IT+in+Banks

__**BANKS**__ In banking there are two types of applications:

Front and back end.

The Front end is the user interface and usually runs on an operating system which is usually windows whereas some banks use linex.The front end captures the transaction and passes it to the back end for processing. The front end always has the validation and authentication steps in place when someone wants to use it. The front end can only be used for internal users or customers. (online banking, Phone banking or ATM). This all runs on a PC. In new architectural trends there is something called SOA. Service oriented architecture, where a third middle layer is introduced to orchestrate the interface between the front and the back end systems allowing reusability of common services.

The back end systems usually run on a mainframe or superservers to acomadate all high volume transactions with high processing power. Those systems are product processing systems which are specialized in the different fields of banking. It uses huge data bases which caries customer information and enterprise information. Those data bases uses high availability storage. Usually those back ends sit in the organization data center. They are backed up regulary and in most cases are replicated for redundandcy to be used incase of a disaster. Usually in back ends they use unix operating system with different flavours (HP unix, SUN SOLARIS unix, NCR unix) which is usually stable and robust and not subject to viruses and intrusions. The Middle tier which exists in some of the advanced banks serve as the catalyst between the front and back where all services (gross and granuler) are defined and made available for use in most of the transactions. This middle tier also includes the BPM (business process management) work flow and contains the MDM (master data management) and connects the front to the bank.

Network
Usually to connect the front to the middle to the back end systems there is the network layer which has LAN within the same prmeisis and WAN across the bank premiseses. Such network uses different switches and routers ranging from smart huge passports to small dummy hubs. In addition they use fire walls to protect the bank from external intrusion especially when the bank is exposed to the internet. Those fire walls sit between the web applications and the internet in the front as well as between the web applications and the back ends in an area called DMZ demilitarized zone. There is also load balancing network equipments which manages the smart distribution of transaction load over multiple servers.

ATM (automatic teller machines) are simply a PC connected to a mechanical device that dispenses cash or accepts cash. There are different types of ATMs from cash withdrawal to cash withdrawal and deposit CDM. Ultimately recycle ATMs. ATMs currently perform almost the same function as a normal branch including transactions which are not cash related.
 * __ [|How ATMs work] __

Phone banking is another front end used by the customers through the telephone. It has 2 parts. One is the IVR (interactive voice response) where the customer selects the service he requires from a menu tree by pressing numbers on the phone to effect his activity. The second part is call center where he/she is able to connect to an agent who can fulfill the transaction or capture the customer complaint. Predictive dialers is part of a third componanet where banks use to reach out their existing or potential customers; those systems are set to dial in customers at specific timing scheduled and connects them to either and IVR or an agent to perform the required activity. Phone banking combines 2 important technologies:

Computer and telephony which requires an important element clled CTI computer telephony integrated, it is a component which ties the data coming from the application to the telephone called coming from the PBX and make it available to the customer or the agent to fulfill the required transaction

EFT is the activity of transferring funds between different accounts within the same bank or between other banks domestically and internationally. Banks do those transfers through different technologies. Internal transfers with the same bank are done within FRONT MIDDLE BANK SYSTEMS TRANSACTION FLOWS. For transfers done with other banks there is usually a payment engine system and a wire room where external transfers are transferred into the required standard format for domestic or international RTGS gate ways. For example SWIFT. There is another way of effecting funds transfer away from RTGS standards and this is through B-to-B applications where funds transfer information are exchanged between the remeter bank and the beneficiary bank through agreed XML capital.

Is Online Banking Safe? media type="youtube" key="idZFgvMRN78" height="346" width="462" align="center"

Online banking in many peoples eyes might be the best solutions to many problems, however numerous other users feel that this will cause may drawbacks. This matter has many social and ethical issue. Social Issues: Ethical issues:
 * Faster communication between bank, other banks or customers.
 * Many customers would find the advancements in technology more helpful and makes their information safer and secure.
 * Banks can reduce costs by releasing employees because the technology takes some peoples places.
 * Jobs can be created, because both hardware and software must be created.
 * Some people may lose their jobs.
 * Many customers might think that the new online banking is not safe and secure.
 * Privacy: some people might think that their information ( phone#, address, username and password etc) is not safe. This information should not be shown to anyone.
 * Security: Banks should ensure that the money is physically secured and also virtually. By virtually, i mean, websites should be secure and also they should have hardware and software to protect information such as firewalls.
 * Reliability of the site, ATMs or anything used by people.
 * People and Machines: People who are not able to use any of the features will miss out on their advantages. Whereas some would use it and find it very useful.