WEL COME To

Group Project Presentation on

MODERN TECHNOLOGY IN RETAIL BANKING -

ATM
Submitted By C. Dayakar M. Veerendher K. Raj Kumar B.V.Bramarambika G.Linganna J. Nagaraju

Introduction
Automated Teller Machine (ATM) enables the clients of bank to have access to their account with out going to bank. An ATM allows the customers to perform banking transactions any where and any time with the need of human teller. By using a Debit card or ATM card at the ATM center individuals can with draw cash from their accounts or make a deposits or transfer money from one account to another account or perform another functions.

Working of ATM First the client will insert he is card in the ATM and then ATM will ask for a Personal Identification Number (PIN), Once the correct pin is given the ATM will ask for the money to be with drawn. If the amount is available and the client has enough money on his credit then the money will paid. Once the money is offered to be client, a count down is started , if this time out is over the money will be collected back by the ATM and the transaction will be rolled back. The ATM will communicate each transaction to the data base and obtain verification that it was allowed by the database. If the database determines that the PIN is invalid, the customer will be required to reenter the PIN before the transaction can proceed.

If the transaction fails for any reason other than in valid PIN, the ATM will display an explanation of the problem and will ask the customer whether he want to do another transaction. The ATM will provide the customer with printed receipt for each successful transaction showing the date, time, machine location, type of transaction, amount and available balance of the affected account

The idea of self service in retail banking developed through independent and simultaneous efforts in Japan, UK and US.
In the case of ATM Don Weizel invented the first successful and modern ATM in the USA, However he was not first inventor to create an ATM. In 1939 Lother Simjian started patenting an earlier and not so successful version of ATM.

History of ATM

Don Weizel is the chief conceptualist of ATM an idea he thought while he was waiting in the long Queue line at the Dall as Bank. It took 5 million Dollars to develop an ATM. The concept of modern ATM began in 1968.

Objectives of Study

To present the extent of usage of ATM services by the customers. To identify the problems faced by the customers using the ATM. To know the satisfaction level of customers about ATM services.

METHODOLOGY
Sources of Data Primary data : Questionnaires

Secondary data : Articles in the journal Magazines RBI Websites Sample size: 65 Respondents Analysis of Data Statistical tools like Averages, Percentages are used to analyze the data.

Limitations of Study

The study is confined to few select Customers of Various banks. As study is based on information given by respondents the accuracy of results depends on their promptness and ability to recollect. The study is restricted to usage of ATMs. The study not covered entire city.

ATM Hardware
An ATM is typically made up of the following devices: CPU (to control the user interface and transaction devices) Magnetic and/or Chip card reader (to identify the customer) PIN Pad (similar in layout to a Touch tone or Calculator keypad), often manufactured as part of a secure enclosure. Secure cryptoprocessor, generally within a secure enclosure. Display (used by the customer for performing the transaction) Function key buttons (usually close to the display) or a Touchscreen (used to select the various aspects of the transaction) Record Printer (to provide the customer with a record of their transaction) Vault (to store the parts of the machinery requiring restricted access) Housing (for aesthetics and to attach signage to)

Mechanisms found inside the vault may include:

Dispensing mechanism (to provide cash or other items of value) Deposit mechanism including a Cheque Processing Module and Bulk Note Acceptor (to allow the customer to make deposits) Security sensors (Magnetic, Thermal, Seismic, gas) Locks: (to ensure controlled access to the contents of the vault) Journaling systems; many are electronic (a sealed flash memory device based on proprietary standards) or a solid-state device (an actual printer) which accrues all records of activity including access timestamps, number of bills dispensed, etc. This is considered sensitive data and is secured in similar fashion to the cash as it is a similar liability.

ATM Software
A Suncorp Metway ATM running OS/2 With the migration to commodity PC hardware, standard commercial "off-theshelf" operating systems and programming environments can be used inside of ATMs. Typical platforms previously used in ATM development include RMX or OS/2. Today the vast majority of ATMs worldwide use a Microsoft OS, primarily Windows XP Professional or Windows XP Embedded. A small number of deployments may still be running older versions such as Windows NT, Windows CE or Windows 2000. Notably, Vista was not widely adopted in ATMs. A Wincor Nixdorf ATM running Windows 2000

How Do ATMs Work?

