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Uses of Computer in Banks

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Computer in Banks

Computers are used in banking in order to decrease costs and time spent. They are used for work like maintaining accounts, storing data, providing security, etc. 


Top 10 uses of Computers in Banks


Top 10 uses of Computers in Banks. 


Top 10 Uses of Computer in Banks 

1. Updating Pass Books: Computers are used to do the work of updating pass books. Nowadays automated machines are used for this job in banks. 


Updating Pass Books


Updating Pass Books. 


2. Maintaining Accounts: Computers can accurately maintain accounts of credit and debit. Unlike physical accounts, there is very less possibility of making any mistake while maintaining accounts through a computer. 


Maintaining Accounts


Maintaining Accounts. 


3. Store Data: Employees of banks enter information about customers like their name, address, birth date, etc. on computers. It is capable of storing large amounts of data, thus making it very useful for banks.


Storing Data


Storing Data.


4. Do Calculations: Banks are often required to perform millions of calculations in a single day. Doing those calculations by pen and paper will be almost impossible. While computers can do that flawlessly and accurately.


Doing Calculations


Doing Calculations. 


5. Provide Security: Computers are more secure for storing data. Physical documents can be torn, destroyed or stolen. While computers keep them safe in digital format,thus providing security to its customers.


Providing Security


Providing Security. 


6. To Provide Inter-Branch Services: A customer may want to perform banking activities from another branch. In that case, information about account holders is available at another branch though the internet because of the use of computers.


Inter Branch Services


Inter Branch Services.

 

7. Facilitate the Process of Buying and Selling Shares: Demat accounts are now used for the purchase and sales or shares today. Banks provide the facility of directly transferring amounts to and from a company's account, thus making the process of buying and selling shares easy. 


Buying and Selling of Shares


Buying and Selling of Shares. 


8. Process Account Statements for Customers : Customers want the information about the transactions being conducted by them. It is made possible by the use of computers. 


Bank Account Statements


Bank Account Statements 


9. Web-Based Banking: In the present time, there is a facility of sending and receiving money through the internet. Banks use computers to make this web based banking available to people.


Online Banking


Online Banking. 


10. Provide Customers with Receipts: When customers make a deposit or withdrawal, they are provided with a receipt as proof of the transaction made. When a person does banking activity with an ATM, then also he/she is provided with a receipt.


Bank Receipts


Bank Receipts. 


Important Terms 

  • Banks: Institutions which provide the facility of banking. 

  • Pass books: Banks record credit and debit transactions in this for record. 

  • ATM: Automated Teller Machine ; used to remotely withdraw and deposit money without going to the bank. 

  • Account Statement: Banks issue statements of accounts of customers to let them know about their current financial situation. 

  • Web based banking: Facility of sending and receiving money through the internet is called web based banking

  • Receipt: Proof that is provided to prove that money has been paid or received. 


Solved Questions and Answers 

1. Why are computers used in banks?   

Ans: Computers in banks are used because they reduce the amount of money and time taken to do work.

 

2. What are the functions done by computers in banks? 

Ans: The functions done by computers in banks include maintaining accounts, providing security and web based banking, etc. 


3. How do computers in banks save money and time?   

Ans: Computers in banks save money and time because they can store and process information in more amounts and accurately than humans. 


Learning by Doing 

1. In which of the following fields are computers used?

  1. Healthcare 

  2. Education 

  3. Banking 

  4. All of The Above


2. For which of the following are computers used in banks? 

  1. Maintaining accounts 

  2. Drawing paintings 

  3. Composing songs

  4. Designing buildings 


3. What is the full form of an ATM? 

  1. Any Time Money 

  2. Automated Teller Machine 

  3. Always Timely Money

  4. All Towards Movement 


Summary

Banks are useful for many different functions like storing data,maintaining accounts, making receipts, providing security , web based banking, etc. It makes very complicated processes easy to do and helps save money and time while also doing the work economically. 

FAQs on Uses of Computer in Banks

1. What is the use of computers in banking applications?

Computers are used to store large amounts of data regarding customers and process transactions quickly and accurately.

2. What are the benefits of computers to banking?

Activities like maintaining accounts, storing data, doing calculations, etc. become much easier due to the use of computers. These are the benefits of computers to banking.

3. What are the uses of technology in the banking sector?

Technology is used to provide services like inter-branch services, process account statements, provide security, etc.