Technology and Banking Banking and Financial Services Finance Lesson Plan
Performance Objectives Students will understand the impact of technology on banking. Specific Objective  Describe the need for efficiency in different areas of banking.  Identify trends in banking technology  Identify possible outcomes of innovative banking technology. Terms  P2P – peer‐to‐peer; online payments to another person.  Hackers – (unauthorized) experts in obtaining or manipulating computer data.  Viruses – computer infections that can spread through e‐mail and other files that are shared.  Firewalls – a way that a business can block unauthorized access to its network.  Social media – forms of communicating electronically.  App – a software application that can be installed on a Smartphone.  Demographic data – statistical data relating to different groups of people.  Psychographic data – data regarding attitudes, values, and interests.  Data mining – uncovering patterns in data and making meaning out of that data. Time When taught as written, this lesson should take approximately three to four days to teach. Preparation
TEKS Correlations: This lesson, as published, correlates to the following TEKS. Any changes/alterations to the activities may result in the elimination of any or all of the TEKS listed. 130.163 (c) Knowledge and Skills (9) The student uses tools, strategies, and systems to operate banking equipment. The student is expected to: (A) use banking technology to increase workplace efficiency and effectiveness, such as fill and empty automated teller machines and process numeric data; and (B) discuss the impact of technology on the banking industry. Copyright © Texas Education Agency, 2014. All rights reserved.
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Interdisciplinary Correlations English‐English I  110.31 (b) (1) Reading/Vocabulary Development. Students understand new vocabulary and use it when reading and writing.  110.3 (b) (11) Reading/Comprehension of informational text/procedural texts. Students understand how to glean and use information in procedural texts and documents. Math‐Algebra I  111.32 (b) (1) (C) Interpret and make decisions, predictions, and critical judgments from functional relationships. Social Studies‐World Geography 113.34 (c) (20) (A) Describe the impact of new technologies, new markets, and revised perceptions of resources. Occupational Correlation (O*Net – www.onetonline.org/) Job Title: Market Research Analysts and Marketing Specialists O*Net Number: 13‐1161.00 Reported Job Titles: Market Research Consultant, Client Service and Consulting Manager, Market Research Manager Tasks 
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Gather data on competitors and analyze their prices, sales, and method of marketing and distribution. Collect and analyze data on customer demographics, preferences, needs, and buying habits to identify potential markets and factors affecting product demand. Devise and evaluate methods and procedures for collecting data, such as surveys, opinion polls, or questionnaires, or arrange to obtain existing data. Soft Skills Coordination, Judgment and Decision Making, Speaking Accommodations for Learning Differences It is important that lessons accommodate the needs of every learner. These lessons may be modified to accommodate your students with learning differences by referring to the files found on the Special Populations page of this website. Preparation  Review and familiarize yourself with the terminology and website links  Have materials and websites ready prior to the start of the lesson. Copyright © Texas Education Agency, 2014. All rights reserved.
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References  http://ithandbook.ffiec.gov/it‐booklets/retail‐payment‐systems/payment‐instruments,‐clearing,‐and‐
settlement/card‐based‐electronic‐payments/online‐person‐to‐person‐%28p2p%29,‐account‐to‐
account‐%28a2a%29‐payments‐and‐electronic‐cash.aspx  Banking & Financial Systems. (2013). N.p.: Goodheart‐Willcox Publisher.  http://www.frbatlanta.org/pubs/extracredit/14spring_technology_trends.cfm  http://www.occ.gov/publications/publications‐by‐type/comptrollers‐handbook/efteare.pdf Instructional Aids  Textbook  Lesson Presentation  Instructor Computer/Projection Unit  Online Websites Introduction
The main purposes of this lesson are to help students understand  how technology can make banking more efficient;  recent technology trends; and  major trends of the past that have evolved into banking today. Ask students if they are familiar with recent banking phone apps. Ask students if they have any ideas about what can be the next trend in banking. Copyright © Texas Education Agency, 2014. All rights reserved.
