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Chapter11.1:Introduction
Withtheinnovationthatbeenta
ingplaceinthetelecommunication,relatedtechnologiesintheinformationprocessing
nownas"informationtechnology"thesewouldoftenhelptofuelthestronggrowthformanyeconomies.Evenban
ingindustrywasnotsparedbythischange.Todaywecannotimaginethebusinessworldwithoutinformationtechnology.Theretailban
ingindustryparticularlyhasbenefitedalotfrominformationtechnology(Berger,A.N.(2003).During1952torecenttimesarevolutiontoo
placeintheban
ingsector,wherepeopledepositedtheirmoneyintotheban
sthatwas
eptsafeandcouldbeaccessedonlythroughachec
ordraft.Buttodaythetractionscanbedoneonlinewithinsecondsthetransactionsaredone.Theban
ingindustrywasadaptingtothischange.Almostalltheban
sstartedtoseetheimpactsontheoperationsinthenewban
sinthecountry.Theban
shadalargearrangementofinformationtechnologyintheirbusinessfunctioninganditprovedoneofthebiggestadvantagesofinformationtechnology.Initially,ban
ingwasdonepersonallywherethecustomerhadtotraveltotheban
toeithergettheinformationordothetransaction.Intheban
everythingwasdoneonpaperthatistheledgerboo
sformaintenanceofaccounts,ta ingcustomerinformation,chec s,receipts,inandoutboo maintenance,transferofmoney.Retailban
ingisaverybroadandalwaysrelateswiththecommercialban
salsowithindividualcustomersasinthebalancesheetitshowsboththeassetsandtheliabilities.Fortheliabilitiesitdealswithsavingsorcurrentorfixedaccountsalsotheloansandmortgagesli etheeducational
orhousingorthepersonalloanfortheassetssideastheseareveryimportantproductsthatareofferedbytheban
s.Thisalsohasservicesthatincludethecreditordebitcardsortheservices,whicharerelatedtodeposits.Retailban ingisnothingbutprovidingservicestoboththecustomersandthesmall-scalebusinesses,whicharehavinganumberoftransactionsoflowvalue.Thisisverydifferentwhencomparedwiththenormalban
ingwherethecustomersarelargeinnumberli
ethegovernmentsorbigenterprisesorthemultinationalcompaniesthatdealinsmallernumberswithahighvalueinthetransactions.
Lendingandretailban
ingbothareconsideredmanyatimeassynonyms,butitisassumedtobeapartofretailban
ing.Thecustomersaregivenpriorityinasmoothwayinthisretailban
ing,anditismainlydividedintothreeimportantformsandtheyareasfollows:themultiplegroupsofcustomerseitherbeitfo
rsmallbusiness,consumerorcorporate.Themultipledistributionchannelsli
ethebranch,callcenterandInternetandthelastoneisthemultipleproductli
ethesecurities,creditcards,insuranceanddepositsandinvestments.
Apowerhasrisenupinthegovernmentgreaterthanthepeoplethemselves,consistingofmanyandvariouspowerfulinterests,combinedinonemass,andheldtogetherbythecohesivepowerofthevastsurplusinban
s.Thechangestartedveryslowlywithpreliminarysoftwaresorthedatabaseforthemaintenanceoftheirdatainthebac
ground.Andgraduallyitstartedtogrowandimportanceofinformationtechnologywasincreasing(Hotelling,H.(2009).Itwasusedineverysectoroftheban
.Theyintroducednewtechnologiesandmadetheprocessmorecustomerscentricandwitheachnewtechnologytheban
receivedgreatappreciationfromtheircustomers.Forverysmallinformationthecustomerhadtotraveltot
heban
butaftertheinformationtechnologycameintoexistencethetransactionbecomeveryeasy.Towithdrawortodepositmoneythecustomerhadtowaitforhisturn.Butinformationtechnologyhascomeupwithasolutionforthisproblemtheyintroducedthetellermachinewhichisan"AutomatedTellingMachine(ATM)".Inwhichthemoneyisstoredandatthesametimecustomercangethisaccountinformation.TheyintroducedtheplasticcardscalledastheDebitCard.Thiscardcangiveaccesstothecustomertoeitherwithdrawordepositmoney,getinformationaboutisbalanceallthisbyfollowingfeweasysteps.Andtheban
shavealsoconcentratedmoreonthesecurityissuesalsowherethecustomerwouldnothavetoworryaboutmisusingofhis/heraccountinformation.Thecustomers
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gothabituatedwiththesetechnologyandtheystartedtowithdrawmoneyonafrequentbasis.Andthemanyotherapplicationswereintroducedintheban
ingsectorbytheinformationtechnologyli
etheonline,mobileservice,SMSservice,electronicauthenticationandelectronicsignatureservices(Rohlfs,J.(2004).Andtheban
ingindustryhasalsota
encareofthesecurityasitplaysavitalrolewhenthetransactionsarethroughtheInternet.AsecuredsiteisprovidedtothecustomertoperformhistransactionsthroughtheInternet.Nootherindustryhasgainedprofitfromthisastheban
ingsector.Asinthemiddleofaneconomicfallandthereformingofthefinanciallegislationtotheban
ingindustryinthepastfewyearstheimpactoftheseinformationtechnologiesinnovationsonthecustomerbehaviorwasveryhuge.Theinformationtechnologyhasintroducednewwaysofdeliveringretailban
ingtothecustomersandhenceretailban
shavefoundthemselvesattheadaptationoftechnologyforpastdecades.
Themainquestionrisesisthattheretailban
customersareabletoli
ethistechnologyservicesaremoreinterestedabouttheoldertraditionthathadaban
ingstaff spersonaltouchtoit.Astheservicesthatthecustomersreceivearegivenbytheban
sareafterwor
inghours,thehelpisavailabletothecustomer24/7,withgivenaccuracyandreliabilityandatlowcost.Thesehavebecomeimportanttotheretailban customerswhencomparedtothetraditionalsystem.Thenewimprovedtechnologicalhelpthattheban
saregettinghavebecomeveryfamousamongtheircustomers(Milne,A.(2006).
