Effect of Automated Teller Machines Samples †MyAssignmenthelp.com

Question: Discuss about the Effect of Automated Teller Machines. Answer: Introduction IoT can be described as interconnectivity of things such as digital devices, people, animals or objects that are uniquely identified and are able to send information/data over a computer network without having interactions such as person-to-person or even person-to-device (Barrett, 2016). High development rate of rising technology in the world has enabled IoT to gradually evolve in different aspects of life in the world today. The use of IoT has extended to various sectors such as health, agriculture, banking, education among others. The use of these applications brings about great benefits to the various sectors in life. These benefits majorly include; improved service delivery, reduced service delivery cost, reduced errors involved, increased production and services rates, among others (Patel, 2017). To understand more on the IoT, this document will try to explain it using an ATM system as used in banking sectors today. Problems before ATM system Before the emergence of ATM systems, banks used to experience long queues since customers used to access services from the human-tellers directly. This meant that more human labor cost was incurred by the Banks and also more time was needed to make one transaction, thus leading to fewer transactions. Also it without ATM it means customers can only transact during banks working hours. Solutions Provided by ATM With emergence of ATM machines as a result of internet development meant that most of the banks customer had only to use their cards to access their accounts and make any transactions of their choice. This therefore meant shorter queues and less labor cost while transactions increased. Also customers are able to transact at any time beyond banks operational time. Features of ATM An ATM system is a data terminal that consists of various input and output components. The input components consist of a card reader and a keypad while the output components include card slot, the speaker, screen, cash dispenser and receipt printer. Its functional features are withdraw, deposits, bill payments, print receipts and account update (Gui, 2015). An ATM system can be diagrammatically represented below. Figure 1 url: https://www.google.com/search?q=problems+addressed+by+ATMclient=firefox-betarls=org.mozilla:enUS:officialchannel=fflbsource=lnmstbm=ischsa=Xved=0ahUKEwjJ7fqdmbvVAhXhL8AKHeQTBN8Q_AUIDCgDbiw=1366bih=657#imgrc=bwZa51ANeQMd7M: How ATXM system works An ATM machine communicates to the bank via the internet. Customers insert their credit/debit card on the card slot then they are prompted to provide their PIN. Then ATM machine then communicates to the bank server in order to validate the information provided by the customers before any transaction is done. And in case where the information is not correct the customer will be notified via a display screen on the machine or audio via the speaker. If the credentials are correct the customer is allowed to proceed to choose a transaction of their choice and after the transaction one is given an option to print a receipt (Seksaria, 2016). Advantages of ATM Fast and easy banking services access. With ATMs in place customers are able to access their bank accounts and perform various transactions without having to walk into the bank at any time of the day. Reduced Cost and service delivery time. Saves the financial institutions quite a great deal of hiring bank personnels that could serve the great number of customers. Thus reducing cost both in terms of money and time (Adewoye, 2013). 24 hours Accessibility. ATM system allows customers to perform their transactions even when the time is out of bounds of the normal banking time. More Transactions. Banks experience more profit as a result of more transactions via ATM. Disadvantages of ATM system as an IoT According to (Ryan, 2015), ATM systems facilitate problems such as: Fraud - involve identity theft done via the internet. Fiscal planning problems - which mislead the customers since no banking statements are generated when transaction are done. Operational issues and banking fees that is costly. Conclusions In conclusion it is therefore evident from the example of the ATM system discussed above that Internet of Things has a great impact on the banking sector worldwide today even though it comes with few challenges. The use of internet to implement systems such ATM brings about new and more convenient ways of doing business in the world of financial sector. Thus IoT has a great impact in the world today and if implemented wisely across all aspects of life service delivery and production rates as well as life at large will be changed for good. References Adewoye, J. O. (2013). An Empirical Evaluation of the Effect of Automated Teller Machines Investment on Cost Efficiency of Banks in Nigeria. Asian Journal of Computer and Information Systems (ISSN: 2321 5658), 63-64. Barrett, D. J. (2016). Internet of Things (IoT). Illinois: Nimbus Centre for Embedded Systems Research at Cork Institute of Technology (CIT). Retrieved on https://www.google.com/search?q=Nimbus+Centre+for+Embedded+Systems+Research+at+Cork+Institute+of+Technology+%28CIT%29%5Cie=utf-8oe=utf-8client=firefox-b-ab#. Fasan. (2013). The Impact, Advantages of using Automatic Teller Machines in Nigerian Banking Sector. Biovolt Corporation. Gui, W. (2015, May 25). Technology. Retrieved March 3, 2017, from Slide Share: https://www.slideshare.net/weje855/atm-system-description-and Patel, K. (2017). Health and Medicine. Retrieved on 27th July 2017 https://www.ibm.com/blogs/internet-of-things/6-benefits-of-iot-for-healthcare/. Ryan, D. B. (2015). The Disadvantages of Automatic Teller Machines. University of Cincinnati and Indiana University: Retrieved on 27th July 2017 https://www.livestrong.com/article/23766-elliptical-vs.-exercise-bikes/. Seksaria, K. (2016). How do ATM machines work internally? Retrieved on 27th July 2017 https://www.quora.com/How-do-ATM-machines-work-internally.