PC Meeting 11/4/96

PC Group Meeting 11/4/96

(Electronic Banking from the National Bank)

Was to be presented by Nigel Wilson, but was done by Jane who is
the rep for the top of the south island (above Timaru)

With a computer, modem & $40 per month you can pay your bills
electronically (no cheques involved). Apparently this has been available
to large companies for 7 years. Now the National Bank is targeting
medium to small businesses with this Windoze product.

With the pricing at $40 per month (no other charges) I suspect that
it is being subsidized. This price makes it economical down to the
business with only a few staff.

The software looks like it has been refined over many versions. Despite
having no accounting knowledge, after the 40 minute presentation I am
sure I could use the package to pay my bills. With the use of credit
cards and EFTPOS, I could throw away that annoying _right_ handed
cheque book.

The product is not targeted at individuals, however it seems inevitable
that a personal electronic banking service will be promoted by the banks in a few years.

The most interesting part is the security verification method.
Payments are made in batches. Each batch goes through a 5 stage cycle

1. Data entry
The bank accounts, and the amount to be transferred is entered.
For a business using an accounting package, this is done

2. Batch frozen
At this stage a printout can be obtained

3. Security Verification
The purchaser of the product is given a small device that (from
a distance) appears to be a calculator.
The person(s) that can authorize the payments has a PIN number
(8-12 digits). Each batch generates a random number. To authorize
a batch, you enter your PIN number and the unique number for the
batch. The calculator responds with a number, this is entered into
the computer.

4. Waiting in Que
Each batch waits for connection via the telephone to the bank.
When connected, a compressed file is sent to the bank. The bank
responds to verify the transactions and puts the batch in …

5. Finished Box
Transactions completed. These can be dragged to the first stage,
the amounts changed to correspond to the bills, and the process

Other Features :
* Receive Account statements (sent to accounting software)

* E-Mail to the Bank Manager (another $1,000,000 loan pleeze)

* No limit on the number of accounts used

* Could be used for company or personal use

* Works on International transactions

* Can request a bank cheque

* Requires 30Meg HD Space

* $100 for every additional calculator device

* More secure than a cheque or credit card (Similar to EFTPOS)

* transactions can be made on a specific date (ie when you have the $$)