Withtheretailban sreputationintheban ingindustryithastothin ofnew
strategiestosatisfytheircustomersandalso
eeptheirloyalty.Understandingwhataretheimportantpointersaboutthecustomersthatwould
eepthemsatisfied.Meetingthecustomersexpectationshouldbethefirstthingto
eepinmindoftheban to eeptheloyaltyofthecustomer.
Everyone
nowsthatcustomersaremore
nowledgeableandmores
epticalthaneverbeforeandthatintoday senvironmenttheydoalotmorehomewor
beforecommittingtoaban sservice.Manyconsumerswillchec productsandpricesonlinebeforema
ingadecisionaboutwhattopurchase.HSBCprobablyhasabusinessobjectivetodrivemoretransactionstoitswebsitewhichisunderstandable,butifyouwanttomaintaintrust,youwanttomaintaintrust,youshouldaimformaximumtransparency(Shu,W.andStrassmann,P.A.(2005).
Intheretailban
ingindustrytheyhaveseenaspeedygrowthduetotheWebthatiscreatinggreatopportunitiesforthenewbusinessesintheretailban
s.Anditalsoshowsanimportantmethodtoseeavailableban
ersinthemar
et.Expertsestimatesthatconsumeruseofon-lineban
ingserviceswillincreaseover20foldbytheendofthecentury.Geographyandthenumberofbranchesbecomeirrelevantandcommunityban
sareabletoofferthesamelevelofserviceandconveniencetocustomersasthelargestban
s.Inthepastover60%ofexistingban
customershavecitedban
selectiontobebasedonconvenienceoflocation.Forthecustomersoftoday,convenienceoflocationincludestheavailabilityof24-houraccessviatheInternet.Currentprogressesunderelectronichavemadethegrowthunderelectronic-basedself-assistance(etal.2003Dabhol
ar).Thesegrowthsaremodifyingthemethodwithwhichassistancebusinessanduserscommunicationsareincreasingthehostof
thestudyandprocedureproblemswithrespecttothereleaseofe-assistance.E-assistanceisevolvedintohighlysignificanttoevaluatethefailureorsuccessoftechnologicalbusiness(etal.,2001,Yang),yeteventogivetheuserswithgreat
nowledgeregardingthecommunicativesurgeofdata.Theeconomicalmethodthroughouttheglobehasbeenexperiencingmanymodifications.Achievementsandalliances,liberalism,enhancedrival,modifieddatamethodsandelectronics,andmanmeanswithdistincttalentsaresimplysomeimpactswhichareeffectingtheban
ingcommerce(Pereira,1995).Electronicistheprogressingmovingimpacttoday,indistinctorganization.Asaresult,Itisessentialtoreviewtheinterestsunderelectronicandtheirscope
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intheban
commerce(1994,WalterandSaunders;1994,SethiandKing).Thisisspecificallysignificanttodeterminetheelectronicwhichisthelabourexhaustiveactions,decreasingassistanceandfunctioningrate,enhancedassistancestages,andenhancingtheaffectivityandrivalryoftheUKeconomicaldivision.Electroniciscreatedbasedonfindingsintechnology,itemenhancementanddevelopmentinapparatus,method,andautomationanddataelectronic.Even,thiscontainsthemixofdata,experience,andconcepts(2003,Murungi).Thereviewsneedtheextensiveresponsibilityoftheinteractionsamongassistancecharacter,userfulfilment,andeconomicalaccomplishmentwhereface-to-facecommunicationbetweenuserandwor
erandisthemeretarget.Currently,asaresult,theelectronicspossessunusualeffectonthedevelopmentofassistancereleaseselections(2002,BagozziandDabhol
ar).(1994)Dabhol
ardeclaresthatiftheuserisinimmediateinteractionwiththeelectronicthenthereislargeroperationli
ewithwebban
ing.Nevertheless,whenthereisnodirectinteractionli
ebyphoneban
ing(becausetheelectronicisnotapparenttouserswhocanmerelypressthephonenumbersovertheir
eypadoftelephone)thisisthoughtthatthereislowpowerobtainedovertheuserintheprocessofthistransaction.(1985)Batesonhasmademanynumbersofreviewsontherequirementforcostumerstogetthepowerintheprocessoftheassistanceencounters.Iftheuserselectsindependentlytoutilizetheelectronicli
ethemethodofassistancerelease,thenthescopeislargeintheformoffeatureattributes.Afewofthefeaturedeterminations,whicharelargelyessentialtousers,areproductivityandaccuracy(2000,Bateson).Assistancefeatureareidentifiesli etogettheabilitytoreleasetheprocedu
raladvantagesli
eenhancedusercustodycostsandthereforetoincreasethefunctionalproductivityandincome(2001,Rustetal.;2003,Cronin;2003,Zeithaml.etal).Oliveira(2002)proposedthate-assistancefeatureisbetweentherivalabilitiesoftheindustrywhichresultinfirmaccomplishmentandMenorandRoth(2003)loo
attheproblemstoexecutetheassistanceelectronicande-assistancesli
etheimportantunderassistancefunctionsandWardandAl-Hawari(2006)showsassistancefeaturescopesonuserfulfilmentthatresulttoinfluencetheeconomicalaccomplishmentofban s.ElectronicandAssistanceQualityTheconceptionof,andquic
progressesin,electronic-basedforms,mainlytheonewithrespecttotheInternetresultsinimportantmodificationsunderthewayoftheindustriesthatcontactwithusers(Zin
hanandParasuraman,2002;2005,Baueretal.).Thisfashioniswellorganizedintheassistancecompanyandthe
assistancegiversaredisputingtoexchangeinelectronictoprotecttheirfuturein2012,ontheApril12technologicalperiod(2005,Prybuto
andZhang;2005,Baueretal.).Thedisputefirmatmosphereundertheeconomicalassistanceretailhasevenleadundermorestressonban
stoenhanceanduseotherreleasedplatformswithaloo
toimpressmanyusersandenhancetheunderstandingofusersandenergizethesincerity(2005,Baueretal.;2005,LeeandLin;2005,Parasuramanetal.).Betweenmanycurrent-releasingplatformsorientedistechnologicalban
