Computers are used in banks mostly for processing cheques. When a cheque is paid into a bank account or cashed, it must be returned to the bank from where it came from for the actual transfer of money to be made. All information on a cheque is printed in a row of magnetic ink characters along the bottom of the cheque. This enables cheques to be sorted and account to be updated by the computer. Other applications of computer in banking are automatic teller machine (ATM), credit card, electronic fund transfer. Though each of these has their own pitfalls, the benefits in terms of convenience outweighs the pitfalls. In this regard many undergraduates of accounting department have devoted their undergraduate research works in underscoring the benefits of computer to the banking sector. Below are the benefits of online banking:

Advantages of Online Banking

Convenience : Unlike physical banks, online banking sites never close; they are available 24 hours a day, seven days a week and they are only a mouse click away.

Effectiveness : Many online banking sites now offer sophisticated tools, including account aggregation, stock quotes, rate alerts and portfolio managing programs to help customers manage their assets more effectively. Most are also compatible with money managing programs such as Quicken and Microsoft Money.

Ubiquity : If a customer is out of the country for instance and a money problem arises, he/she can log on instantly to the online bank and take care of the business 24/7

Transaction speed : Online bank sites generally execute and confirm transaction faster than ATM processing speeds.