Importance/Uses of Computer in Banks

The uses of computer in banks and financial institutions have more importance in maintaining customer’s accounts, ledger, electronic fund transfer, and processing cheques, credit cards, and the major transactions that take place daily.

Computers are used in banks for various reasons. They help bank staff to work more efficiently and effectively. Computers also monitor certain transactions and help process other customer information. Without computers, it would be very difficult for a bank to provide good customer service on a daily basis. Computers help the bank save time and money, and can be used to help generate profits.


Importance/Uses of Computer in Banks:

The uses of computers in banks are gradually increasing. Some of the main importance and uses are highlighted as under.

Customer Information:

The importance/uses of computer in banks are to monitor customer information such as name, address, phone number, date of birth, social security number, and place of work. This information is used to stay in contact with customers and notify them of any changes in bank policy. A customer’s address is required to send them statements on a monthly basis. A customer’s account number is also stored on the computer, which provides the employee with the ability to access customer information efficiently.


The number of products and services a customer has is also stored on computers. Banking staff will periodically call clients’ homes to offer them a product or service, such as a second mortgage line of credit. It helps to know what products a customer already has before offering new products. Without the use of computers, it would be difficult to control this information.

Reports and Benefits:

The importance/uses of computer in Banks is to analyze balance aging reports and monitor customers who have had checks returned due to insufficient funds. This report can be used by sales reps to call those customers and offer them a product called Overdraft Protection, which prevents a customer from exposing their account. Computers help bank staff to generate income by locating specific customers for sales activities.

Transactions and Goals:

Computers help tellers keep track of all transactions for the day. When customers make deposits and withdrawals, check amounts of cash, open checking accounts or mortgage loan applications, computer stores, and control all the information when the teller or bank employee enters it into the system. After tabulating all the information, a branch manager can print the report at the end of the day to see if the branch has met its objectives and goals. Branches have goals for loans and new accounts.

Credit Applications:

A bank can use computers for new credit applications and credit card applications, Cheque Systems verification, and opening new accounts such as checking, savings, or certificate of deposit accounts.


Computers can also use to monitor clients who do not pay their loans or credit cards. It can generate separate reports for customers who have not paid their accounts in 30, 60, and 90 days. When a 30-day default report is generated, a collections representative can contact the customer to resolve it, helping to keep defaults under control.


Computers can keep a record of all communications that a bank employee may have with a bank customer including collection activities. A bank can also use a computer to see what safe deposit boxes are available and can keep track of customers who have safe deposit boxes.

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