ing.Underitseasymethod,thetechnologicalban
ingimpliesthesuppliesofdataoftheban
anditsitemsoverthewebsiteoftheInternet.Theimplementationofuserfriendlyelectronic(li
ethemenumovingtheautomatedtellerdevices,phone,andInternetban
ingassistances)li
ethesourcesofreleasingtheban
ingassistanceandevolveintothegeneralplaceundercurrent
decadesli
ethemethodofsustainingtheusersincerityandenhancingtheretailinvestment.Thecommonbric
andmortarban
sma
euseofelectronictoobtaintherivaldisputearrangedoveronlineban
sandalsotheconcepttodecreasetherateofgivingassistanceswhichwerereleasedinclusivelyoverpersonnelban
(2003,Josephetal.).Virtually,organizersandcompaniescomprehendtogivethefeatureuserassistanceanditistheimportantprocedureelementunderbusinessincome.Thesignificanceofassistancereleaseanditsscopetoenhancethefulfillmentandcustodyofusers,enhancingtheinterestsandretailinvests,andenhancingthealliedp
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icturearenotexaggerated(1994,Lewisetal.).Li
emanyalternativeassistancegivers,theban
sdogoonrapidlytoadvanceinelectronicli
ethemethodoffunctioningtheratesandimpressmodernusersandobtainthefacilityandelectronicnoveltypossibilitiesoftheirabidingusers.Assistances,overdescription,areindefiniteandsimplycopied.Theyaresplitunderassistancesofhigh-techorhigh-touch.High-touchassistancesaremainlyrelyingonthepublicundertheassistancemethodtoformassistance.High-techassistancesareimportantdependingontheutilizationofautomatedforms,dataelectronicandalternate
indsofphysicalmeans.Nevertheless,onemustalways
nowthatevenhigh-touchcontainsthephysicalmeansandelectronic-basedformswhichshouldbefunctionedandmergedintotheassistancemethodundertheuser-orientedtrend(Gronroos,2001).Hence,underthisreview,theelectronicban
ingassistancecontainsbothhigh-touchandhigh-techassistances.Forinstance,high-techassistancecontainsShortMessagingService/Internet/Telephone(SMS)andATMdevices.High-touchassistanceincludesguidanceandpersonnelservicestoutilizetheassistances.Featureisdistinctandisrootfromthepossibilitiesofusers.Thus,itisimportanttorecognizeandplanoutthepossibilitiesforassistanceandcombiningthesepossibilitiesundertheformtoenhancetheassistancefeature.Executinganddeterminingassistancefeatureisveryimportantmethod.Thefeaturehasbeendescribedfromdistinctoutloo
sandintroductions,basedonthehumancreatingthedescription,thecalculationusedandtheframewor
underwhichitisaccomplished.Thishasbeenmentionedli
ethebestagreementneeds1995,watermanandPeters)benefitsofhealth(JuranandGryana,1988),value(Feig
nbaum,1995)andgettingand/orincreaseduserpossibilities(Parasuramanetal.,1988).Sometime,theusersrequestfeaturesfaceandtheiroutcomeattitudeiscopiedintheformofbehaviouragainstconsumptionattitudethatresultedtheresearchersandidentifiertothefeatureli everyessentialdeterminationforunendingformofsurvivalandaccomplishment.Featureundertheassistancefunctionisbasicallymadeatthetimeoffact(1989,Carlzon)and(2001)Gronroosimpliesitli
ethetimeofchancewherevalueisincludedtoobtaintheassistancefeature.Nevertheless,assoontheuserleaves,thenewtimeoffactshouldbemadeli
etheassistancerecovery(1990,Hartetal.)toma
ethecorrectionpriortheissueformed.(1993)Vandermerwemovesaheadtosayunderassistances,providingandthewor
ersarenotseparated.Ban
sincludegreatimplementationassistancereleaseelectronicli
ethemethodofimprovingtheassistances,whichiscommonlygivenbyban
personnel.Execut
ionoutcomesbothbasedontherequirementtodecreasetheratetoreleasetheassistancemainlybypersonnelandthecomplementshouldobtainthedisputearrangedbyelectronicchangerivalries(BoyersandLederer,2002).Modificationundertheban
ingcompanyli
etheoutputfromliberalism,quic
worldweb,andtheincreaseinownpropertyhavehencecreatedtheexecutionofdelicatereleasemethods(forinstanceban
ingonlineandtelephone,automaticwebsiteandremotetellerdevicesandsoon)theprocedureneedsunderseveralsituations(1994,Lewisetal.).Theissuewithelectronicunderassistancesisthatitistheabilitytocreatethetimeoffacttheautomatic
nowledge,deficiencyinfeeling.Fortheusertobefulfilled,eachshouldhavethechargetoassisttheuserinthemanagement.(1995)Berrydiscussestorivalfors
illunderwor
erstoarrangetheincreasedstandardsandtoremainonstandardsandthereforeParasuraman(2002)underlined
thesignificancetogettheaimandsynonymstowor
ersandwor
sandtostrengthenthemwithoutanyris
ofrevenge.Moreover,modifyingthemanagementmethodtoenergizethewor
erstoacceptthecorrectfirstmomentintellectualisimportant(2000,Oa
land).Therefore,thetrainingissignificantandevenitisexpensiveand
eenaccomplishmentandshouldprovideli
eitisabletoassisttoenhancethemethodorganizationandalsotogettherequirementsandpossibilities(2000,Oa
land).Electronicisabletoassistthepublictosatisfytheirneedsveryproductivelyandyettheindustryisyetthemerelyasbestasitswor
ers(2001,Gronroos).Theissueexiststorecognizethesinglepersonandinspirethedeterminationsand
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controllingtheminthecorrectpath.Itdoesnotbotherwhichassistancereleaseisutilizedandtheassistancegiver/assistancecostumerinteractionsshouldbedisciplinedateachrate.Manyusersmoveonlinetosatisfytheirassistancerequirementsandthemorerate-productionandscalablethefirmdesign(2003,Schultze).Thisorganizationamongassistancefeatureandfirmaccomplishmentdoesmovetheinterestine-assistance,onlineassistance,andwebmar
