MIT Project UTECH - A Major Technology Implemented in Jamaica over the Past 10 Years - Technological Development

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Electronic Banking 1

A Major Technology Implemented in Jamaica over the Past 10 Years

Management o Innovation and Technology

Electronic Banking

!ro"p Mem#ers$

%alia Ale&ander 0'0()0*

Yannick +arvey 0,0(')*

-leardo M"rray 0'0,1.1

T"tor/s ame$ Mrs 2ook3ood4 Bro3n

A project s"#mitted in partial "lilment o the re5"irements or the Bachelor o B"siness

Administration degree in Prod"ction and 6perations Management and Acco"nting

7niversity o Technology

8chool o B"siness Administration

8t Andre39 Jamaica



Electronic Banking .

ovem#er ..9 .011

Table of Contents

Ta#le o -ontents.

6"tline o Electronic Banking in Jamaica*

Identiication and +istory*

E4Banking Today in Jamaica*

P"ll and P"sh :actors in the ;evelopment o 6nline Banking(

Market P"ll :actors(

Technology P"sh :actors)

8trategies Employed in the ;i"sion o E4 Banking<

Implications or Management,

Increased Training eeds,

2ed"ction in costs'

=ariations in c"stomer s"pport'

2ep"tations at risk>

Beneits o E4 Banking >

Beneits to the -"stomer10

-onvenience10

It is easier to catch ra"d"lent activity in yo"r acco"nt10

Beneits to Banking Ind"stry11

:"t"re Beneits o 6nline Banking 1.

Appendi&1*

1*

E&ample o ational -ommercial Bank E4 Banking ?ayo"t1(

E&amples o Banks that 7ses E4 Banking 8ystem in Jamaica1<



Electronic Banking *

Bi#liography1,

Outline of Electronic Banking in Jamaica

Identification and History

6ver the past 10 years all Jamaica has seen a vast increase in the implementation o technology

especially 3ithin the #"siness ind"stries 6ne s"ch ind"stry that stands o"t clearly in the minds

o Jamaicans is the #anking ind"stry This ind"stry has revol"tionali@ed #anking 3ith the

implementation o electronic #anking commonly called e4#anking or online #anking

The premise o e4#anking is to e&pand or make it possi#le and easier or e&isting #anking and

payment mechanisms9 primarily #y making many transactions cheaper9 aster9 more sec"re9 and

more convenient To #e dimin"tive9 e4#anking reers to ho3 #anking and payment transactions

are cond"cted rom a remote location9 or e&ample the home or at the 3orkplace9 3hich allo3s

c"stomers to gain access #y the "se o comp"ters

The history o online #anking dates #ack to as ar as the 1>>0s To #e e&act on 6cto#er <9 1>>)

Presidential 8avings Bank in the 7nited 8tates 3as the irst to anno"nce the acility or reg"lar

client "se The idea 3as 5"ickly snapped "p #y other 78 #anks like ells :argo9 -hase

Manhattan and 8ec"rity :irst et3ork Bank In the early phases o online #anking most #anks

"sed a very simple layo"t9 3hich allo3ed "sers to sign in9 see their acco"nts and statements9 then

make transers rom one acco"nt to the other

E-Banking Today in Jamaica



Electronic Banking (

Electronic #anking started in Jamaica aro"nd .00( ho3ever it 3as not "ntil .00> 3hen

signiicant gro3th occ"rred In a J"ne .00> article the Jamaica !leaner reported that online

#anking is gro3ing signiicantly as more c"stomers choosing ree over ees The article "rther

states that the trend s"ggests a direct response to #anks increasing service charges9 3hich

represents #illion in ann"al reven"es or the #ig t3o commercial #anks E4#anking in Jamaica

today is 3itho"t do"#t another road to revol"tioni@ing #ank services Today many transactions

has #een made easy thro"gh internet #anking services in Jamaica incl"ding vie3ing o acco"nts

and statements9 credit card payments9 arrangement or loans9 sending credit transers9 payment o

