Know and understand characteristics, uses, advantages and disadvantages of Automatic Teller Machines (ATM) including withdrawing cash, depositing cash or cheques, checking account balance, mini statements, bill paying, money transfers

ICT 0417 – Comprehensive Lecture Notes (Updated)

1. Foundations of ICT (Syllabus Blocks 1‑5)

1.1 Computer Systems

• Hardware

  • CPU (processor) – executes instructions.
  • RAM (volatile memory) – temporary data storage.
  • ROM / Flash (non‑volatile memory) – permanent storage of firmware and OS.
  • Input devices – keyboard, mouse, touch‑screen, card reader, PIN pad.
  • Output devices – monitor, printer, speaker, cash dispenser, receipt printer.

• Software

  • System software – operating system (e.g., Windows Embedded, Linux), device drivers, utilities (disk‑defragmenter, antivirus).
  • Application software – banking apps, word processors, spreadsheet programmes, database management systems.

• Analogue‑Digital Conversion

  • Sampling – converting a continuous signal into discrete values (e.g., audio from a microphone).
  • Bit depth – determines the resolution of each sample (e.g., 8‑bit, 16‑bit).

• Storage Media

  • Hard‑disk drives (HDD), Solid‑state drives (SSD), magnetic tape, optical disc (CD/DVD), USB flash drive, cloud storage.

1.2 Input & Output (I/O)

• Banking‑specific I/O devices: card readers, PIN pads, cash dispensers (output), receipt printers, touch‑screen displays, audio prompts.
• Data‑flow model: input → processing → output → storage.

1.3 Networking Basics

• Key components – Network Interface Card (NIC), router, switch, Wi‑Fi access point.
• Secure communication protocols used by ATMs: TLS/SSL, VPN tunnels, IPsec.
• Client‑server model – the ATM acts as a client requesting services from the bank’s central server.

1.4 Effects of ICT on Individuals and Society

• Positive – convenience, financial inclusion, time‑saving, 24 h service.
• Negative – digital divide, privacy concerns, potential job displacement.
• Ethical considerations – fairness, accessibility for disabled users, data protection, environmental impact of electronic waste.

2. ICT Applications (Syllabus Block 6)

2.1 Banking – Automatic Teller Machines (ATMs)

• Core functions: cash withdrawal, cash/cheque deposit, balance enquiry, mini‑statement, bill payment, money transfer.
• Link to other ICT areas – database management, networking, security, UI design.

2.2 Communication

• Email etiquette and netiquette – used for electronic receipts and bill‑payment confirmations.
• Instant messaging & video‑conferencing – remote support for ATM networks.
• Internet protocols – HTTP, HTTPS, FTP, SSL/TLS, SMTP, POP3/IMAP (relevant for ATM‑related e‑mail and data transfer).

2.3 Modelling & Simulation

• Spreadsheet models to forecast cash demand at each ATM location.
• Simulation software (e.g., AnyLogic) to test queue‑management and service times.

2.4 Retail & Point‑of‑Sale (POS) Systems

• Hardware similarity – card readers, receipt printers, touch screens, NFC readers.
• Integration with inventory databases and payment gateways.

2.5 Expert Systems

• Rule‑based systems that detect fraudulent ATM transactions (abnormal withdrawal patterns).
• Decision‑support tools for planning new ATM locations.

2.6 Health & Other Sectors

• Self‑service kiosks in hospitals – patient check‑in, bill payment, record retrieval (analogous to ATMs).

2.7 Additional Required Examples

• School‑management systems – attendance, grading, timetabling.
• Online booking systems – travel tickets, event reservations.
• Retail EFTPOS/NFC – contactless payments, mobile wallets.

3. Systems Development Life‑Cycle (SDLC) – ATM Interface Case Study (Syllabus Block 7)

4. Safety & Security (Syllabus Block 8)

4.1 Physical Safety

• Secure installation – CCTV, anti‑skimming devices, tamper‑evident seals.
• Emergency shut‑down procedures, fire‑safety compliance, UPS backup.