eting.Thisinvestmenthasbeenlaterenergizedovertheproofofless-assistancecharacterinafewframewor
s(Zeithaml,2002;Boyeretal.,2002).Zeithaml(2002)recognizestherequirementforfirmstotargetonthee-assistanceundertheire-firm,andtocomprehendthesignificanceofe-assistancefeatureli
ethedistinctprocedure.EvenfirmsshouldidentifythattheInternet
nowledgeshowsthetagtobeplaceononlineuseranditmightbesignificantcomponentundertheorganizationoffaithandinteractionswithusers(Zeithamletal.,2002,Yang,2001).TechnologyintheBan
ingIndustryWiththegrowthinthetechnologyElectronicgrowthshavedeletedtheduplicationandtimeta
enactionsanddecreasethemanmista
esandincreasedtheentrytoban
ingconvenience.Also,electronicgivesdatatotheuser,whichwillbeverycostlytogiveonthebasisofperson-to-person.Telephoneban
ingconveniencepermitsthenon-fundtransactionstobeta enplaceandthenwillneedtogotothebranchprior.Inthesameway,theInternetban
ingpermitstheuserstodotheactionsatamomentandundertheportion,whichissuitableforthem.(2002)Dabhol
arproposeswhichdirectlyinteractwithsuchelectronicalsoprovidestheusersli ethe
senseoflargeoperation.(2007)Smithisoftheview,whichelectronicwasorientedunderban
sbasicallytodecreasetherateandyetoverclassifyingfunctionsoffrontandbac
officeandtheelectronicfocusedtoincreasethedistinctoperations.Nevertheless,thethin ingyetremainsli etosustainthefulfillednumberofface-to-facecontactswiththeusers.(2004)Rogersrecognizedfivefeaturesorqualitiesofnovelty,whichinfluencethecostatwhichnoveltiesareaccepted(andfinallytheirusefulmethods):theirappropriatebenefit,affinity,interaction(observability),complexity,distinction(trialability).Moreover,thequalitieswerefurtherincludedandobtainedthethreatandeconomicalandsocialrate(2005,Zeithaml).Undertheclassificationofassistancesunderelectronic-basedassistancereleaseselectionsDabhol
ar(1994)proposesmanyparticulardivisions,whichwoulduseforthecompaniesforemployingtheelectronicbasedassistancerelease.Thed
ivisionrecognitionswhoreleasetheassistance,thatis,theperson-to-person,underwhichthewor
erma
esuseoftheelectronicorusertoelectronicli
eutilizationofanATM.Thesecondclassificationviewsontheassistancereleased.Ifatallthewebsitesofassistancebusinessthenatthehomeorofficeoftheuserorneutralwebsiteli
ethelocationofanATMavailableatanairport.Theultimateclassificationviewsattheinteractionoftheuserwiththeassistancefunctionfordirectorindirectli
eunderthesituationoftelephoneban
ing.(1994)Dabhol
arcontractsthattheremustbeadaptabilityunderthemodeloftheelectronictopermittheuserstocreatemodificationintheprocessofthetransactionandma
epresentfortheuserassistanceadviserwhenneeded,withdecreasedstay.Itevenincreasesthemodelproblemofenoughselectionsforwebban
ersandATM/Telephone.Undermanysituations,thetransactionhappensinastableplaceandthepresenceofthewor
erdonotalwaysbepossiblebecausethese
conveniencessometimefunctionperdayfor24hoursandsevendayswee
ly.Constantdevelopmentsunderthedataelectronicallowedtheban
stogivetheirassistancesunderadirectmethodtobesuitablefortheiritemsinagoodwayfortherequirementsofclienteles.Eventhough,ban
ingistheexperiencedfirmandthedatatechnologywasbasicallyutilizedtomonitortheadministrativemethods.Themovementfromcontrollingtoinformationbyma
inguseofdataanditssurgetointimatetheorganizerstogivethechanceto
nowtheattitudeoftheuserandreplyatthecorrectmoment.Thechasingformreferstothemethodoralternateformoftechnologicalban
ing:
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Theban
ingpersonalcomputer(PC),virtualban
ing,onlineban
ing,homeban
ing,andphoneban
ing,Internetban
ing,remoteelectronicban
ing.TheInternetoronlineban
ingandPCban
ingareverysometimeutilizedforlabel.Nevertheless,thismustbecited,thatthewordsutilizedtomentionthedistinct
indsoftechnologicalban
ingareutilizedcorrespondently(2003,Dir
deVilliers).Internetban
ingisassumedtorevolutionizeandchangethecommonban
ingcompany(Mols,2000).Ban
ingassistancesaresimplymechanicalanddigitalizedandhencebasedonfunctionaloutloo
,theylendthemselvestotheweb.Theabilityofrivalbenefitofthewebforban
soccursinthefieldsofdecreasedrateandfulfillmentofuserrequirements.AsperSiauetal.(2001),m-business(mobilebusiness)containsWAPandincludesafewofthequalitiesofmobilecommercethatcontainUbiquity.Mobilecommerceallowsthecustomertogetthepermissionforthedateandtheyareexpectingthecustomerunderpersonalization,thecellularbroadcastfield.Becauseoffewofthememoryabilityofthemobilehardware,thesoftwareallowsthegooddegreeofsolvinganddividingtogettherequirementsofmobilecostumers,adaptability.Themovementofthehardwareforinstancethecellularhandsetsallowsthecustomerstohavethetransactionsand/orgetthedatawhenthecustomerisbusyinalternatetas
li
efunctioningortravellingordissemination.AutomatedTellerMachines(ATMs)areevencalledastechnologycashdeviceandtheelectronicdeviceallowstheusertogetthepaperamountorgoingwithalternateban
ingtransactionsafterinserting(msn)theencodedplasticcard.Automatedtellermachines(ATMs)useofconvinceswhichATMsgive.
