Electronic Funds Transfer in Perspective

Summary

Future developments in electronic funds transfer (the transfer of computer based information instead of money) and in automation in banking are generally thought to have significant implications for the development of telecommunications. However, discussion is often confused regarding the supposed move to a cashless and chequeless society. The paper summarises the developments taking place in the banks’ money transfer systems and in related systems. The physical movement of cash, cheques, etc. is being slowly but progressively replaced by the movement of information between computers. The implications for telecommunications of electronic funds transfer itself may not be as significant as generally supposed; the implications of the social, technological and economic changes giving rise to electronic funds transfer may be more significant.