Applications of ICT

Applications of ICT

1. Banking systems and money

   • Customers can: add new accounts
     • add/withdraw money to any of the accounts
       • pay bills by cheque
         • Ask for a bank statement
           • buy items online/in store using debit cards
   • Customer data stored on banks large database
   • send confirmation emails to customers after transaction
   • Main task is to keep data secure and make sure no fraud is performed
   • cheques
     • used by older people as they cannot remeber PINs
     • Banks threaten to stop using cheques as it is expensive for them
     • cheques has details such as
       • The date
         • Person/business being paid
           • the amount in words
             • amount in numbers
               • signature
   • Magnetic ink character recognition
     • 3 items encoded at bottom of every cheque
       • cheque no.
         • branch sort code
           • customer account number
     • ink is magnetized,read and inputted into the computer very quickly
     • advantages
       • large amount read quickly
       • doesnt matter if they are crumpled or dirty
       • characters are difficult to forge
       • disadvantages
         • expensive equipment
         • very limited no. characters can be used
   • Electronic funds transfer
     • credit card
       • money transferred from credit card company's account to shops account. customer than arranges payment with the credit card company
     • Debit card
       • money directly taken from cutomers bank account to shops account

2. Home banking

   • can carry out basic banking tasks from home such as:
     • view a statement of the account
       • transfer money between accounts
       • Bills can be paid
         • set up/alter direct debits
           • apply for loans/morgages
     • disadvantages
       • worried of security breaches
       • lack of personal touch
       • some banking services are not availble online

3. Cashless society

   • Less people carry money with them, instead they carry credit/debit cards
   • drugs no longer sold on the streets
   • no money theft
   • no bank robberies/shop keeper attacks

4. E-commerce

   • Buying good electronically
     • Large variety of goods available ready to be delivered to your door
       • Avoid tine/expense of travelling to stores
         • Businesses that work online don't need to pay for overheads
           • Businesses can expand their market easily
   • long delivery times
     • cannot physically inspect goods
       • worried about personal data security

5. Payroll

   • input database/timesheets containing employees details
     • calculated amount of money needed to pay the employee by the amount of hours they have worked (plus overtime)
       • outputs printed payslips or email the employee their payslip
         • updates amount of payments this year + total tax paid this year
           • Data sent to BACS system so money can be transferred to employees bank account
             • Reports are outputs summarising the companies pay for the period and update accounting system