Thepresentban
ersareconcentratingonhowthecustomerswilltransactanditalsoshowstheirtraditionalban
sagainsttheironlinechallengers.AccordingtoFletcher sResearch"around200,000peopleintheUKarealreadyban
ingonlineandpredictedsevenmillionwouldbeby2002."AccordingtoVernon(1999)withtheInternettheban
ingbrandsshouldfacethecompetitorstoattracttheircustomers,whichwillbehardtofocusduetopressure."Bytheyear2005twobillionpeoplewillbeontheInternetrepresenting90%ofthebuyingpowerontheplanet."1.2ResearchObjectives:
Theresearchobjectivewillshowthepurposeofthisdissertation.Thefiveobjectivesareisasfollows:Toevaluatetheban
ingindustrywithITandSecuritysystems.
ToanalyzecustomerlevelsatisfactionbeforeandafterITimpactonban
ingindustryTounderstandhowtheITchangedtheban
ingindustrypresentandfuture.Toreviewthemajorchangesinban
ingindustrywitheffectofITandsecuritysystemsTodescribemajorchangesinHRwitheffectoftheITimpactparticularlyinban
ingindustry
1.3MethodologyAdopted:
ThemainaimofthisdissertationistostudytheITimpactandSecurityactivitieswhichareadoptedbybothprivateandpublicban
sectors.ThecountryconsideredinthestudywasIndia.Themainreasonbehindinselectingthiscountryi
sasithasmorenumberofban
sandverylargepopulationwhohasallgradesofassuredincomelevels.
1.4Collectionofdata:
Asmallsamplesurveywasconductedinthisstudyandrequiredprimarydatawasgatheredfromquestionnaire(annexure)whichcontainsthedata/informationabouttheITandSecurityactivitiesfollowedbyprivateandpublicsectorban
s.Italsohadtheinformationaboutthecustomersreceivedfacilities.Nowthesecondarydatawasgatheredfromnewspapers,magazines,Internet,journalsetc.
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1.5Sampleplan:
Sampleunit:Inthisdissertationsixban
swherethreewerenationalizedban
sthatarePunjabandSind(PSB),PunjabnationalBan
(PNB)andStateBan
ofIndia(SBI)whileICICIban
,Axisban
andHDFCban
asprivatesectorban
swererandomlyselected.Thisstudywasrestrictedtothestaffofprivateandpublicsectorban
sofIndia.
1.6Samplesize:
Samplesizesof10employeeswereselectedrandomlyfromeachban
.AstheCRMactivitiesareadoptedmainlybyban
semployeestosatisfy,retainandattractthecustomerstoma
ethemastheirlongtermcustomers.Butforthesubjectrelativeinterviewsonlyspecifiedinthedissertation.
1.7SamplingTechnique:
Asuitableandappropriatesamplingtechniquewasfollowedtoconductthestudy.Inthissamplingtechniqueparticipantsareselectedbasedontherequirement.Thetechniqueisli
ethewayofconductingtheinterviewandscrutinizingtheanswersbasedonfaithandfairanswersrelatedtoourstudy.
Assumethatwehaveinterviewednearabout15peopleandmostlyoutof15nearabout8peoplewillgiveirrelevantanswersandsomeanswersarenotrelatedtoourstudy.Butwecanta
eonlysomeanswerswhichwefeeltheanswersarerelatedtooursubjectanditshouldbehonest.1.8DataanalysisandInterpretation:
Theobtaineddataisclassifiedandsummarizedtoimprovetheirstrategyfromresult.Afterconductingquestionnairethedatacollectedfromtheparticipantswasorganizedbyfindingtheresponserate.Byusingthispercentagewasfoundedandsummarywasmade.
1.9Limitationsofthestudy:
Eventhoughspecialcarewasta
enwhileconductingthestudytherearesomelimitationstonoticewhichareexplainedonfollowing:
1. Inresearchprocesstimeisthemainconstrainttoconsiderhenceonlyfewban
swereselectedtodostudy.2. Theresultofthisstudywilldependonresponseoftheparticipants.Thereforetheselectedsamplemaybeormaynotbeconsideredastorepresentcompletepopulation.3. Asthisisanopencategorysurveytheremaybechancesthattheparticipantsmaygivetheiropinionspersonallytojustifytheirinterests.4. Fewquestionswerenotansweredbytheparticipantsduetolac
of
nowl
edgeandnot
nowingsomeconceptsinITandsecurityactivities.
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Chapter-22.0LiteratureReview:
Ban
ingindustryisoneofthebestcustomercentricindustryandwiththeimprovementintechnologyitleadtoamajorchangeinallitsoperationsasithasboughtasuddenincreaseincustomersatisfactionandcustomerloyalty,thatleadtotheincreaseinprofit.Earliertheretailban
ingwasfunctioninginapersonalizedstylethatisthecustomerhadtogototheban
todoanytransactionsandtheyalsohadtowaitfortheirturntodothetransactions.Four
eyformsoftechnologydominatedbusinesscultureintheban
ingindustry:JonesT.,199rrAnewtrendcultureinthenewEra.
