Modern Banking Services (ATM Services) (JSS 2- Business Studies Lesson Note: First Term, Week Eight)

Week Eight

Subject: Business Studies
Class: J.S.S Two
Week of the First Term: 8th Week
Topic: Modern Banking Services (ATM Services)
Sub-topic: Money Transfer Services

• Western Union
• MoneyGram
• Other Services
  • Overdraft
  • Loans
  • Traveler’s Cheques
  • Bank Drafts
  • Forex (Foreign Exchange)
• Ethical Issues in Banking

Instructional Objectives

At the end of the lesson, pupils should be able to:

1. Explain the different money transfer services available in modern banking, including Western Union and MoneyGram.
2. Describe various banking services such as overdrafts, loans, traveler’s cheques, bank drafts, and foreign exchange.
3. Identify and discuss ethical issues in banking and their impact on customers.

Entry Behaviour

Pupils should already know about basic banking services and the role of banks in the economy.

Instructional Materials

1. Textbooks (Business Studies for JSS 2 by Anjorin Olajumoke Adeola)
2. Visual aids (charts showing different banking services)
3. Flashcards with key terms related to banking services

Reference Materials

• Anjorin, O. A. (2015). Business Studies for JSS 2. Metropolitan Publishers. Lagos.
• Egbe, T., Osu-Nwufo, K. O., Makeri-Yahaya, G. I., & Oladunjoye, T. G. (2015). Wabp Junior Secondary Business Studies Book 2. West African Book Publisher. Lagos.

Content

Modern Banking Services
Modern banking services have evolved to provide various financial solutions to customers. Among these services, money transfer services like Western Union and MoneyGram facilitate the quick transfer of funds across borders.

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ATM Services

An Automated Teller Machine (ATM) is an electronic banking outlet that allows customers to perform basic financial transactions without needing a human cashier. ATM services include:

• Cash Withdrawal: Customers can withdraw cash from their bank accounts using an ATM card and a Personal Identification Number (PIN).
• Balance Inquiry: Customers can check the current balance of their bank account.
• Mini Statement: A short statement of recent transactions can be printed or viewed on the ATM screen.
• Fund Transfers: Some ATMs allow customers to transfer money between accounts linked to the same bank.
• Bill Payment: ATMs in certain locations allow customers to pay utility bills like electricity or water bills directly from their accounts.

Money Transfer Services

Money Transfer Services allow individuals to send and receive funds across locations, both locally and internationally, quickly and efficiently. Two major global money transfer services include:

Western Union

Western Union is a popular money transfer service that facilitates the quick and secure transfer of funds globally. Customers can send money from one location and the recipient can collect it at another location almost instantly. Western Union has a wide network of agents and is commonly used for international remittances.

MoneyGram

Similar to Western Union, MoneyGram is another global money transfer service that allows customers to send and receive funds quickly, both domestically and internationally. MoneyGram is known for its competitive fees and exchange rates.

1. Money Transfer Services

• Western Union: A global leader in money transfer services, allowing individuals to send and receive money internationally.
• MoneyGram: Another significant player in the money transfer market, offering similar services to Western Union, often with competitive fees and exchange rates.

3. Ethical Issues in Banking
Ethical issues in banking include transparency in fees, fair lending practices, protecting customer information, and avoiding predatory lending.

Loans

A Loan is a sum of money borrowed from a bank or financial institution that must be paid back with interest over an agreed period of time. Loans can be secured (backed by collateral) or unsecured (no collateral required).

• Types of Loans:
  • Personal Loans: For personal use such as education, medical expenses, etc.
  • Business Loans: For funding business operations or expansion.
  • Mortgage Loans: For purchasing property.

Traveler’s Cheques

A Traveler’s Cheque is a pre-printed, fixed-amount cheque used as a safe alternative to cash when traveling. They can be exchanged for local currency at most banks or financial institutions abroad.

• Advantages:
  • Secure: Can be replaced if lost or stolen.
  • Convenient for international travel, especially where cash might not be readily accepted.

Bank Drafts

A Bank Draft is a payment instrument issued by a bank that guarantees the payment of a specified amount of money to the recipient. The funds are withdrawn from the issuer’s account, making it a secure form of payment for large transactions such as property purchases.

• Uses:
  • Often used in international trade, property deals, and large purchases.
  • Considered more secure than personal cheques.

Forex (Foreign Exchange)

Foreign Exchange (Forex) refers to the global marketplace where currencies are bought, sold, and exchanged. Banks offer forex services, enabling customers to convert one currency into another for international trade or travel.

• Services Offered by Banks:
  • Currency exchange for travel or business.
  • Foreign currency accounts for individuals and businesses.
  • Hedging services for businesses exposed to foreign currency fluctuations.

Step 1: Introduction

Lesson Presentation (Step-by-Step Procedure)

Others removed.