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Outline I. II. III. The need for technology and innovation in banking A. Increased demand for efficiency from: 1. Consumers 2. Government 3. Corporations B. Global competition C. Increased complexity of banking D. Increased demand for “green” processes in banking Benefits of data mining in marketing A. Technology in banking can create more effective data mining of banking customers B. Leads to increased number of customers and increased profits C. more personalized service through: 1. Demographic data – statistical data relating to different groups of people 2. Psychographic data – data regarding attitudes, values, and interests 3. Identification of target markets Ask students how many of them have ever gone inside of a bank. Also ask students how many of them are concerned with being “green.” Explain that many corporations now have departments that are involved with socially responsible business. When discussing what data mining is and what it is used for, ask students if they feel that this form of obtaining information is an invasion of their privacy. Students today may not even write checks but explain that they may receive checks. Timeline of major banking technology A. MICR – 1950s Multiple Intelligences Guide
Existentialist
Interpersonal
Intrapersonal
Kinesthetic/
Bodily
Logical/
Mathematical
Musical/Rhythmic
Naturalist
Verbal/Linguistic
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Visual/Spatial
V. IV. V. VI. B. ATM – 1960s C. EFT – 1970s D. Online banking MICR – Magnetic Ink Character Recognition A. Aids in processing checks B. Aids in sorting checks C. MICR readers can scan the numbers at the bottom of a check and process them more quickly ATM A. Automated teller machine 1. An electronic machine that allows banking customers to access their accounts and perform many basic banking functions 2. Earlier versions were in limited use as early as the 1930s, but the one most like what is used today was released in 1969 B. services 1. Cash withdrawals 2. Deposits 3. Balances EFT A. Electronic funds transfer – a transfer of funds from one account to another through electronic means Now ask students how many of them have conducted any business online (as in using debit cards for purchases or checking their balances). Many probably have. Ask if students have used an ATM machine. What have they used it for? Discuss the ways money can be transferred with doing it physically. There are electronic funds transfers and ACH or Automated. Multiple Intelligences Guide Existentialist
Interpersonal
Intrapersonal
Kinesthetic/
Bodily
Logical/
Mathematical
Musical/Rhythmic
Naturalist
Verbal/Linguistic
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Visual/Spatial
B. Electronic Funds Transfer Act – protects individuals who transfer money electronically, whether it is through 1. ATMs 2. Telephone payment systems 3. Point‐of‐sale terminals 4. Other electronic transfers VII. Online banking A. Conducting transactions B. Viewing information VIII. Consumer tools A. Mobile deposit app B. Photo bill payment app C. Credit card scanner D. Teleconferencing E. Mobile payment app XIV. Mobile deposit app A. Check use on the decline in the last decade B. If you do get a check, it can be scanned with the mobile deposit app and deposited without any paper C. Banks reducing the size and number of new branches due to less face‐to‐face transactions
Clearinghouse transfers‐ They are also called ACH payments. Many direct deposits are transferred this way. Students may be familiar with direct deposit. If the teacher has any banking apps on his/her phone, show them to students just to see the services they can perform, or go to banking websites and show the students the options they can choose from. Multiple Intelligences Guide
Existentialist
Interpersonal
Intrapersonal
Kinesthetic/
Bodily
Logical/
Mathematical
Musical/Rhythmic
Naturalist
Verbal/Linguistic
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Visual/Spatial
XV. Photo bill payment app A. Uses Smartphone to take a picture of a bill or invoice B. Information sent to the bank from the app C. Bank can generate a payment for that bill electronically from your account XVI. Credit card scanner A. More spent with credit cards than with cash B. Scanner attaches to mobile device C. Card swiped and payment made electronically D. Lower cost to the vendor than traditional card acceptance methods XVII. Teleconferencing A. Has been done for a while, but is on the increase in the financial industry B. Typically done through conference calling than to individuals C. Video‐conferencing is increasingly popular through phone lines and a monitor XVIII. Mobile payment app A. Stores credit and debit card information on your phone B. No need for the actual card Ask students if they have seen scanners attached to a mobile device. They were originally used more for smaller businesses, but now more businesses have discovered that a customer can pay for a purchase with a scanner instead of waiting in checkout lines, which is where most second‐
guessing of purchases are done. Discuss with students the idea of tele‐ or video‐conferencing. They may have done it with their friends through an app on their phone, but they may not have referred to it as video‐
conferencing. More businesses now are using this technology for meetings as it is much more cost‐effective than airfare and hotel reservations. This same technology has been used with computer monitors for some time. Multiple Intelligences Guide
Existentialist
Interpersonal
Intrapersonal
Kinesthetic/
Bodily
Logical/
Mathematical
Musical/Rhythmic
Naturalist
Verbal/Linguistic
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Visual/Spatial