(Ibid)
"Aban
collectsmoneyfromthosewhohaveittospareorwhoaresavingitoutoftheirincomesandlendsthismoneytothosewhorequireit"(Crowther,2006)
Earliereverythingintheban
swasstoredonpaperthatcustomerinformation,ledgerboo
s,receipts,accountinformationandinandoutmanagementofban
swasstoredinthepapers.Thentheintroductionofthefirstsoftwarethedatawar
ewasintroducedbytheinformationtechnologyandstoringtheinformationwaseasyandtheydidn tneedaroomtostorethedata.Thiswasthefirstimpactofinformationtechnologyonban
ingindustry.Thentheyintroducedtheplasticcardswhichhadacustomizedpersonalidentificationnumbercalledasthe"PINnumber"whichwouldbeallottedtoindividualcustomersspecificallydesignedforprivacyofthecustomer.WiththisplasticcardcalledtheDebitcardcustomerscangetinformationabouttheiraccountasavingoracurrentaccountfromtheAutomatedTellingMachinetheycandepositorwithdrawmoneywithinseconds(Saloner,G.andShepard,S.(2005),.
ThentheInternetinfluencedbusinessindustry.WiththeentryofInternettheban
ingindustrywastheone,whichbenefitedthemost.Customerswhotravelalotitwasbecomingdifficultforthemtotransact.Thenthesolutionthattheinf
ormationtechnologycameupwithistheonlineservice,whichwouldma
etheban
12available24hoursadayand7daysawee
.Customerisas
edtoonlinetoasecuredsiteinwhichheneedstoanswerthesecurityquestionsandthenthecustomergetshisusernameandpasswordforhisonlineban
ingaccount.Wherethecustomercantransacthiscurrentorsavingaccount,cantransferthemoneytoother saccountwithadifferentban
accountnumber,alsotheycandothetradingtheycansellandbuythesharesonline.Thecustomercaneventa
etheprintofhisaccountstatementallthiscanbedonefromanysystemorplace.
Thiswasappreciatedbythecustomersalotandtheban
too
allthenecessarystepstosatisfythecustomers.Thisisaconvenientprocesswherethecustomercanaccesshissavingaccountorcurrentaccountandtransferthemoneytoanotheraccoun
twithouteventravelling.Throughthisonlineandwirelessban
ingthecustomercanpayhisbillswithoutgoingtohisban
.ElectronicauthenticationandElectronicsignaturesban
sisusedforproperidentificationofthecustomer
sidentity(Tam,K.Y.(2008).Theseprocesseswouldincreasetheefficiencyofelectronictransaction.Securedonlineencryptionisasafeofdoingthetransactionswhenthecustomersareonline.Mobileban
ingisthecalescentareaintheban
ingindustryandverysoonitwouldbereplacingthecreditanddebitcardsystemsinthenearfuture.Mostoftheban
ingindustryaresendingthealertsthroughSMStotheircustomersitissafeandveryusefulnowadays.MagneticIn
CharacterRecognitionisatechnologymainlyusedbytheban
ingindustrytochec
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theprocessingofacheque.Thesecharactersareprintedwithmagneticin
toatoner.Securityisoneofthemostimportantfactorsforanyinformationtechnologybasedprocessingandwhichisverycritical.Manysecuritymeasuresshouldbeta
encareof.TovalidatethetransactionstheMa
erchec
erconcept,transmissionofelectronicmessagesoveranetwor
inencryptedform,dueauthenticationbymeansofprovidingdigitalsignaturesandstorageofelectronicrecordsinconformitywiththeprovisionsoftheITAct,2000andamendment2008."
Electronicfundstransferthecustomercouldbeabletotransferuptofivela
hstoanyban
inanycityorstateorcountrywiththisservice.Electronicbillpaymentthisservicewouldallowthecustomertopaythebillsfasterandwithmoreeasetheycanoperatethisserviceasthisisonethingacustomerwouldappreciateisnottogotodifferentplacestopaybillsbutatoneplacetheycanpayalltheirbillsthisservicewouldprovidethistothecustomer.Andtheban
ingindustrycancontactthecustomerswithanyupdatesoranynewschemesornewplansbysendingamessagetothecustomer
sphoneandcustomercanevengethismonthlyaccountstatementtohisemailwithinseconds.Centralizedban
ingcoreisaterminologyusedtodescribeaprocess,whichisprovided,byagroupofban
withisinnetwor
witheachother.Herethecustomercanaccesshisfundsfromanyofthebranch,whichisamemberofthenetwor ban ing.Theycandepositorwithdraworanyotherinformationthattheyneedtheycangetit.This
indofban
inghasbecomeinalmostallthestatesandcountrieswheretheban
sareundercorewithotherban
s.Astheretailban sintroducednewservicesforthecustomertheyhavealsomad
esurethatwhateverthecustomeras
edforisdone.Thecustomersintheinitialstageshadanotionthatsecuritywouldnotbetherewhentheyaretransactingthroughinternetbuttheretailban
inghasmadesurethatthesecurityofdatawouldbeatthetopandeverytransactionthatthecustomerwoulddowouldbeinasecurezoneandallthepasswordsandpinnumberwerealsoencrypted.Soitbecameeasyforthecustomertotransactwithoutanyfearonline.Theservicewhichisprovidedtothecustomersispersonalizedwhencomparedtothetraditionalban ingthenewtechnologicalwerecustomercentricandcanbeaccessedatanytimeandfromanyplace(Oliner,S.andSichel,D.(2000).Thesethingshavechangedthecustomer spsychologyaboutban
ingandretailban
ingbecomeeveneasiertothecustomers.
Earlierthecustomerhadtovisitthebranchforanyqueries.Butnowifweloo
attheusageofATMshaveincreasedtoahighextentwhichisaremar
ablebecauseofthefactthatinoldendaysinternetwasnowhereinpicturebutnowinthepresentcontexttheusageistentimesmorethanoldendays.