"tility #ills and set "p direct de#its9 all in j"st a e3 clicks Banks in Jamaica have also managed

to retain the simple easy to "se layo"t1 or online services

%ey players o the introd"ction o these online #anking services in Jamaica are "ndo"#tedly the

ational -ommercial Bank and the Bank o ova 8cotia altho"gh other #anks 5"ickly ollo3ed

Pull and Push Factors in the Develoment of Online Banking

Market p"ll innovations are deined as the advancement o technology9 oriented primarily to3ard

a speciic market need hile technology p"sh innovations relates to orms o technology that

has #een implemented and the need has to #e created

!arket Pull Factors

Traditionally9 cond"cting #anking transactions in Jamaica has #een vie3ed as a tedio"s and time

cons"ming activity -"stomers are "s"ally greeted at #anks #y very long lines res"lting rom

1 8ee appendi& or a sample e4#anking layo"t

http://www.scotiabank.com/jm/cda/content/0,1679,CCDjm_CID2_LIDen_SID2_YID1,00.html

http://www.scotiabank.com/jm/cda/content/0,1679,CCDjm_CID2_LIDen_SID2_YID1,00.html



Electronic Banking )

lack o technology 3hich co"ld improve the speed o the process Another actor res"lting in

long lines in Jamaican #anks is the act that the #anks in Jamaica on average are only open or a

si& ho"r period per day as compared to those in developed co"ntries that 3ork an eight hr day

This leads to a r"sh or individ"als to get their #"siness done As a res"lt o this #anks co"ld

have a red"ction in #"siness9 3hich give more reason or their investment in this innovation

This is 3here online #anking has come in to #ridge the gap ;"e to the market p"ll 3hich

re5"ired longer ho"rs or #anking online #anking is a major sol"tion to this pro#lem 6nline

#anking has #een "sed in developed co"ntries or many years #eore its implementation in

Jamaica 8"#se5"ent its implementation in Jamaica9 individ"als are no longer compelled to 3ait

in long lines since their #anking can #e done .(C,

Technology Push Factors

As it relates to technology p"sh9 #anks are implementing vario"s technologies to "rther

appeal to the p"#lic to "se their services The 8cotia Bank o Jamaica or e&ample has created a

card 3hich is named a 8cene card ith the "se o this card persons 3ill #e a#le to gain points

or transactions they do 3ith the #ank9 #oth online and act"al visits The points earned 3ill

contri#"te to3ards giving them ree tickets to see movies and concession at the snack #ars In

this move 3e are seeing the #ank creating a certain need or this innovation considering the high

costs associated 3ith the cinemaD persons 3ill ind this "se"l and have already #eg"n to "se it

Also9 n"mero"s #anks no3 oer clients to sign "p or their packages online 3hich seem to #e a

aster ro"te to traditionally going in ho"se



Electronic Banking <

"trategies Emloyed in the Diffusion of E- Banking

;i"sion is deined as the process #y 3hich an innovation is propagated thro"gh certain

channels over time among the "nits o a system =ario"s strategies 3ere "sed #y #anks to di"se

e4#anking in Jamaica These incl"de ease o "nderstanding and "se and eicient comm"nication

Banks "ses ease o "nderstanding and "se as a di"sion strategy #eca"se the layo"t o the e4

#anking system is set "p in s"ch a 3ay that it is easily "nderstood #y c"stomers and th"s

c"stomers 3ill not #e easily de4motivated 3hen they are irst introd"ced to the system Inact it

is the hope o #anks that the system 3ill #e so easy to "se and "nderstand that "sers 3ill

recommend it to a riend and th"s aide in the di"sion o the technology Eicient

comm"nication helps to di"se the technology #eca"se #anks constantly comm"nicate the added

#eneits o e4#anking to c"stomers/ in order to pers"ade them to "se the technology Also i

there are any pro#lems 3hile "sing the system there is a c"stomer care n"m#er .

directly on the

3e# page that can #e called immediately

The 84c"rve o di"sion can "sed to ill"strate the di"sion process o e4 #anking The 84-"rve

has o"r stages namely the Emergence phase9 2apid gro3th9 8lo3 gro3th and Mat"rity phase

