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TelebankingIntroduction Telebanking is a throwback to the days when people would call into a central number at their bank institution in order to get balance, check status and other account-related information. Telephone banking times can be longer than branch opening times, and its offer the service on a 24 hour basis. From the bank's point of view, telephone banking reduces the cost of handling transactions by reducing the need for customers to visit a bank branch for non-cash withdrawal and deposit transactions. To use a telephone banking facility, a customer must first register with the institution for the service, and set up some password for customer verification. The password for telephone banking is normally not the same as for online banking. In banks now routinely allocate customer numbers, whether or not customers intend to access their telephone or online banking facility. Customer numbers are normally not the same as account numbers, because a number of accounts can be linked to the one customer number. The customer will link to the customer number any of those accounts which the customer controls, which may be cheque, savings, loan, credit card and other accounts. To access telephone banking, the customer would call the special phone number set up by the bank, and enter on the keypad the customer number and password. Some banks have set up additional security steps for access, but there is no consistency to the approach adopted. Most telephone banking services use an automated phone answering system with phone keypad response or voice recognition capability. To ensure security, the customer must first authenticate through a numeric or verbal password or through security questions asked by a live representative.

The types of banks which a customer may transact through telephone banking include obtaining account balances and list of latest transactions, electronic bill payments, and funds1

transfers between a customer's or another's accounts. Cash withdrawals and deposits require the customer to visit an automated teller machine or bank branch. Telephone banking is a service provided by a financial institution that enables customers of the financial institution to perform financial transactions over the telephone, without the need to visit a bank branch or automated teller machine. Telephone banking times can be longer than branch opening times, and some financial institutions offer the service on a 24 hour basis. From the bank's point of view, telephone banking reduces the cost of handling transactions by reducing the need for customers to visit a bank branch for non-cash withdrawal and deposit transactions. To use a financial institution's telephone banking facility, a customer must first register with the institution for the service, and set up some password (under various names) for customer verification. The password for telephone banking is normally not the same as for online banking. Financial institutions now routinely allocate customer numbers (also under various names), whether or not customers intend to access their telephone or online banking facility. Customer numbers are normally not the same as account numbers, because a number of accounts can be linked to the one customer number. The customer will link to the customer number any of those accounts which the customer controls, which may be cheque, savings, loan, credit card and other accounts. Some financial institutions have restrictions on which accounts may be access via telephone banking. To access telephone banking, the customer would call the special phone number set up by the financial institution, and enter on the keypad the customer number and password. Some financial institutions have set up additional security steps for access, but there is no consistency to the approach adopted. Most telephone banking services use an automated phone answering system with phone keypad response or voice recognition capability. To ensure security, the customer must first authenticate through a numeric or verbal password or through security questions asked by a live representative. The types of financial transactions which a customer may transact through telephone banking include obtaining account balances and list of latest transactions, electronic bill payments, and funds transfers between a customer's or another's accounts. Cash withdrawals and deposits requires the customer to visit an automated teller machine or bank branch.2

A customer may not be able to use telephone banking on particular bank accounts with a financial institution, such as loan accounts, but bank rules vary in this respect. The process involves using the keypad on a touch-tone telephone to perform a variety of banking functions. Along with traditional banks, phone banking is also utilized extensively by online banking institutions, including banks that conduct business primarily with the use of telephone technology. The concept of telephone banking has been around for several decades. Initially, the process required manual intervention by a bank employee. Customers would call into the bank, answer questions to verify their identities, and submit queries to the service representative. While somewhat labor intensive, this approach did make it possible to conduct a number of banking transactions from the comfort of home. With the advent of touch-tone services, the idea of telephone banking took on a new direction. Instead of connected with a live bank representative, customers could use the keypad on a touch-tone phone to enter an automated system and obtain information on bank accounts as of the latest posting day. One advantage of this newer approach is that bank customers could call any time of the day or night and check the status of their accounts. As technology continued to progress, the scope of functions that could be performed with the automated system expanded, making the service even more valuable to customers. Tele banking system is and interactive voice Response (IVR) application which uses a telephone to access information from a database. It is an easy to use, cost effective and innovative solution designed to meet user needs for electronic banking application. It provides communication between information in IVRS system and off-site telephone caller/customer.

There are several ways that a telephone banking service may be configured. Some function off a validation process that includes voice recognition before access to the customer accounts is granted. Other systems make use of login credentials such as user names and passcodes that must be entered using the telephone keypad. Once the customers enters the

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correct data, the automated system makes it possible to perform a wide range of functions in relation to the accounts connected with the login credentials. The typical bank telephone customer can access his or her accounts to perform a variety of functions. Balances can be checked and the latest activity can be reviewed. The customer can also transfer funds between accounts using telephone banking, as well as order more checks, make loan payments, or request information on other services the bank offers. In addition to use by traditional banks, telephone banking is also utilized by virtual banks that rely heavily on telephone and Internet access to process transactions and provide information to customers. Telephone banks generally function primarily by establishing access credentials that can be used on any telephone with touch-tone service. In addition, the transactions or queries can be conducted around the clock, an advantage that allows the telephone bank to seek clients in any area of the world where the bank is authorized to conduct business. While online banking access has become very popular today, most banking institutions continue to offer telephone banking services at no charge to their customers.

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Overview of StudyWith Telebanking you can manage your account from the comfort of your home, from your office or from another location anywhere in the world. We are available from 7 a.m. to 10 p.m. daily. Telephone banking offers you: broad functionality for domestic and foreign payment operations with the possibility to save templates for repeat payments topping up of prepaid SIM cards (T-Mobile, Telefnica O2, Vodafone) establishing, changing and cancelling of term deposits; sending of SMS and email reports e.g.on balances and transactions summary of accounts and balances and history of transactions summary of debit and credit cards summary and history of securities transactions Benefits of Telebanking lower-cost and more effective service for your account wide range of banking services make payments with the assistance of a telephone banker

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History of ATM & Telebanking 1972 1980 (July) 14 Bankettes were installed in Toronto. (May) Royal Bank rolled out its automated banking machine network nationally with the

installation of its first Personal Touch Banking machine in Calgary. 1985 (November) Royal Bank's automated banking machine network was officially linked

with the Plus System Network, one of the largest shared automated banking machine networks in the United States. Royal Bank was Plus System Inc.'s first international partner. 1985 The Personal Touch Banking machine network increased to 900 machines, each

processing an average of 10,000 transactions per month. Consumer acceptance of banking machines surpassed the bank's most optimistic expectations. 1985 Royal Bank became a founding member of Interac, the shared banking machine network

in Canada that offered customers convenient access to their money at any participating financial institution's automated banking machine. 1986 (August) Royal Bank introduced two new types of specialized banking machines in

Ontario: the Passbook Account Updater, allowing