4.2 Data Protection & Legislation

• GDPR – lawful processing, right to be forgotten, data minimisation.
• PCI‑DSS – standards for card‑holder data security.
• Copyright law – software licences, fair‑use, avoiding piracy.

4.3 Passwords & Authentication

• PIN encryption (3‑DES, AES); limited attempts (usually three).
• Two‑factor authentication (OTP via mobile app) for high‑value transfers.
• Best practice – avoid predictable PINs, change regularly.

4.4 Malware, Phishing & Social Engineering

4.5 Encryption & Secure Communication

• Transport Layer Security (TLS) for data between ATM and bank server.
• End‑to‑end encryption of transaction details (AES‑256).
• Digital signatures to verify software integrity.

5. Audience, Copyright & Legal Issues (Syllabus Block 9)

• Identifying the audience – design UI for a wide demographic (different ages, languages, disabilities). Use clear icons, large fonts, optional audio prompts, Braille keypads.
• Copyright & software licensing

  • All images, logos, and code must be owned, licensed, or released under a compatible free licence (e.g., Creative Commons).
  • Prevent piracy by using licensed operating systems and signed firmware updates.
  • Fair‑use may apply for limited excerpts in training material, but commercial distribution requires permission.

• Legal compliance – adhere to national banking regulations, consumer protection laws, and accessibility standards (WCAG 2.1).

6. Communication Skills (Syllabus Block 10)

6.1 Professional Email & Netiquette

• Subject line – concise, e.g., “ATM Transaction Receipt – Ref #123456”.
• Structure – greeting, purpose, details, closing, signature.
• Netiquette – polite tone, avoid ALL CAPS, use BCC for mass mailings, limit attachment size, scan attachments for viruses.
• Spam awareness – recognise unsolicited requests for PINs or personal data.

6.2 Internet Protocols Checklist

• HTTP / HTTPS – web page delivery, secure version for online banking.
• FTP – file transfer (e.g., firmware updates).
• SSL / TLS – encryption of data in transit.
• SMTP, POP3, IMAP – e‑mail sending and retrieval.

7. File Management, Images, Layout & Styles (Syllabus Blocks 11‑16)

7.1 File Management & Compression

• Folder hierarchy example:

  ATM_Project/
  │─ Design/
  │─ Code/
  │─ Docs/
  │─ Assets/
  

• Version control – naming conventions (v1.0, v1.1) or Git repositories.
• Compression formats – .zip, .rar for archiving; .7z for higher compression.

7.2 Working with Images

• Common formats: PNG (icons, lossless), JPEG (photographs, lossy), SVG (scalable UI graphics), GIF (simple animations).
• Optimising size – use image‑editing tools to reduce resolution and apply compression without noticeable quality loss.

7.3 Layout & Styles

• Consistent colour scheme (bank branding), font hierarchy (heading, sub‑heading, body).
• Use CSS style sheets in web‑based ATM prototypes to separate content from presentation.

7.4 Proofreading & Quality Assurance

• Check spelling/grammar of all on‑screen messages (e.g., “Transaction Successful”).
• Usability testing with diverse users to catch ambiguous wording or accessibility issues.

7.5 Graphs & Charts

• Bar chart – daily cash dispensed per ATM.
• Pie chart – proportion of transaction types (withdrawal, deposit, bill pay).
• Line graph – trend of peak usage times over a month.

8. Document Production, Databases, Presentations, Spreadsheets & Website Authoring (Syllabus Blocks 17‑21)

8.1 Document Production

• Structure a user manual: title page, table of contents, numbered steps, screenshots, glossary.
• Apply built‑in styles for headings, body text, and captions; use automatic numbering and cross‑references.

