Please enable JavaScript.
Coggle requires JavaScript to display documents.
6.6 Banking Applications - Coggle Diagram
6.6 Banking Applications
Automatic Teller Machines (ATMs)
Characteristics
Computerized terminals linked to a bank’s central database.
Accessible 24/7 using an ATM card and PIN.
Allow customers to perform basic banking transactions without a teller.
Connected to secure networks enabling real-time updates to accounts.
Uses
Withdraw cash instantly.
Deposit cash or cheques (some machines accept envelope or cardless deposits).
Check account balance.
Print mini-statements (recent transactions).
Transfer money between linked accounts.
Pay bills (e.g. electricity, water, airtime).
Advantages
Available 24 hours a day, 7 days a week.
Reduces queues inside the bank.
Convenient and fast access to banking services.
Can be used nationwide or internationally.
Reduces workload on bank staff.
Disadvantages
Security risks (e.g. card skimming, stolen PINs).
Machines can malfunction or run out of cash.
Limited services compared to full bank branches.
Service fees may apply for withdrawals from other banks.
Electronic Funds Transfer (EFT)
Characteristics
Movement of money electronically between bank accounts.
Occurs in real time or within hours (no physical cash or cheques).
Uses secure computer networks to process transactions.
Uses
Payroll deposits (salary payments).
Utility bill payments (automatic debit).
Online shopping and merchant payments.
Inter-bank transfers (between different banks).
Advantages
Fast and efficient — money transferred instantly or same day.
Reduced human error (no manual processing).
Secure and traceable — electronic records available.
Lower cost for banks and customers.
Disadvantages
System failures may delay transactions.
Cybersecurity risks (hacking, phishing).
Requires internet or network access.
Mistaken transfers may be difficult to reverse.
Credit / Debit Card Transactions
Characteristics
Plastic cards with magnetic stripes or chips.
Linked to bank accounts (debit) or credit limits (credit).
Used for in-store and online purchases.
Verified via PIN, signature, or contactless/NFC.
Advantages
Convenient — no need for cash.
Can be used worldwide.
Electronic records simplify expense tracking.
Credit cards allow delayed payment.
Disadvantages
Risk of fraud or card theft.
Interest charges on unpaid credit card balances.
May encourage overspending.
Requires secure verification systems (e.g. chip and PIN).
Cheque
Charcteristics
Require manual processing and signature verification.
Paper documents instructing a bank to pay a stated amount to a person or organization.
Advantages
Secure method of large payments (no need to carry cash).
Can be post-dated or cancelled if necessary.
Provides a written record of payment.
Disadvantages
Slow clearing process (2–5 days).
Can be forged or bounced (insufficient funds).
Becoming less common due to electronic alternatives.
Internet Banking
Characteristics
Access to bank accounts via the internet using secure login.
Uses HTTPS encryption for security.
Available via web browsers or mobile apps.
Uses
Check balances and recent transactions.
Pay bills or make transfers.
Apply for loans or cards online.
Manage savings and standing orders.
Advantages
24/7 access from anywhere with internet.
Instant transfers and bill payments.
Paperless — reduces environmental impact.
Provides detailed transaction history.
Disadvantages
Requires internet access and device.
Cybersecurity risks (phishing, hacking).
Some users find it complex or less personal.
Can’t handle cash transactions directly.