Computers in Banking

Use of Computers in Banks

Computers are used in banks for a variety of reasons. They help bank personnel operate more efficiently and effectively. Computers are used to track certain transactions and they help process other customer information as well. Without computers, it would be very hard for a bank to offer good customer service day in and day out. Computers help a bank save time and money, and can be used as an aid to generate profits. Most of the banking done online by the use of the computers, Known as internet banking. You don't have to walk up to the bank for virtually anything. You can withdraw money from ATMs and deposit money in any branch. In near future there will not be any tellers in the front line. 

Customer Information

Banks use computers to track customer information such as name, address, and phone number, date of birth, Social Security number and place of employment. This information is used to stay in touch with customers and notify them of any changes in bank policy. A customer address is needed to send out statements on a monthly basis. A customer's account number is also stored in the computer, which gives bank employees the ability to access customer information efficiently.

Products

The number of products and services a customer has is also stored in computers. Bank personnel will periodically call customers at home to offer them a product or service, such as a home equity line of credit. It helps to know which products a customer already has before any new products are offered. Without the use of computers, it would be difficult to keep track of this information.

Reports and Profits

With a computer, banks can analyze aging reports and track the customers who have had checks returned due to nonsufficient funds. This report can be used by the sales associates to call these customers and offer them a product called overdraft protection, which prevents a customer from over drafting their account. Computers help bank personnel generate income by targeting certain customers for sales activity.

Transactions and Goals

Computers help tellers keep a record of all transactions for the day. When customers make deposits and withdrawals, cash checks, open checking accounts or apply for mortgage loans, a computer will store and track all of the information once a teller or bank employee keys it into the system. After tabulating all of the information, a branch manager can print the report at the end of the day to see if the branch hits its goals and objectives. Branches have goals for lending and new accounts.

Credit Applications

A bank can use computers for new loan applications and credit card applications; Chex Systems verification; and opening new accounts such as checking, savings or certificate of deposit accounts.

Delinquency

Computers can be used to track customers who are delinquent on their loan and credit card payments. Computers can generate separate reports for customers who are 30-, 60- and 90-days delinquent on their accounts. When a 30-day delinquency report is generated, a collection representative can contact the customer for resolution, which helps keep delinquency under control.

Miscellaneous

Computers can keep a record of all communications that a bank employee may have with a bank customer including collection activity. A bank can also use a computer to see which safety deposit boxes are available and they can keep a record of customers who have safety deposit boxes.