8.2 Databases

• Relational tables – Accounts, Transactions, ATMs.
• Key concepts – primary key (unique identifier), foreign key (referential integrity), data types, constraints.
• Form design – input masks for account numbers, drop‑down lists for transaction types.
• SQL example:

  SELECT Balance
  FROM Accounts
  WHERE CardNumber = '1234567890123456';

• Contrast with flat‑file databases (e.g., CSV) – no relational links, limited query capability.

8.3 Presentations

• Slide deck for senior management – include charts, maps, risk analysis.
• Use slide master for consistent layout; add speaker notes for oral delivery.

8.4 Spreadsheets

• Cash‑reconciliation sheet – columns: Opening Balance, Cash Dispensed, Cash Deposited, Closing Balance.
• Key functions:

  • =SUM(B2:B31) – total cash dispensed.
  • =VLOOKUP(A2,Accounts!A:B,2,FALSE) – retrieve balance.
  • =IF(C2>0,"Positive","Negative") – conditional test.
  • Nested functions, conditional formatting, data validation.

8.5 Website Authoring

• HTML5 structure – <!DOCTYPE html>, <html>, <head> (meta‑tags, title, link to external CSS), <body>.
• CSS – external stylesheet, hierarchy (reset → layout → component → theme), use of relative paths.
• Responsive design – media queries for mobile, tablets, desktops.
• Accessibility – alt text for images, ARIA labels, keyboard navigation, colour contrast meeting WCAG 2.1 AA.

9. Detailed Study of ATM Functions

9.1 Withdrawing Cash

1. Insert card → magnetic stripe or EMV chip read.
2. Enter PIN – encrypted and transmitted to bank server.
3. Select “Withdraw Cash” and choose amount.
4. Server checks balance, authorises, sends dispense command.
5. Cash is released; receipt printed (optional).

9.2 Depositing Cash or Cheques

1. Select “Deposit” → choose cash or cheque.
2. Insert notes/cheques into the deposit slot.
3. Machine scans, validates (counterfeit detection, cheque image capture).
4. Amount credited instantly (cash) or after batch processing (cheque).
5. Receipt printed showing deposited amount and reference.

9.3 Balance Enquiry & Mini‑Statement

• Balance enquiry – displays current available balance; optional printed receipt.
• Mini‑statement – prints last 5‑10 transactions with date, type, amount.

9.4 Bill Paying

1. Select “Bill Pay” → choose biller (e.g., electricity, water).
2. Enter reference/account number and amount.
3. Confirm details; transaction sent to biller’s clearing house.
4. Receipt shows confirmation number for future reference.

9.5 Money Transfers

1. Select “Transfer” → “Between my accounts” or “To another bank”.
2. Enter source and destination account numbers, amount.
3. For inter‑bank transfers, ATM communicates with national clearing system (e.g., BACS, ACH).
4. Confirmation receipt printed.

10. Advantages & Disadvantages – Consolidated Table

11. Diagram – ATM Transaction Flow

12. Review & Assessment Questions

1. List three security measures built into modern ATMs and explain how each protects the user’s data.
2. Discuss why ATMs are considered a cost‑effective ICT application for banks, referencing both hardware and software aspects.
3. Identify two limitations of ATMs compared with a full‑service bank branch and suggest a technological solution that could mitigate each limitation.
4. Describe the step‑by‑step process a user follows to pay an electricity bill using an ATM, including any security checks.
5. Explain the role of the Systems Development Life‑Cycle when creating a new ATM interface, highlighting documentation and evaluation stages.
6. Define the following threats and give one preventive measure for each: phishing, pharming, smishing, vishing, card‑skimming.
7. Write an example of a correctly formatted professional email confirming a successful ATM transaction.
8. Using SQL, write a query that returns the last five transactions for a given account number.
9. In a spreadsheet, which function would you use to look up a customer’s balance based on their account number? Provide a sample formula.
10. List three HTML meta‑tags required for a responsive ATM information web page and explain their purpose.