;"ring the emergence phase the technology 3as rather ne3 and individ"als 3ere not as s"re as

to 3hether or not to tr"st the online system as they 3ere not a3are o its #eneits In act many

individ"als 3ere not a3are o the online system in this phase marketing cost may #e high and

there 3ill #e little or no #eneit #eing accr"ed rom the online system

. 8ee appendi& or e&ample o -B 3e# page 3ith c"stomer care n"m#er



Electronic Banking ,

;"e to eicient comm"nication #y #anks 3ith c"stomers the technology then di"sed to

the rapid gro3th phase 3here more c"stomers are a3are o the prod"ct and th"s are a#le to

red"ce their overhead cost as more persons "se this technology This technology also di"sed to

rapid gro3th phase #eca"se o the gro3th o technology in general as more persons no3 have

access to comp"ters than in previo"s years Maya alrond9 senior vice4president o c"stomer

e&perience at 8cotia #ank arg"es that as more people get access to Internet9 more are "sing e4

#anking as their primary 3ay o #anking It is the easiest o all o"r channels9 even easier than

telephone #anking9 she stated

6nline #anking is yet to enter into the phases o 8lo3 gro3th and Mat"rity in Jamaica as it is

c"rrently at the 2apid gro3th phase as mentioned a#ove

Imlications for !anagement

The phenomenon o internet #anking allo3s c"stomers to cond"ct some or all transactions 3ith a

comp"ter "sing the Internet -"stomers are allo3ed to #ank in their spare time at home9 3ork or

school The option to cond"ct #anking transactions e&cl"sively online has had several eects on

local #anks9 some positive and some negative 8ome implications or management are disc"ssed

#elo3

Increased Training #eeds

The increased need or training is needed as the learning c"rve or Internet "sage changes 3ith

each ne3 development -"stomers oten come into the #ank and ask tellers 5"estions a#o"t

online #anking iss"es or they may call "sing the c"stomer care n"m#er provided online ;espite



Electronic Banking '

the act that specialists can #e reached #y phone9 it is important to management that all

employees 3ho convene 3ith c"stomers have s"icient kno3ledge a#o"t the practicalities and i

possi#le the technical aspects o this technology

Increase in cometition

ith increasing pop"larity o the internet and access to it9 internet #anking has #ecome a primary

eat"re or almost every #ank in the co"ntry :rom the emergence o start4"p #anks9 many

spro"ted "p as online4only #anks9 eliminating many o the costs that traditional #anks have ith

lo3er operating costs9 Internet4#ased #anks are a#le to pass those savings on to their c"stomers

in the orm o higher interest rates9 leading to increased competition or traditional #anks

Management needs to #e a3are o this competition so they can strategically oc"s on gaining a

competitve advantage over competitors

$eduction in costs

Management does not have to 3orry a#o"t "sing reso"rcesD #eca"se internet #anking red"ces

costs or #anks9 as transactions can #e done 3itho"t the "se o paper and 3itho"t any #ank

tellers9 red"cing the need or employees +o3ever more technical persons 3ill #e needed to

monitor this technology

%ariations in customer suort

ith the "se o the Internet9 management can no3 manage c"stomers promptly and eectively

#y creating online s"pport :A data#ases as 3ell as online chat s"pport +o3ever management

m"st monitor these s"pport systems and ens"re they are 3orking eiciently



Electronic Banking >

"ecurity Issues

8ec"rity iss"es are a main so"rce o concern or every person #oth inside and o"tside the #anking

ind"stry 6nline4#anking increases sec"rity risks9 potentially e&posing "p till no3 secl"ded

systems to open and risky environments Both management and sta need to #e proactive in

monitoring and managing sec"rity threats

$eutations at risk

This is considera#ly heightened or #anks "tili@ing the Internet :or e&ample the Internet allo3s

or the rapid di"sion o inormation 3hich in t"rn means that any incident9 either good or #ad9

#ecomes common kno3ledge 3ithin a short space o time The rate o the Internet considera#ly

c"ts the optimal response times or #anks to any incident Any pro#lems e&perienced #y one

irm in this ne3 environment may inl"ence the commerce o another9 as it may #ring to

