DEPARTMENT OF TECHNICAL EDUCATION

ANDHRA PRADESH
Name : Raja Sekhar Koduru
Designation : Lecturer In CCP
Branch : Commercial & Computer Practice
Institute : Govt. Polytechnic For Women,
Kakinada, E.G. District
Year/Semester : 3rd Year – VI Semester
Subject : Banking II
Subejct Coce : Ccp-604(B)
Topic : Customer Services Offered By Bank
Duration : 50 Mts.
Sub Topic : Internet Banking Facilities – Tele Banking
Teaching Aids : Power Point & Pictures
CCP604(B).28 1
Recap

 In the previous session we have learnt about

Internet Banking

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Objectives:

On completion of this topic you will be able to

 Define Telephone Banking.

 List the Services of Telephone banking

 List the Advantages of Telephone banking

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Structure

 Known to Unknown
 Telephone Banking -Features
 Telephone Banking -Benefits
 Telephone Banking -Facilities
 Telephone Banking system
 Telephone Banking –draw backs
 Summary
 Quiz
 Assignment
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Known to Unknown

 Do you know that we can do Banking

business through Telephone ?

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Telephone Banking
Meaning:
 Where banking and financial services are
delivered to the customer of a bank through
the medium of telephone, it is called
‘telephone banking’.

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Telephone Banking
Meaning:
 Telephone banking services makes use of
an Automated Voice Response (AVR)
system.
 It enables customer to transact their
banking business from their homes rather
than in the bank’s physical branches.

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Telephone Banking
Definition:
 A secure, fast and convenient way to obtain a range
of services by using a telephone without visiting the
branch.
 Information on account,
 Conduct of selected transactions,
 Report loss of ATM card,
 Order a cheque book, draft etc.
 is known as ‘TELEPHONE BANKING’

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Telephone Banking - Features

Eligibility:
 Telephone banking services can be
availed by any individual customer of the
branch, which is offering this facility….
 ….on application subject to the Branch
Manager’s discretion
 Joint account with joint signatures and
whose accounts are not running
satisfactorily are exempted to avail this
facility
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Telephone Banking - Features

Eligibility:
 Even a minor who is allowed to open
and operate account can seek to avail
this facility
 This facility is available for all customers
having savings/current accounts in their
individual capacity at the branches
offering this facility

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Telephone Banking - Features

Application:
 The customer is required to apply for the facility in
the application form prescribed for the purpose
 After scrutiny, the branch will register the name
and allot the PIN and transaction password
 The customer can change his PIN.
 This facility is available in selected fully
computerized branches
 The service is provided ‘free of charge’

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Telephone Banking - Features

Realtime service:
 The Information/transactions through telephone
banking are not exactly but almost ‘Real Time’
(immediate)
 If the bank gets the instruction to mail the
cheque book, it will be couriered only at the
address registered with the bank

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Telephone Banking - Benefits

 It is increasingly accepted as one of the most

modern banking services
 It is a high level of acceptability especially
among the professional people for whom the
use of a telephone as a communication
medium
 Even they need not go to either a bank branch
or ATM to avail telephone banking features

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Telephone Banking - Benefits
 The customer can access information to his
account and do a few transactions without visiting
the branch even when he is out of station, that too
around the clock
 Thus the facility carries with itself the advantage of
convenience, economy and efficient time
management
 The entire mechanism of telephone banking is
illustrated in the next exhibit

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 customer

Making a query

Sending a digitized data message

AVR and/or Human Response

Bank
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Telephone Banking - Facilities

 Telephone banking makes available the

following typical range of facilities and
services to the customers:
 Balance enquiry
 Statement ordering
 Cheque book request facility
 Funds transfer (i.e. payment) to third
parties (e.g. payment utility bills)

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Telephone Banking - Facilities
 Funds transfer between different accounts held
by the customer at the bank.
 For security reasons these accounts are usually
‘linked’ by the customer in advance by a visit to
the branch.
 General account queries and advice – usually
done by a human operator even the system
used automated AVR technology.

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Telephone Banking - Facilities
 Ordering traveler’s cheques from the
bank - these typically being available for
collection from a physical branch or else
supplied to the customer by registered
post
 Loan payments
 Loan application
 Obtaining product information

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Telephone Banking - Facilities

 Placing stopped payment (on cheques)

 Requesting copies of cleared cheques

 Reordering cheques

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Telephone Banking System
 A range of telephone banking system is
delivered with the help of the following
types of banking system
 Automated Voice Response (AVR)/
 Interactive Voice Response System (IVRS)
 Human Operators
 Personal Computer

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Telephone Banking System

 Automated Voice Response

(AVR)/Interactive Voice Response System
(IVRS)
 According to the AVR/IVRS technology, a
customer uses the telephone to send
‘digitized data messages’ to the system in
order to activate a particular service
 The customer is then ‘prompted’ by the
service to provide one or more type of
instructions
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Telephone Banking System

 Sometimes, the technology also

requires the customer to say one or a
number of particular words down the
telephone
 The system contains software, which
recognizes the word
 The system works on a similar
principle to those using tone
commands
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Telephone Banking System

Human Operators:
 According to the telephone banking system
run though the use of human operators,
there will be no AVR at all
 As a matter of fact, even the AVR system
uses human operators for routine
transactions

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Telephone Banking - System
Personal Computer:
 Under this system, telephone banking services are
PC based wherein a personal computer is used for
interfacing with the system via a data
communications process delivered by the telephone
 For this purpose, the customer’s standard desktop
PC is used
 Further, a special dedicated terminal is typically
supplied, free of cost to the customer or leased to
the customer by the bank for a nominal charge

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Telephone Banking - Drawbacks

 Despite many advantages claimed by

telephone banking, it is fraught with a
number of drawbacks as detailed below
 Causing disturbance to the normal course of
work of the employer’s office in which the
customer works
 It would be illegal for a customer to make a
telephonic call from the office

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Telephone Banking - Drawbacks

Loss of privacy
 There is always a fear of the conversation
with the bank being overheard or interrupted
 Frustrating PIN
 Telephone Banking requires lengthy PIN as
an identification of the customer. Keying in
of the authentication code follows this.
Remembering the lengthy PIN is difficult

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Telephone Banking - Drawbacks
Too mechanical –
 Telephone banking has become too
mechanical in that it makes use of
AVR/IVR system
 Human tendency is that not so many
customers tend to involve themselves with
such a process
 Further, it calls for absolute memory of
one’s personal PIN
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Telephone Banking - Drawbacks

Customer Reluctance:
 The customer needs to share his or
her personal information to the human
operators for some time.
 This may dissuade the customer from
making active use of the phone
banking services

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Telephone Banking - Drawbacks

Cost Factor:
 Generally, banks that offer telephone
banking service provide the user the
advantage of toll-free telephone
number
 This would actually cost the banker
 In fact, most banks happily subsidize
much of the cost of making a call to
the telephone banking system
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Summary
Just making by a telephone call the
customer can avail some of banking
transactions
 Even he need not go outside from his
office or home to do this job
 Some of the banks offers this facility on
toll free telephone

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Frequently Asked Questions

1. List out the services of Telephone

Banking (4marks)
2. List the draw back of Telephone
Banking (4 marks)
3. What are the advantages
Telephone Banking

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