Thiswilldescribethedifferenttypesofnewtechnologiesortheelectronicmethods,whichareusingbythepresentban
s.Theretailban
sshouldfindandusethesetechnologicalinventionsforitsdistributionchannels.CombiningdifferenttechnologicalinnovationstogethertoformanElectronicban
ing,heretheElectronicban
ingisdevelopedduetotheelectronicdeliverychannelshencethenameisgivenaselectronicban
ing.Alltheservicesareelaboratedinvariousformsandalsointhepastyearsmanyfirmsandorganizationsareadoptingtheseservicesandcameto
nowabouttheimportanceofwor
ingtogether.Nowtheban
ingindustrieshaveseenthisserviceandthishadevolvedanewpictureinthe
irbusinessesastheworlditselfhasseenthegrowthintherecentyearsinthisnewtechnology.Thevariousformsofelectronicdeliverychannelsareexplained(Koza
,S.(2005).
ATMs(AutomatedTellerMachines)(Rose1999)thedefinitionofanATMis"anATMcombinesacomputerterminal,record-
eepingsystemandcashvaultinoneunit,permittingthecustomerstoentertheban
sboo
eepingsystemwithaplasticcardcontainingaPersonalIdentificationNumber(PIN)orbypunchingaspecialcodenumberintothecomputerterminallin
edtotheban
scomputerizedrecords24hoursaday".Oncetheygettheaccessitstartstooffertheservicesoft
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heretailban
toitscustomers.Thesemachinescanbelocatedoutsidetheban
,inthemalls,airportsandinallthemajorlocationsinthecityapartfromtheirhomebranch.Themainreasonwhytheretailban
shaveintroducedthisserviceisforcashdispensing.ButlateronwiththeinnovationsintheinformationtechnologytheATMshavestartedtoprovidemanyotherservicesli
ethefundstransfer,billpayments,deposits,andministatement.Theretailban
shaveoptedforthisservicefromtheATMsbecauseithadacompetitiveadvantagewhencomparedtootherservices.WiththecombinationofboththeservicesthatisfromtheATMsandthehumantellersduringthepea
ban
inghoursitgavemoreproductivity.Asitsaveslotoftimeofthecustomerinsteadofstandinginthequeueintheban
theycandirectlywithdrawthemoneyfromtheATMastheycanutilizethistimeindoingsomethingelse.Fortheretailban
stheATMshaveprovenverycostefficientwhichgavehighproductivityinalessperiodoftimewhencomparedwiththehumantellers.OnanaverageahumantellercangiveservicetoaboutfourthousandthreehundredwhilecomparedwiththetransactionoftheATMitissixthousandfourhundredandifthehumantellersta
eabrea
inbetweenstilltheserviceiscontinuedbytheATMsduringandaftertheban
inghours.
2.1ITimpactslevelsontheBan
ingindustry:2.1.1PersonalComputer-Ban
ing:
PC-Ban ingisaservicewhichallowstheban scustomerstoaccessinformation
abouttheiraccountsviaaproprietarynetwor
,usuallywiththehelpofproprietarysoftwareinstalledontheirpersonalcomputer".Iftheconsumercaneasilyaccesshecanperformmanyfunctions,whichareprovidedbytheretailban
.Asthiswillalsoincreaseanawarenessandimportanceofcomputerliteracyamongthecustomersinturnitwillincreasetheusageofpersonalcomputers.ThiswilldefinitelysupportthegrowthofthePCban
ingservicewhichwillvirtuallyconnectsthebranchban
intothecustomer shouseortheoffice.12available24hoursadayand7daysawee .ThisinturnwouldbenefittheATMsandtheTelephoneban
ing(Rose,1999).
2.1.2TelephoneBan
ing:
"Telephoneban
ing(telephoneban
ing)canbeconsideredasaformofremoteor
virtualban
ing,whichisessentiallythedeliveryofbranchfinancialservicesviatelecommunicationdeviceswheretheban
customerscanperformretailban
ingtransactionsbydialingatouch-tonetelephoneormobilecommunicationunit,whichisconnectedtoanautomatedsystemoftheban
byutilizingAutomatedVoiceResponse(AVR)technology"(Balachandheretal,2001).
Teleban
inghasmanybenefitsforboththecustomersandtotheban
saccordingtoLeow(1999).Mainlyfor12customersitcangiveimprovedeasymethodstoaccesswhichisenhancedandthetimecanalsobesaved.Andaccordingtotheban
s perspectivetheseservicesrelatedtothetelephonearesubstantiallylowerthananyoftheirbranchservicesthatareprovidedbytheban
anditcostsverylesscomparedtoallthese.ItissimilartotheimpactthattheATMsproduceonlyexceptionisthatitcannotdispensethecashli
etheATMs.Theteleban
ing
deliverstheconduitthatgivesserviceevenaftertheban
officehours.Itincreasesthecontinualproductivityfortheretailban
.Theretailban
sofferitsservicestothecustomersattheirhomeortheofficessothatitcouldavoidtogoban
forany
indofneed,sothismethodmaysavetimeandcanalsoimprovetheproductivitybyprovidinggreaterconveniencetothecustomers.2.1.3InternetBan
ing:
AccordingtoEssinger(1999)theideaaboutInternetban
ingistoprovidecustomersaccesstotheirban
accountsviaawebsiteandtoenablethemtoenactcertaintransactionsontheiraccount,givencompliancewithstringentsecurityche
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c
s".AccordingtotheFederalReserveBoardofChicago sOfficeoftheComptrolleroftheCurrency(OCC)InternetBan
ingHandboo
(2001),InternetBan
ingcanbedescribedas"theprovisionoftraditional(ban
ing)servicesovertheinternet.
Internetban
ingoffersmoreflexibilityandconveniencetoitscustomerswhomcombinedwithavirtuallyabsolutecontrolovertheirban
ing.Servicedeliverygivestheinformationtothecustomeraboutthenewban
productsandmanymoreservicesalsoaboutthetransactionsthatarebeingconductedbytheretailban
s.
