Know and understand characteristics, uses, advantages and disadvantages of Electronic Funds Transfer (EFT), credit/debit card transactions, cheques, internet banking

ICT 0417 – ICT Applications: Banking & Wider Syllabus Overview (2026‑2028)

1. Foundations – Computer Hardware, Operating Systems, Networks & Emerging Technologies

1.1 Hardware components

• CPU (Central Processing Unit) – executes instructions; core vs. thread, clock speed.
• Memory – RAM (volatile, fast) for active data; ROM/Flash for firmware.
• Storage – HDD (magnetic), SSD (solid‑state), external USB drives.
• Input devices – keyboard, mouse, scanner, microphone, touch screen.
• Output devices – monitor (LCD/LED), printer, speakers, projector.
• Peripherals – external hard‑disk, webcam, USB hub, network card.

1.2 Operating systems (OS)

• Desktop OS – Windows, macOS, Linux (GUI vs. CLI).
• Mobile OS – Android, iOS – manage apps and hardware resources.
• OS functions: file management, security (user accounts, permissions), multitasking, device drivers.

1.3 Network basics

• Types of networks – LAN (local), WAN (wide), Internet (global).
• Key devices – router, switch, modem, access point.
• Common protocols – TCP/IP (addressing), HTTP/HTTPS (web), FTP (file transfer), SMTP/POP3/IMAP (email), SSL/TLS (encryption).
• Wi‑Fi standards (802.11a/b/g/n/ac/ax) and basic security (WPA2/WPA3).

1.4 Emerging technologies

• Cloud computing – SaaS, PaaS, IaaS; examples: Google Drive, Microsoft Azure.
• Internet of Things (IoT) – smart‑home devices, wearable health monitors.
• Artificial intelligence (AI) – machine learning, chat‑bots, voice assistants.
• Virtual/augmented reality (VR/AR) – immersive simulations, training.

1.5 Health & safety

• Physical safety – avoid electrocution, keep cables tidy, use surge protectors, maintain proper ventilation for hardware.
• Ergonomic workstation – monitor at eye level, chair with lumbar support, keyboard/mouse at comfortable height, regular breaks (20‑20‑20 rule).
• E‑safety checklist

  • Use strong, unique passwords (≥8 characters, mix of letters, numbers, symbols).
  • Enable two‑factor authentication (2FA) wherever possible.
  • Keep OS, applications and anti‑malware up‑to‑date.
  • Do not open unexpected attachments or click unknown links.
  • Back‑up data regularly (cloud or external encrypted drive).

2. ICT Applications (Section 6 of the syllabus)

Each application area includes a brief description and a typical example.

3. Core Banking Applications – EFT, Credit/Debit Cards, Cheques & Internet Banking

3.1 Electronic Funds Transfer (EFT)

Definition: Electronic movement of money from one bank account to another without a paper instrument.

Characteristics

• Processed via secure banking networks (e.g., SWIFT for international, ACH/FPS for domestic).
• Initiated through ATMs, online banking, mobile apps, or POS terminals.
• Completion time: real‑time (instant) to a few days (batch‑processed).
• Authentication: user ID + password/PIN, biometrics, or token.

Typical uses

• Salary & pension payments.
• Utility, council tax, telephone bill payments.
• Online shopping and subscription services.
• Remittances to family abroad.

Advantages

• Fast – often completed within minutes.
• Convenient – 24/7 access from any internet‑connected device.
• Reduced paperwork; lower risk of loss or theft.
• Automatic transaction logs aid budgeting and record‑keeping.

Disadvantages

• Depends on electronic infrastructure; outages halt transfers.
• Potential fraud if authentication is weak or credentials are compromised.
• Fees may apply for certain transfers (especially international).

3.2 Credit and Debit Card Transactions

Credit cards provide a short‑term loan up to a pre‑approved limit; debit cards withdraw funds directly from the holder’s current account.

Characteristics

• Data stored on magnetic stripe or EMV chip.
• Verification: PIN for debit; PIN or signature for credit (chip‑and‑pin increasingly standard).
• Real‑time authorisation via payment networks (Visa, Mastercard, etc.).
• Supports contactless, online, and mobile‑wallet transactions.

Typical uses

• Purchasing goods & services in shops and online.
• Cash withdrawals at ATMs (debit).
• Recurring payments – subscriptions, utilities, insurance.

Advantages

• No need to carry cash; accepted worldwide.
• Credit cards help build a credit history and often include reward schemes.
• Built‑in fraud protection – liability limits for unauthorised transactions.
• Instant transaction records aid personal budgeting.

Disadvantages

• Risk of overspending and high‑interest debt (credit).
• Vulnerability to skimming, phishing, data‑breach attacks.
• Foreign‑currency conversion fees or merchant surcharges may apply.

3.3 Cheques

A paper instrument that orders a bank to pay a specified sum from the drawer’s account to a named payee.

Characteristics

• Standard layout: date, payee, amount (numbers & words), signature, MICR line.
• Physical handling – must be mailed or hand‑delivered.
• Clearing process typically takes 2–5 business days (longer for cross‑border).

Typical uses

• Payments where electronic methods are not accepted (e.g., certain government fees).
• Business‑to‑business payments and payroll in organisations that still use paper.
• Legal or formal transactions that require a signed paper record.

Advantages

• Widely recognised and accepted in many jurisdictions.
• Provides a tangible, auditable record.
• Useful for large or irregular payments where electronic limits exist.