An ATM is simply a data terminal with two input and four output devices. Like any other data terminal, the ATM has to connect to, and communicate through, a host processor. The host processor is analogous to an Internet service provider (ISP) in that it is the gateway through which all the various ATM networks become available to the cardholder (the person wanting the cash). Most host processors can support either leased-line or dial-up machines. Leased-line machines connect directly to the host processor through a fourwire, point-to-point, dedicated telephone line. Dial-up ATMs connect to the host processor through a normal phone line using a modem and a toll-free number, or through an Internet service provider using a local access number dialed by modem.

ATM has four output devices:

Display screen - The display screen prompts the cardholder through each step of the transaction process. Leased-line machines commonly use a monochrome or color CRT (cathode ray tube) display. Dial-up machines commonly use a monochrome or color LCD. Speaker - The speaker provides the cardholder with auditory feedback when a key is pressed. Receipt printer - The receipt printer provides the cardholder with a paper receipt of the transaction.

Cash dispenser - The heart of an ATM is the safe and cash-dispensing mechanism. The entire bottom portion of most small ATMs is a safe that contains the cash

ATM Security and Tips to follow ATMs keep your personal identification number (PIN) and other information safe by using encryption software such as Triple DES (Data Encryption Standard). But there are lots of things that you can do to protect your information and your money at an ATM. Many banks recommend that you select your own PIN. The following are some of the tips to follow:
Don't write down your PIN. If you must write it down, do not store it in your wallet or purse. Make your PIN a series of letters or numbers that you can easily remember, but that cannot easily be associated with you personally. Avoid using birth dates, initials, house numbers or your phone number.

Store your ATM card in your purse or wallet, in an area where it won't get scratched or bent. Get your card out BEFORE you approach the ATM. You'll be more vulnerable to attack if you're standing in front of the ATM, fumbling through your wallet for your card. Stand directly in front of the ATM keypad when typing in your PIN. This prevents anyone waiting to use the machine from seeing your personal information. After your transaction, take your receipt, card and money away. Do not stand in front of the machine and count your money. If you are using a drive-up ATM, get your vehicle as close to the machine as possible to prevent anyone from coming up to your window. Also make sure that your doors are locked before you drive up to the machine.

If someone or something makes you uncomfortable, cancel your transaction and leave the machine immediately. Follow up with your bank to make sure the transaction was cancelled and alert the bank to any suspicious people.

For safety reasons, ATM users should seek out a machine that is located in a well-lighted public place. The entry of your four-digit personal identification number (PIN) on the keypad should still be obscured from observation, which can be done by positioning your hand and body in such a way that the PIN entry cannot be recorded by store cameras or store employees.

Fraud Attempts
There have also been a number of incidents of fraud by Manin-the-middle attacks, where criminals have attached fake keypads or card readers to existing machines. These have then been used to record customers' PINs and bank card information in order to gain unauthorized access to their accounts. For a low-tech form of fraud, the easiest is to simply steal a customer's card. A later variant of this approach is to trap the card inside of the ATM's card reader with a device often referred to as a Lebanese loop. When the customer gets frustrated by not getting the card back and walks away from the machine, the criminal is able to remove the card and withdraw cash from the customer's account. Another simple form of fraud involves attempting to get the customer's bank to issue a new card and stealing it from their mail.

ATM ADVANTAGES and DISADVANTAGES

If you have ever faced an unexpected need for cash, then you have probably accessed an ATM machine. These machines are found in many retail locations from gas stations to restaurants to grocery stores. Are there any advantages to using an ATM, or would you be better off carrying your own cash to make your purchases?

The main advantage of using an ATM is the fact that you can have access to the cash in your bank account whenever you need it. If, for instance, you are at a store that does not take checks or credit cards but it has an ATM, you can withdraw the money for your purchase. This also means you can travel anywhere without cash. If the location has an ATM and you have your ATM card, you can access your money instantly.

Advantages
1. 2. 3. 4. 5. 6. 7. ATM provides 24 hours service ATM gives convenience to bank customers ATM reduces the workload of bank staff ATM is beneficial to travelers ATM provides services without any error ATM may give customers new currency notes ATM provides privacy in banking transactions

Disadvantages
1. Not available in remote areas 2. Can not avoid illegal use in case of stolen card 3. If some one watches or hacks an ATM Mechiine your details may be taken

Alternative uses
ATMs include many functions which are not directly related to the management of one's own bank account, such as: Deposit currency recognition, acceptance, and recycling Paying routine bills, fees, and taxes (utilities, phone bills, social security, legal fees, taxes, etc.) Printing bank statements Updating passbooks Loading monetary value into stored value cards Purchasing Postage stamps. Lottery tickets Train tickets Concert tickets Movie tickets Shopping mall gift certificates.

