Telephone banking
Telephone banking is a service provided by a bank or
other financial institution, that
enables customers to perform a range of financial transactions over the telephone, without the need
to visit a bank branch or automated
teller machine. Telephone banking times are usually longer than branch opening
times, and some financial institutions offer the service on a 24-hour basis.
Most financial institutions have restrictions on which accounts may be accessed
through telephone banking, as well as a limit on the amount that can be
transacted.
The types of financial transactions which a
customer may transact through telephone banking include obtaining account
balances and list of latest transactions, electronic
bill payments, and funds
transfers between a customer's or
another's accounts.
From the bank's point of view, telephone
banking minimises the cost of handling transactions by reducing the need for
customers to visit a bank branch for non-cash withdrawal and deposit
transactions. Transactions involving cash or documents (such as cheques) are
not able to be handled using telephone banking, and a customer needs to visit
an ATM or bank branch for cash
withdrawals and cash or cheque deposits.