Tele Banking

Group members:

● Lori-Anne Erskine
● Kashish Hyde
● Ramona Scott *
● Bethany Evans *

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 TABLE OF CONTENTS

WHAT IS TELE-BANKING? …………………………………………………………………… pg 1

HISTORY OF TELE-BANKING ……………………………………………………………….. pg 2

HOW TO USE TELE-BANKING ……………………………………………………………….. pg 3

ADVANTAGES OF TELE-BANKING ………………………………………………………….. pg 4

DISADVANTAGES OF TELE-BANKING …………………………………………………….. pg 5

FEATURES OF TELE-BANKING ………………………………………………………………… pg 6

TELE-BANKING SCAMS & STEPS TO SAFEGUARD

TELE-BANKING ……………………………………………………………………………………. pg 7

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 WHAT IS TELE BANKING?

-Tele Banking also known as Telephone Banking is a service

provided by a bank or other financial institutions that helps
customers to perform financial transactions over the
telephone and this doesn’t involve cash or financial
instruments or the need to visit a bank or ATM.

-This service is available 24/7 in

many cases, using either an
automated system or speaking with a
bank representative. It is convenient
for those who don’t have internet
access or prefer handling their
finances over the phone.

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 HISTORY OF TELE-BANKING

-Telephone Banking became available in the 1980s and was

first introduced by Girobank in the United Kingdom, which
established a dedicated telephone banking service in 1984.

-Telephone Banking saw growth during the 1980s and early

1990s, it was heavily used by the first generation of direct
banks. However, the development of online banking in the
early 2000s started a long-term decline in the use of telephone
banking. In the early 2000s started a
longterm decline in the use of
tele-banking in favour of internet
banking. The arrival of mobile banking
further degraded the use of telephone
banking in the 2010s.

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 HOW TO USE TELEBANKING

-To use a financial institution’s telephone banking facility, a

customer must first register with the institution for the
service. They would then assign you to a customer number
(which would not be the same as the account number) and you
may be given or have the chance to create your own password
(under various names) for customer verification.

-Then, customers would call the

special phone number created by the
bank and then verify their identity
through the customer number, a
numeric or verbal password, or
security questions asked by a live
representative. The service can be
provided using an automated system, using voice recognition
capability, DTMF technology, or by live customer service
representatives.

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 ADVANTAGES OF TELEPHONE
BANKING

● Telephone banking is considered convenient because you

can pay your bills on time and do not have to go to the
utility company, you can even perform various
transactions from the comfort of your home.
● It saves time as it eliminates waiting in line at the utility
company.
● It is safer because you don't have to walk around with
cash to pay your utility bills. It helps to avoid being at a
risk of being robbed.
● It is cheaper since the transaction cost is lesser than the
transportation cost to and from the utility company. It's
easier to save.
● You can constantly track your account and check account
balances from anywhere, at anytime.
● It provides direct one-on-one support.
● You’ll be provided with personalised answers for your
questions.
● It helps to navigate confusing transactions details.

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DISADVANTAGES OF TELEPHONE
BANKING

● First time users may find the system slightly difficult to

use especially elderly people who are not familiar with
technology.
● Instead of a receipt you will receive a transaction
reference number as proof that the payment was made.
(this is because the reference number would lack
detailed information that a receipt would provide).
● Funding an account requires you to visit the branch of
the financial institution you are paired with.
● Not securing your account with a strong password can
leave it vulnerable to internet fraud.
● Challenges may occur where there is difficulty
navigating systems.
● Delayed support depending on availability (this may
cause frustration for customers who need help with
urgent issues).
● Weaker security than online and in-person banking (this
increases the risk of fraud or identity theft).

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 FEATURES OF TELEPHONE
BANKING

● Customers can check their account balances, recent

transactions and statements.
● People can transfer money between accounts within the
same bank or other banks.
● Some tele-banking services allow users to pay bills or
credit card payments.
● Customers can get information about loans, credit cards
and repayments can also be accessed.
● Customers may request stop payments on checks, report
lost or stolen cards, or change PINs.

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COMMON TELEBANKING SCAMS

● Scammers may imitate bank representatives to steal

personal information, like PINs, or account
numbers. Always be cautious and verify the
authenticity of calls from your banks.

● Fraudsters may use social engineering tactics to

gain trust and manipulate users into revealing
confidential data.

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 STEPS TO SAFEGUARD
TELEBANKING TRANSACTIONS

1. Avoid using public or shared phones for telebanking,

ensure to use a secure line.
2. Your bank will never ask for your PIN or full passwords,
NEVER SHARE YOUR PERSONAL DETAILS.
3. Practise regular monitoring, frequently check your
account statements to try and spot any unauthorised
transactions.
4. If you suspect any suspicious activity immediately notify
the bank of any unusual calls or transactions.