5"estion9 conidence in the Internet as a 3hole 8o9 there is conse5"entially a risk that one rog"e

e4#ank co"ld ca"se major pro#lems or all #anks providing services via the Internet This ne3

type o "niversal risk ca"se major concern to e4#anking providers 6verall9 Internet "sage places

importance on rep"tational risks Managers need to #e certain that c"stomers/ rights9 inormation

and privacy needs are s"iciently protected and provided or

Benefits of E- Banking

There are n"mero"s #eneits to #e derived rom electronic #anking These incl"de the #eneits to

the c"stomer9 #eneits to the #anking ind"stry and "t"re #eneits




Benefits to the &ustomer

Convenience

Thro"gh Internet Banking c"stomers can operate their acco"nt 3hile sitting in an oice or home

There is no need to go to the #ank in person or s"ch matter Also most services that are "s"ally

availa#le in the physical #ank can #e o"nd on a single 3e#site only a mo"se click a3ay Internet

Banking is availa#le .( ho"rs a day9 seven days a 3eek th"s c"stomers can do transaction in

their o3n time instead o #eing restricted to physical #anking ho"rs o matter 3here yo" are or

3hat time it is9 yo" can easily manage yo"r money

It is easier to catch fraudulent activity in your account

ith the a#ility to vie3 yo"r acco"nt at anytime it is easier to catch ra"d"lent activity in yo"r

acco"nt #eore m"ch damage is done As soon as yo" log into yo"r acco"nt9 yo" can check yo"

acco"nts statement to see 3hether there is anything amiss I anyone 3rites a check or 3ithdra3s

"nds rom yo"r acco"nt and yo" kno3 it 3asnt yo"9 yo" 3ill see it right a3ay This lets yo" get

started on correcting the pro#lem immediately rather than having to 3ait a month "ntil yo"

receive a physical statement or "pdate yo" #ank4#ook to even have a cl"e it is happening as

3o"ld #e the case 3ith a traditional #ank

Internet banking costs less

;"e to the lo3er overhead cost associated 3ith online #anks s"ch as less involvement #y

salaried employees #ank inc"r savings tho"gh e4#anking These savings allo3 them to oer




higher interest rates on savings acco"nts9 lo3er lending rates and service charges or online

transactions 8ome #anks even oer ree #ill paying services to enco"rage their c"stomers to do

their #anking online

Internet banking account is simple to open and use

There is "s"ally a very simple layo"t* or internet #anking Yo" j"st enter a e3 ans3ers to

5"estions in a orm 3hile sitting comorta#ly in yo"r o3n home or oice to create an acco"nt

To access yo"r acco"nt9 yo" esta#lish sec"rity meas"res s"ch as "sernames and pass3ords

There is also a .( ho"rs c"stomer care service representative j"st a phone call 3aiting to ans3er

yo"r 5"eries

Benefits to Banking Industry

Banking ind"stry has also received n"mero"s #eneits d"e to gro3th o E4Banking inrastr"ct"re

There are highlighted #elo3$

The gro3th o E4#anking has greatly helped the #anks in controlling their overheads and

operating cost

Many repetitive and tedio"s tasks have no3 #een "lly a"tomated res"lting in greater

eiciency9 #etter time "sage and enhanced control

The rise o E4#anking has made #anks more competitive It has also led to e&pansion o

the #anking ind"stry9 opening o ne3 aven"es or #anking operations

* 8ee appendi&



Electronic Banking 1.

Electronic #anking has greatly helped the #anking ind"stry to red"ce paper 3ork9 th"s

helping them to move the paper less environment

Electronic #anking has also helped #ank in proper doc"mentation o their records and

transactions

The reach and delivery capa#ilities o comp"ter net3orks9 s"ch as the Internet9 are ar

#etter than any #ranch net3ork

Future Benefits of Online Banking

Technology Integration4 As technology integrates the online #anking system 3ill #e re4

invented in Jamaica to prod"ce a more advance system s"ch as mo#ile #anking This may

#e done 3ith the integration o a major cell phone company and a #ank :or e&ample in

the 7nited 8tates Apple ?td integrated 3ith -hase Bank to oer -hase #anking

applications on their cell phones

!lo#alisation4 As the 3orld #ecomes a single glo#al market persons 3ill #e a#le to "se

online #anking to transer cash rom #rand o #ank to the ne&t Persons 3ill #e a#le to

cond"ct #anking transactions rom any3here in the 3orld 3itho"t hassle an in their o3n

convenience



Electronic Banking 1*

'endi(



Electronic Banking 1(

E(amle of #ational &ommercial Bank E- Banking )ayout

Corporate Banking

INTERNET BANKING -Corporate Login

CorporateInternetBanking

To sign in to online banking,

enter your Corporate ID, UserID and Signon password inthe fields provided.

