an e-commerce payment system enables an online retailer to reach a broad audience of
potential customers. Without the limitations of a physical retail store, online customers can shop
24 hours per day from almost any location. Since most purchases occur automatically, far fewer
sales associates are needed.
Another significant advantage of electronic payment systems is the speed with which they
conduct transactions. Once a customer decides to make a purchase, there’s no need to wait in a
checkout line. In most cases, online purchases made through e-commerce payment systems can
be completed almost as soon as the customers enter their identification information, even if the
actual charges don’t appear on their credit card for one or two days.

Types of Computers Used in Banks

Banks use a wide range of computers to carry out regular, day-to-day operations. Computers
allow banking personnel to efficiently carry out transactions, process customer needs, forecast
future trends, prepare internal and external reports, communicate with key participants and
generate profits. Banking computers include large mainframe computers—which are often large
enough to fill entire rooms—to smaller, hand-held personal digital assistants.
Mainframe Computers
Mainframe computers that are used in banking institutions store data pertaining to client records,
domestic operations and other vital processing information. A large bank with numerous
branches may have a mainframe computer in its central headquarters and linking terminals
located in each of its branches. One of the greatest advantages of a mainframe computer for the
banking sector is its ability to perform time-sharing. Time-sharing allows multiple users to
access the same computer (and its resources) simultaneously. Mainframe computers have
incredibly fast data-processing speeds and in-built fault tolerance mechanisms, reduce labor
costs, and support a wide range of workloads and uninterrupted processing. According to
“Understanding Computers: Today and Tomorrow, Comprehensive,” mainframe computers are
sometimes referred to as enterprise-class servers or high-end servers. Examples of mainframe
computers used by banks include Fujitsu-ICL VME and BS2000 machines.

Minicomputers
Minicomputers are a class of computing machines that range in size between large mainframe
computers and smaller, personal computers. They function as Internet servers and network
servers in banking operations. According to “Telecommunications: A Beginner’s Guide,”
minicomputers allow banks to shift from centralized to distributed processing. Banks use
minicomputers as file storage systems, to run email systems and perform Internet operations. The
typical minicomputer is capable of supporting more than 64 terminals. Examples of
minicomputers used in banks include the Wang Laboratories 2200 and VS series and Nova from
Data General.

Personal Computers
Individual users typically employ personal computers to carry out operations. Personal
computers, or microcomputers, either function as part of a larger wide area network (WAN) or
local area network (LAN), or as independent, self-contained, devices. PCs used in the banking
sector are programmed to run spreadsheet, word processing and database software, in addition to
web browsers and email clients. Microcomputers typically used in banks include tablet PCs,
notebooks and laptops, desktop computers, palmtop computers, programmable calculators and
personal digital assistants.
 Conclusion
The mobile and wireless market has been one of the fastest growing markets
in the world. The arrival of technology and the escalating use of mobile and
smart phone devices, has given the banking industry a new platform.
Connecting a customer anytime and anywhere to their money and needs is a
must have service that has become an unstoppable necessity. This
worldwide communication is leading a new generation of strong banking
relationships. The banking world can achieve superior interactions with their
public base if they accommodate all their customer needs. They have a
unique challenge to keep their customer alliances and keeping up with the
new technologies, and competitive strategies that other banks also have to
offer the public. Conveniences of services plus outside locations like ATMS
are crucial to every banks success. Meeting all challenges including safety
and security are perfect examples of good banking strategies. In order for
the financial institutions to effectively grow they must embrace the new
technologies and customize them to suit their economic success and the
public’s success. Online banking is certainly here to stay. Online banking is a
necessity for the bank's that we studied and others in order for them to stay
in business. While its existence doesn't necessary give them a competitive
edge because it is so common place, it is truly a cost of doing business. As a
tool of modern living and as a lifestyle aid, it is absolutely indispensable. The
fact is that many services that are now being offered with online banking are
almost impossible to do conveniently with regular banking. As we venture
into the future, the internet will undoubtedly continue to change the banking
industry.