USAGE OF ATUTOMATIC TELLER MACHINE Education Qualification

Profession
Name of the Bank Period of Holding Frequency of usage Nature of Usage

PIN number
Effect of usage Complaints Overall Satisfaction

Education Qualification
Education Qualification
Graduates and above Up to Intermediate Literate

Number of customers
36 28 0

Percentage

55 43 0

Illeterate
TOTAL:

1
65

2
100

Profession

PROFESSION Business Employee Student HouseWife

No of customers 17 24 10 2

Percentage 25 38 15 03

Others
Total

12
65

18
100

Name of the Bank

Name of the bank
SBI SBH ANDRABANK ICICI AXIS BANK Total

No. of customers
22 20 17 4 2

Percentage

34

31
26 06

03
100

65

Period of Holding
PERIOD OF HOLDING
Just taken(3 months) 3 to 1 year 1 to 3 years Above 3 years Total

No. of customers
1 8 11 45

%
2 12 17 69 100

65

Frequency of usage

Frequency of usage
Every day Once in a Week

No. of customers 10
15 26 14

Once in month
Very rarely Total

65

Nature of Usage

NATURE OF USAGE
For withdrawal

No of customers 62

%
95

for Balance enquiry

For mini statement For cash Deposits Any other transation Total

2
0 1 0 65

3
0 2 0 100

PIN number

PINNUMBER Record in a book

No of customers 18

% 28

Reveal to family members

Reveal to friends Just remember Change frequently Total

5
1 34 7 65

08
02 51 11 100

Effect of usage
No. of customers 33

EFFECT OF USAGE Saves Time

% 51

Instant withdrawal
Avoid s to visit bank withdrawals any where Total

15
13 4 65

23
20 06 100

Complaints
COMPLAINTS Out of order very frequently No of customers 32 12 5 16 65 % 49 18 08 25 100

Unable to Process frequently

Charged heavily Other bank ATMs do not respond Total

Overall Satisfaction
No. of customers 33 2

Overall satisfaction
Convenient for cash withdrawal Convenient for Balance Enquiry Avoids risk of carrying cash Helps for sudden shopping

% 51 03

22
8

34
12

Total

65

100

SUMMARY AND CONCLUSIONS

The analysis of the data collected reveals the following conclusions in respect of ATM customers and its usage 1. Literacy plays an important role in usage of ATM. Hence analysis is made on the basis of educational qualification of the customers. 2. Profession influences the usage of technology by the customers. Therefore an analysis of the profession composition of the ATM users is also made to draw a conclusion in this respect the table 2 indicates that majority of the card users are from employees class who use it for the purpose of drawing their salaries credited on line by the employer. Next in the order are business people who use for their regular receipts and payments. 3. The analysis reveals that majority i.e. 34% of the customers are from SBI and next in the order is that of SBH, total forming nearly 65% of the customers with State Bank group. So it appears that State Bank group is able to attract more customers towards usage of ATM cards.

4. Majority of the cardholders possess the cards since 3 years or more. As the town selected for study happens to be a district headquarter, awareness about ATM technology was in advance.
5. It indicates that nearly 40 per cent of the card holders use the facility once in a month. On the basis of the above it can be concluded that majority of them are salary holders who might be using it for drawing the salaries credited once in a month. 6. It indicates that most of the customers use it for withdrawal of cash. Hence it can be concluded that awareness about multiple uses of ATM card is yet to be achieved 7. Personal Identification Number (PIN) is the most important code to be used for transacting through ATM. It is such a number which should not be revealed and which should be periodically changed for the purpose of security. Hence an analysis is made through this study to know how the cardholder protect this number.

8. Majority of the customers expressed satisfaction with regard to

the saving of time as an usage of ATM. Instant availability during emergency requirements is the next utility of ATM as second rank goes to Instant withdrawal. 9. A very common and frequent complaint about ATM s by the customers is Out of Order and it occurs very frequently. Hence the authorities have to concentrate on making the ATMs work without such frequent interruption. 10. These figures reveal that ATMs are satisfactory in two respects, one of which is with regard to convenience in withdrawal of cash and the other is it avoids the risk of carrying cash in big amounts.