O-LevelCommerceBanking7100/22 · May/June 2021 · Q413 Marks

Banks offer a number of electronic banking services to their customers, including ATMs and internet banking.

(a)(i)State three bank services a customer can access using an ATM.[3]
(a)(ii)Explain two advantages of internet banking to a customer.[4]
(b)Discuss whether moving towards a cashless society will benefit consumers when buying goods and services. Give reasons for your answer.[6]

Mark scheme

Marking points from the official mark scheme (May/June 2021). The mark or mark type is shown in brackets.

4(a)(i) 3 Withdraw cash
Obtain a receipt
Balance enquiry
Check/ print statement
Deposit
Transfer money between accounts
Make payments/pay bills
Top up mobile phones
Apply for loans
PIN change / unlock PIN
4(a)(ii) 4 Convenient (1) banking can be done at home / can access balance / view transactions / make payments (1)
Saves money / travel costs (1) No need to spend money on transport to visit the bank (1)
Saves time (1) no need to wait in a bank queue / travel to a bank / can make transactions quickly (1)
24/7 (1) transactions can be carried out anytime / no need to wait for bank opening hours (1)
Can be done anywhere (1) with an internet connection (1)
Cheap/quick transfer of money/payments (1) compared to traditional payment methods such as cheques or bank drafts (1)
Can bank on the phone (1) with mobile app (1)
Ease of use / no need to fill out forms (1) complete payments into and out of your account with a few simple clicks (1)
Higher saving rates may become available to customers (1) because banks have lower overhead costs so be able to pay more interest out (1)
4(b) 6 Up to 2 marks for describing a cashless society
Up to a further 2 marks for analysing whether a cashless society will benefit customers
Up to a final 2 marks for evaluating whether a cashless society will benefit customers
Cashless society is consumers buying goods and services using electronic methods of payment.
Arguments for a cashless society: Transactions at time of payment are faster and more accurate; Essential for online shopping; No need for currency exchange while travelling internationally; Less crime as there is no tangible money to steal
Arguments against a cashless society: Exposes personal information to a possible data breach; Hackers may take money and there will be no alternative source; Technology problems can leave you with no access; Those without bank accounts will be unable to make transactions
Evaluation: The ease and convenience of conducting financial transactions is probably the biggest motivator to become a cashless society. Consumers will no longer need to carry cash, plastic cards, or even queue up for ATM withdrawals which will make their lives easier / waste less time. However, the trend towards a cashless society will depend on people's willingness to adapt to digital methods of payment and as many people do not like change, it will not benefit consumers who still prefer to pay in cash or do not have a bank account.