Disadvantages

• Slow processing – funds unavailable until cleared.
• Risk of loss, theft, forgery or alteration.
• Manual reconciliation is time‑consuming.
• Clearing fees may be charged by the bank.

3.4 Internet Banking (Online Banking)

Access to banking services via a secure website or mobile application.

Characteristics

• Secure login – username, password, often 2FA (OTP, authenticator app).
• Features: balance enquiry, statements, transfers, bill payments, standing orders, loan applications, transaction alerts.
• Available 24 hours a day, 7 days a week from any internet‑connected device.
• Encryption (SSL/TLS) protects data in transit.

Typical uses

• Transfer funds between own accounts or to third‑party accounts.
• Pay regular bills and set up standing orders.
• Apply for new financial products (loans, credit cards).
• Monitor transactions for fraud detection and budgeting.

Advantages

• Convenient – no need to visit a branch.
• Immediate access to up‑to‑date account information.
• Usually free or low‑cost compared with offline methods.
• Security features: SSL/TLS, OTPs, device‑recognition, transaction limits.

Disadvantages

• Requires reliable internet and a compatible device.
• Potential exposure to phishing, malware, and hacking attacks.
• Some users find the interface confusing or inaccessible.
• Technical outages can temporarily block access.

3.5 Comparison of the Four Banking Methods

4. Systems Life‑Cycle (Section 7)

Each stage lists the key techniques and artefacts required by the syllabus.

1. Analysis

   • Gather requirements – questionnaires, interviews, observation.
   • Document user needs – functional & non‑functional specifications.
   • Identify constraints – hardware, budget, legal.

2. Design

   • Create data‑flow diagrams, entity‑relationship diagrams, or flowcharts.
   • Specify file structures, database tables, validation routines.
   • Design user interface mock‑ups (wire‑frames) and system architecture.

3. Development / Testing

   • Write or configure code, build forms, set up databases.
   • Unit testing, integration testing, user‑acceptance testing (UAT).
   • Record test results and fix defects.

4. Implementation

   • Install hardware/software, migrate data, configure security settings.
   • Train users – manuals, tutorials, on‑site support.
   • Choose rollout method – parallel, phased, direct cut‑over.

5. Documentation

   • User guide, technical guide, troubleshooting FAQ.
   • Maintain version control and change‑log records.

6. Evaluation

   • Assess whether objectives have been met – performance, usability, security.
   • Collect user feedback, analyse error logs.
   • Recommend improvements or future upgrades.

5. Safety, Security, Data Protection & Communication (Sections 8‑10)

5.1 Physical safety

• Keep cables away from walkways to prevent tripping.
• Use surge protectors and unplug equipment during storms.
• Do not place liquids near computers; follow manufacturer’s ventilation guidelines.

5.2 E‑safety & Threats

• Malware – viruses, ransomware, spyware.
• Phishing – deceptive emails/websites requesting credentials.
• Social engineering – impersonation to obtain confidential info.
• Denial‑of‑service (DoS) attacks – overload services.

5.3 Data‑protection principles (aligned with GDPR‑style legislation)

• Lawful, fair & transparent processing – obtain consent where required.
• Purpose limitation – collect only what is needed for a specific purpose.

Data minimisation – keep data accurate and up‑to‑date.

• Storage limitation – retain data no longer than necessary.
• Integrity & confidentiality – use encryption, access controls.
• Accountability – maintain records of processing activities.

5.4 Audience analysis & Copyright

• Audience analysis

  • Identify primary and secondary users.
  • Consider age, technical skill, language, accessibility (visual/audio impairments).
  • Tailor interface layout, colour contrast, help‑texts accordingly.

• Copyright & intellectual property

  • Only use software, images, music, or text with permission or that is royalty‑free.
  • Give appropriate attribution (author, source, licence).
  • Understand “fair dealing” for educational purposes.

5.5 Email & Internet etiquette (netiquette)

6. Practical Skills – Files, Images, Layout, Styles, Proofing & Graphs (Sections 11‑16)

6.1 File management

• Consistent naming convention (e.g., YYYYMMDDProjectNameVersion.ext).
• Logical folder hierarchy – Projects → Drafts → Final.
• Version control – keep previous versions, use “v1.0”, “v1.1”.
• File compression – ZIP or RAR to reduce size for email or backup.
• Generic file formats – CSV/TXT for data, PDF for read‑only documents.

6.2 Images

• Raster formats – JPEG (photographs, lossy), PNG (transparent backgrounds, lossless), GIF (animation, limited colours).
• Vector formats – SVG, EPS – scalable without loss of quality.
• Basic editing – crop, resize, rotate, colour correction, adding transparency.
• Resolution – 72 dpi for web, 300 dpi for print.

6.3 Document layout & styles

• Use heading styles (H1‑H4) for structure; automatic table of contents.
• Paragraph styles – alignment, line spacing, indentation.
• Bulleted/numbered lists, tables, captions, footnotes.
• Headers/footers – page numbers, document title, date.

6.4 Proof‑reading tools

• Spell‑check and grammar check.
• Readability scores (Flesch‑Kincaid) for appropriate language level.
• Peer review checklist – content, layout, consistency.

6.5 Charts & graphs

• Bar chart – compare categories.
• Line chart – show trends over time.
• Pie chart – illustrate parts of a whole (use ≤ 5 slices).
• Scatter plot – display relationship between two variables.
• Always label axes, include units, add a clear legend, and choose appropriate scales.

7. Practical Task Checklist – Mapping to Assessment Objectives (AO1‑AO3)