What is Telebanking?
Telebanking expands to Telephone Banking. It is basically an automated facility, in which the customer can access account information and also perform various routine transactions using a keypad or touch-tone telephone without actually going to the bank branch or ATM, or accessing a mobile application/website.
It is the first technology-based banking service that initially used the classic telephone lines for the purpose of communication. Prior to the provision of the requested banking service information, the identity of the customer is verified.
Telebanking uses Interactive Voice Response (IVR) system to perform the banking transaction.
Initially, the service involves manual intervention by an executive, in which the customers make a call to the bank’s specified toll-free number through the landline or mobile device from anywhere.
Thereafter they need to follow the user-friendly menu and answer the questions to verify their identity and access the account, then the call is connected to the representative, to whom they submit their queries or requests, which is then processed accordingly.
Further, this facility is available 24/7 and it is mainly offered by banks, credit unions, and credit card companies. Also, for availing this service, nominal charges may apply and the charges vary from bank to bank.
Features of Telebanking
Telebanking is a 24-hour banking service, with the help of which customers can enquire about their account balances and transactions, with the help of a phone. The salient features of telebanking are:
- Multilingual facility (which supports multiple languages)
- Immediate call transfer to the branch representative
- A step towards anywhere banking
- 24 hours a day, 7 days a week facility
- Used in two modes – online or offline
Benefits of Telebanking
- Reduces the queue of the customers at the bank counters, for the customers seeking information related to the accounts.
- Medium to sell a range of banking products and services to its customers.
- Fast, safest, and convenient banking service, offered by the banks.
- Enables its customers to get instant feedback regarding their accounts while staying at their home or office.
- Reduces transaction handling cost.
- Receive information anytime and anywhere.
- Reduction in the workload of the bank staff.
- Informing customers about the new activities or special events of the bank.
- Mass market delivery mechanism of financial services.
Services Available with Telebanking
There is a range of services available with telebanking which are discussed here:
- Account Balance status: Access to real-time account balances for the various account linked with the same customer ID
- Last five transactions: Obtain details of the last five transactions of their account.
- Inquiry about cheque: Verify the status of the cheque issued or deposited.
- Renewal of term deposit: Instant and automatic renewal of term deposit.
- Order placement: Customer can place an order for issuance of the new cheque book, demand draft, etc.
- Account statement: Make a request for obtaining an account statement any time and anywhere.
- Stop payment: Stop payment of a cheque or series of cheques that are issued to someone.
- Fax of last 15 transactions: Obtain a mini statement of the last 15 transactions via fax
- Fund transfer: Transfer of money from one account to another within or outside the city
- Payment of Bills: Utility bills can be paid directly using this facility.
- Mobile number: Updating mobile number at your fingertips.
- Interest or exchange rates: Get information about the prevailing interest or exchange rates on deposits or loans
- Report loss of card: Make a request for blocking the ATM card, debit card, or credit card by reporting the loss of the card.
Sign Up Process of Telebanking
One can only avail this facility when he/she gives an application to the bank for the same by submitting a form and thereby registering with the bank branch where the account of the customer exists. Also, the facility is available to all the customers who have an account in the bank.
Thereafter a Customer ID, TPIN (Telephone Personal Identification Number), and FTPIN (Financial Personal Identification Number) will be allotted to the customer along with a kit.
To access the information related to the customer’s account, the customer needs to dial the local telebanking number. Once the pre-recorded message is complete, press the number of your choice from the menu. After that, he/she will be asked to enter the customer ID and the TPIN, which is nothing but a phone banking password. However, in case of transfer of funds, the customer will be asked to enter their FTPIN.
In this way, the customer can easily access their account and avail the services provided under the telebanking facility.
What is Interactive Voice Response (IVR) System?
An Interactive Voice Response System or IVR implies an automatic phone banking system, that facilitates the incoming callers through a voice response system that contains pre-recorded or digitized messages. For this purpose, the customer needs to enter an automated system using their telephone or mobile device
This system helps human beings to interact with computer-based technology with the use of voice or Dual-tone multi-frequency signaling (DTMF) tones.
To interact with callers and collect information from them, it provides a user-friendly menu without directly talking to a representative and the customer has to select the right option using their touch-tone keypad or speech recognition, to get their call directed transferred to the concerned department or specialist.
The service in which banking transactions performed by means of a telecommunication network is called Tele-banking. It aims at satisfying the customer’s needs as to the information of their accounts. Hence, this service helps the customers access their account and all the material information related to it, using a phone as a means.