C. At the point of sale, customer opens the app, locates the appropriate card, and a reader that a store has reads the information XIX. Mobile banking A. Text messaging B. Online bill pay C. P2P and A2A XX. Text Messaging A. Checking balances on accounts B. Receive text message alerts for notices such as: 1. Payment reminders 2. Low balances XXI. Online bill payment A. Pay bills online B. Do not have to go to a bank lobby C. Do not have to use the bank’s drive‐through service D. Can use the bank’s website XXII. P2P and A2A A. P2P – peer‐to‐peer; online payments to another person, usually through using the same bank B. A2A – account‐to‐account; usually a customer’s account number must be known for this kind of transaction
Kinesthetic/
Show the students bank websites and where there are options to select online bill pay or text messaging alerts. These services are more readily available than some of the app services because not all phones in service are smart phones (but most can at least have access to text messaging). Discuss with students if they have ever received checks in the mail, for example, for a birthday. With the P2P service, instead of checks arriving through “snail mail” they can be transferred electronically to someone else’s account. Logical/
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Existentialist
Interpersonal
Intrapersonal
Bodily
Mathematical
Musical/Rhythmic
Naturalist
XXIII. Trends in banking A. Trends in banking are changes over time that are directed by the needs of a bank’s customers and businesses. B. Using social media to aid in marketing C. Changes in fee structures due to changes in processing of bank services D. The Durbin Amendment calls for lower fees for debit card purchases but keeps fees for credit card purchases the same XXIV. Outcomes of banking trends A. Increased number of customers B. Decreased processing time of transactions C. Increased variety of services D. Increased amount of information that can be processed Verbal/Linguistic
Visual/Spatial
Social media is becoming an increasingly popular way to market banking services. There are many social media sites that businesses use. Ask students to volunteer names of websites and examples they have seen of businesses using social media sites. There is no question that many more customers can be reached for a less expensive cost with the technology developments in banking. Multiple Intelligences Guide
Existentialist
Interpersonal
Intrapersonal
Kinesthetic/
Bodily
Logical/
Mathematical
Musical/Rhythmic
Naturalist
Verbal/Linguistic
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Visual/Spatial
Application
Guided Practice Have students, in pairs, talk about what services they think should be offered by banks—but may not be currently offered. They can write their ideas on sticky notes. Students should place the notes on the board. A student moderator can read off the notes and the class can discuss whether a form of the service is currently offered, or what would be needed to offer that particular technology in the future. Independent Practice In a computer lab, students can research the future of technology in banking and they can write one paragraph on what they have found. Have them get a student on either side of them to share their ideas. Summary
Review Ask students the following questions on exit tickets. Question #1: What is one important reason for technology in banking? Answer #1: The demand for efficiency is important. Question #2: What is data mining? Data mining is making meaning out of data. Answer #2: Question #3: What are four major events in banking technology? Answer #3: MICR, ATMs, EFT, and online banking. Question #4: What is a recent major development in banking? Answer #4: Banking apps are a hugely popular recent development in banking. Question #5: What is another important feature of banking that you can sign up for on a bank’s website? Text messaging to receive payment or low balance alerts are a great new feature. Answer #5: Evaluation
Informal Assessment Any and all of the following can be used as informal assessments.  Exit tickets with vocabulary  Pair‐share activities  Class discussion and participation Formal Assessment Copyright © Texas Education Agency, 2014. All rights reserved.
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The following can be considered a formal evaluation.  Banking Technology Timeline Assignment #1 – Students will create a timeline of at least 10 events in banking technology. They will include dates and inventors. They may use a computer‐created timeline (where they locate a site that can make a timeline but the student types in all of the information) or they may design their own. Include appropriate graphics.  Banking App Assignment #2 – Students will research the different banking apps that are available at several different banks. They will create a professional‐looking brochure that shows the different apps that are available and what services can be conducted with these apps.  Banking PSA Assignment #3 – Students will get into groups of three to four and create their own Public Service Announcement video. They are to create the name of a bank, decide what current or futuristic technologically‐advanced services that their bank will offer, and create a “commercial” advertising their services. They must include at least five different services, provide appropriate graphics or visuals, and keep their video less than one minute. Enrichment
Extension Have students interview someone who is involved in Information Technology or Software Development for a bank. Develop a list of five questions relating to possible app ideas for phones or upcoming innovative banking technology. Copyright © Texas Education Agency, 2014. All rights reserved.
