1. a system whereby bank customers can perform certain transactions, such as transferring money between accounts or paying checks on a regular basis, without having to visit a bank branch. This system is often operated using touch-tone telephones, which allow transactions to be carried out automatically. It can also be operated as branchless banking. Under this system, customers can use the telephone to apply for an overdraft facility or for a loan, which can be granted or refused without completing a credit application. Telephone banking services are often offered to an affluent clientele and are a good example of business segmentation.