as it disccused

Benefits of Technology in Banking Today

1. Changes in Technology

a. Computer systems they have

i. FIS

1. processes checks, loan payments, etc every day

2. Before it was done by hand

3. 5 decades ago there were not even account numbers for checks and stuff and the store asked which bank you were with

4. Did away with float in the system

2. Technology in the Future of Banking

a. Less brick and mortar

b. Mobile Banking

c. Online account opening

d. Check depositing via photograph

3. Octane System

a. Automatic Approval of loans where human never makes the decision

i. controversial issue with bankers

ii. Some banks under a certain loan amount never have a person look at the application

b. How credit score usage has changed because of automatic approval

c. This bank does about 5,000 applications per month through this program

d. Helps to evaluate credit risk for the bank and recommends banking or not based on certain required standards

4. How Bank Websites have changed

a. Before

i. Struggled for content

ii. Limited Pages on the website

iii. Only transfer between a person’s accounts

iv. Could take up to two days or more to receive fund transfers

b. Now

i. Direct deposits

ii. Mobile banking

iii. Transfers can be done between people and even between banks

iv. Expansive websites and features

v. Easy to use and navigate

vi. More instantaneous for depositing money

5. Working in the IT Department

a. Two different Aspects

i. Trying to make things more productive/efficient

ii. Security

1. Banking is based on trust

a. Community banks base a lot of business on trust

2. Build layered security

a. Protects inside of the bank with firewalls and third-party internet searchers

6. Banking Risks

a. Bank Risks

i. -Lending out money

1. -Loans are given out with other depositor’s money

ii. Skimmers

1. Bluetooth devices are often used now

2. New ATM models are flat to help against this

b. Consumer Risks

i. Online purchasing is the biggest one

1. Increases risk of being hacked

ii. Skimmers on card swipers

7. Fraudulent Transactions

a. Checks no longer required.

b. Increases risk of fraud through debit cards

i. -Bankers trying to get congress involved to:

1. Take down website that sells the card plastic

2. Limit sales of card plastic machines to financial institutions

a. -Congress not interested in fixing either

8. Magnetic Strip on Back of card

a. Holds 7 pieces of info

i. Card Number

ii. Expiration

iii. CVV…etc

b. Using Card info in store

i. Send a code called a “token” to the retailer

1. Does not send your card number

2. Chip has 100 pieces of info on it

3. Lower risk than swiping your card

9. Congress Restrictions

a. Congress seems not to care

i. Busy doing other things

1. Tax adjustments, etc

a. Congress is not aware of the impact of the tax break

ii. Congress may be afraid to act for fear of being re-elected

10. Pros Outweigh the Cons of Technology

a. Because the convenience for bankers to

i. Provide better service

ii. Become larger

iii. Stay in business

b. Convenient for customers