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Technology and Banking Banking Technology Timeline Assignment #1 Student Name: _____________________________ CATEGORY 20 15 8 1 Content/Facts Facts were accurate for all events reported on the timeline. Facts were accurate for almost all events reported on the timeline. Facts were accurate for most (75%) of the events reported on the timeline. Facts were often inaccurate for events reported on the timeline. Readability The overall appearance of the timeline is pleasing and easy to read. The overall appearance of the timeline is somewhat pleasing and easy to read. The timeline is relatively readable. The timeline is difficult to read. Dates An accurate, An accurate, complete date complete date has been has been included for each included for event. almost every event. Time Use Classroom time Classroom time Classroom time was used to work was used to work was used to on the project. on the project work on the the majority of project only the time. some of the time. Graphics All graphics are effective and balanced with text use. An accurate date Dates are has been inaccurate included for 50% and/or missing of events. for several events. Student did not use classroom time to work on the project. All graphics are Some graphics Several graphics effective, but are effective and are not effective. there appear to their use is be too few or too balanced with many. text use. Maximum Points Possible: 100 Student Points: ___________ Copyright © Texas Education Agency, 2014. All rights reserved.
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Technology and Banking Banking App Assignment #2 Student Name: _____________________________ CATEGORY 20 15 8 1 Attractiveness & Organization The brochure The brochure has exceptionally has attractive attractive formatting and formatting and well‐organized well‐organized information. information. The brochure has well‐
organized information. The brochure's formatting and organization of material are confusing to the reader. Writing ‐ Grammar There are no grammatical mistakes in the brochure. There are two grammatical mistakes in the brochure. There are several grammatical mistakes in the brochure. There is one grammatical mistake in the brochure. Graphics/Pictures Graphics go well Graphics go well Graphics go well with the text and with the text, with the text, there is a good but there are so but there are mix of text and many that they too few and the graphics. distract from the brochure seems text. "text‐heavy." Graphics do not go with the accompanying text or appear to be randomly chosen. Knowledge Gained Student can accurately answer all questions related to facts in the brochure. Student cannot accurately answer questions related to facts in the brochure. Writing ‐ Organization Each section in Almost all Most sections of Less than half of the brochure has sections of the the brochure the sections of a clear brochure have a have a clear the brochure beginning, clear beginning, beginning, have a clear middle, and end. middle, and end. middle, and end. beginning, middle, and end. Student can accurately answer most questions related to facts in the brochure. Student can accurately answer some questions related to facts in the brochure. Maximum Points Possible: 100 Student Points: ___________ Copyright © Texas Education Agency, 2014. All rights reserved.
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Technology and Banking Banking PSA Assignment #3 Student Name: _____________________________ CATEGORY 20 15 8 1 Collaboration with Peers Almost always listens to, shares with, and supports the efforts of others in the group. Tries to keep people working well together. Usually listens to, Often listens to, Rarely listens to, shares with, and shares with, and shares with, and supports the supports the supports the efforts efforts of others efforts of others of others in the in the group. group. Often is not a in the group. Does not cause Sometimes is not good team member. "waves" in the a good team group. member. Listens to Other Presentations Listens intently. Listens intently Does not make but has one distracting noises distracting noise or movements. or movement. Content Shows a full Shows a good Shows a good Does not seem to understanding of understanding of understanding of understand the topic the topic. the topic. parts of the very well. topic. Sometimes does not appear to be listening but is not distracting. Sometimes does not appear to be listening and has distracting noises or movements. Comprehension Student is able to Student is able to Student is able to Student is unable to accurately accurately accurately accurately answer answer almost all answer 80% of answer 50% of questions posed by questions posed questions posed questions posed classmates about the by classmates by classmates by classmates topic. about the topic. about the topic. about the topic. Enthusiasm Facial expressions and body language generate a strong interest and enthusiasm about the topic. Facial expressions and body language sometimes generate a strong interest and enthusiasm about the topic. Facial Very little use of expressions and facial expressions or body language body language. Did are used to try to not generate much generate interest in topic enthusiasm, but being presented. seem somewhat faked. Maximum Points Possible: 100 Student Points: ___________ Copyright © Texas Education Agency, 2014. All rights reserved.
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