Q:

How are computers used in banking?

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Quick Answer

Modern banks use computers for storing financial information and processing transactions. Tellers and other employees also use them to log information. Customers often use computers for online banking.

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How are computers used in banking?
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Full Answer

Computers have revolutionized accounting and bookkeeping, and banks were some of the first to switch to computers. Processing transactions manually takes a considerable amount of time, and even expensive computers allowed banks to save money on labor costs. These systems are also great at avoiding mistakes.

Banking tellers also use computers to access customer data quickly. Instead of having to find a file for every customer who enters, tellers can simple type in the customer's name and bring up relevant data instantly. These systems can also process many transactions when the customer is present, so tellers can give customers receipts reflectng deposits and withdrawals.

Online banking has become more popular over the years, and people do not have to go to the bank as often as they once did. Some banks even operate exclusively online by providing online banking functionality and phone support when needed. These banks have lower operating costs, and many are able to provide lower fees for their customers. Credit card companies and other financial institutes have followed suit and allow customers to access information and process transactions online.

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