Trouble Signing in?

1. Make sure your Caps o!kkey is off.". Che!k for !orre!t spelling.#. Call us toll free at 1$%%%$&C'$(I)ST

*1$%%%$+""$#--or e$/ail us

at n!binfo0n!b.!o/

Customer Care Centre

2lease !onta!t our Custo/erCare Centre and we will showyou how, at the Cli!k of a/ouse, you !an !ondu!t yourbanking transa!tions se!urely,fro/ anywhere in the world.

(or /ore details 3Call us toll free at 1$%%%$&C'$(I)ST

*1$%%%$+""$#--or e$/ail us

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Electronic Banking 1)

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To sign in to online banking, enter your User ID and2assword in the fields below.

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Login Clear All Fields Forgot your Passw ord?

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2lease !onta!t our new Custo/er Care Centre and we will show youhow, at the !li!k of a /ouse, you !an !ondu!t your bankingtransa!tions se!urely, fro/ anywhere in the world.

Cli!k here to see what elink !an do for you

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Ter/s and Conditions

http://www.jncb.com/

http://mm_openbrwindow%28%27https//retail.ncbelink.com/misc/pop.htm','ELINK','width=280,height=350')

https://retail.ncbelink.com/misc/FAQs.htm


http://www.jncb.com/docs/NCB_eFinancial_Services_Terms_and_Conditions.pdf



http://mm_openbrwindow%28%27https//retail.ncbelink.com/misc/pop.htm','ELINK','width=280,height=350')





Electronic Banking 1<

E(amles of Banks that *ses E- Banking "ystem in Jamaica

There are n"mero"s #anks in Jamaica 3ho engage in online #anking in Jamaica These incl"de

the ollo3ing$

Bank o ova 8cotia4

ational -ommercial Bank4

Jamaica ation B"ilding 8ociety4

:irst -ari##ean International Bank4

2B- 2oyal Bank4



Electronic Banking 1,

Bi+liograhy

1 Bain#ridge9 2ossF.00<G History of Online Banking 2etreived rom http$CCE@ineArticles

comC.,00,) on ovem#er .09 .011

. -ollinder9 Avia F.00>G Online banking grows- more customer choosing ‘free’ over

‘fees’ 2etreived rom

http$CCjamaicagleanercomCgleanerC.00>0<.'C#"sinessC#"siness1html

* Online Banking - The Evolution Of Online Banking, Lukewarm ustomer !es"onse -

Banks, #ervices, $eb, an% &inancial 2etreived rom

http$CCecommercehostipinoCpagesC'0CBanking6nlinehtmlHi&@@1eM%Yn<>

( http$CCecommercehostipinoCpagesC'0CBanking46nlinehtml

) http$CC333jnc#comC

< http$CC333scotia#ankcomCjmCcdaCinde&C099?I;en900html

, http$CC333#ankersonlinecomCtechnologyCg"r"stech0'1'0*dhtml

' http$CC#ooksgooglecomjmC#ooksidK&>AE(55jo-LlpgKPA)*Ld5Konline.0#anking

> http$CCecommerce4jo"rnalcomCne3sConline#ankingservicese&pansioninjamaica

http://jamaicagleaner.com/gleaner/20090628/business/business1.html

http://ecommerce.hostip.info/pages/80/Banking


http://www.scotiabank.com/jm/cda/index/0,,LIDen,00.html

http://jamaicagleaner.com/gleaner/20090628/business/business1.html

http://ecommerce.hostip.info/pages/80/Banking


http://www.scotiabank.com/jm/cda/index/0,,LIDen,00.html

Documents

MIT Project UTECH - A Major Technology Implemented in Jamaica over the Past 10 Years - Technological Development