Analternativedeliverychannelfortheretailban
sisthatitcanreachthecustomersbyPC-Ban
ingandTeleban
ing,whichwillimprovetheproductivity.Alongwiththeimprovementsinthehugeproductivityitcanalsohaveanadvantagethatthedistancehurdlesandtimeareeliminated.Theretailban
ingwillcontinueitsproductivitywithunexpectedchancesofban
ingtothecustomers.ElectronicFundTransferProcesswillbeveryusefultothecustomersthattheycantransfermoneyfromtheiraccountintomerchandiseaccountforbuyingproductsatthepurchasingplaceitselfusingonlinetransactionwhichiscalledElectronicFundsTransferatPointofSale(EETPoS).APointofSalewillusethesmartcardli edebitorcreditcardthefundscanbetransferredbyactivatingthefacilityElectronicFundTransferProcess.
Duetotheincreaseintheproductivityoftheban
hasresultedintheuseofEETPoSwhichhelpsthecustomertopayforthepurchasingduringshoppingbyavoi
dinggivingcashtothemandalsocanbeusefulinsteadofusingchequeorwithdrawalsfortheshopping.Thisservicecanwor
evenafterthewor
inghoursoftheban
s,andhencetheproductivityincreasesfortheban
sduringnon-ban
inghours.Thismainlysavesthecustomerenergyandprecioustimetogotheban sorsearchingnearbybranchestowithdrawmoneyoratleastsearchforATMssothismayleadtolossintheproductivityoftheban
s.2.1.4BranchNetwor
ing:
"Networ
ingofbranchesistheinter-connectingandcomputerizationofgeographicallyscatteredstandaloneban
branchesintooneunifiedsystemintheformofaWideAreaNetwor
(WAN)orEnterpriseNetwor
(EN)forcreatingandsharingofconsolidatedcustomerinformationorrecords.
Thustherewillbespeedrateinthetransactionsintheinter-branchwithoutthedistanceandtimethatareeliminated.Sotheproductivitytimeperiodwillalsoincrease.Sincetherearemorenumberofbranchesforaban
toserveitscustomersandunderoneban
therewillhugelaborwor
inginthebrancheswithagoaltoimprovetheproductivityineachandeverybranch.Thecustomershouldtraveltonearbybranchandspendmoretimetodoproductionactivities.Arethecustomersoftheban
todayaretheymoresatisfiedandbetterservedfromtheirban
swiththeinnovationsortheyarehappywitholdformatthathasahumanapproachtoitsservicesisthemainquestion.Thefactorsli
eavailabilityofinstanthelp,availabilityofserviceaftertheofficehours,convenience,accuracyandreliability,lowcostfortheusageareimportantfortheban
customers.
CustomersatisfactionisResult-Expectations"(Dunne,T.,Foster,L.,Haltiwang
er,J.andTros
e,K.(2000).Tomeasurethecustomersatisfactionthetoolsarecategorizedintothreelevelsofsatisfaction,whichbasedonthemodelofthreelevelsofsatisfactionby(Kano)
1.Desiredqualitytoolssurveysoncustomersatisfactionwhichisonlywayto
nowaboutthecustomerswhereastheperceptualsurveyshavetheviewsofthecompetitor
scustomers.2.Expectedqualitytoolstal
saboutthecomplaintsystem.3.Excitedqualitytoolsshowsthefocusgroupofthefutureinvents.Innovationsinthetechnologywhichareadoptedbythepresentban
ersaredivid
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edintothreecategoriesasstatedby(Fisher,1998)
1.TransparentCustomerandcustomertechnologyshowsthecoreoftheoperationsinaban
.Thisisthetechnology,whichthecustomeronlyexpects.Ifthecustomerissatisfiedandthetechnologyreachestheirexpectationthentheywillremaincalm,otherwisetheconsumerwouldcontacttheban
quic
lytogivehisfeedbac
onthisorgivescomplain.Themainexamplewouldbeiftherewerenofacilitiestoseetheaccounttransactionsinstatement,thecustomerswillexpectfromtheban
seventhoughthetechnologyandtheban
processaretransparent.Forexampleletusseetheproblemofthestatementwasdelayedbyatechnicalreasonthecustomerwouldfeelangrythatthenormalstandardofserviceasexpectedhasnotbeenmet.
2.CustomerIndependentisatechnologywhichwouldinvolvethecustomer
sconductionandthetransactionswhicharecompletedwithintheban
ismainlyindependentofanyhumancontactwiththeban
li
etheinternetban
ing,phoneban
ingandtheATM swhichwouldnotrequireanyassistance.
3.Theban
employeewillassistacustomerandheusesthecustomertechnologytofinishthetransactionsli ethecustomerserviceinthecallcenterwouldusethecustomerrelationshipmanagementtounderthefilewherethecustomerdetailsarestoredinthecustomerprofileandthenthecustomersarecontactedandenquireontheirban
ingtransactionproblemsandalsoprovidethebillinguptodate.
AccordingtoSpiggleandSewell(1987)themodelformotivationfortheban
selectionisusedtoshowasanexampleforthecustomersatisfaction.
Theretailban
canbeattributedaccordingtoSpiggleandSewell smodelintothreetypes
1.Locationsfortheretailoutletsareatvariabledistancesandtraveltimeandassortment.
2.Consumerpsychologicalsatesli
etheperceptions,attitudes,attributeweightsandimagearedirectlyviewedasthepreferencesandshapingchoiceofpatronage.
3.Thecharacteristicsoftheconsumerli
ethelifestylesanddemographiccharacteristics.Thismodelofmotivationwasappliedforthequalitativeanalysisinthequestionnairesforthesurveyandtostudytheselectionreasonstothemodeofservicesgivenbytheban
toshowthecustomersatisfaction."CustomerSatisfactionandCustomerConnection"byColeandWayland(1997)
Doinformationtechnologicalinnovationsmeetthecustomerexpectationsintheretailban
ingindustry,AccordingtoColeandWayland(1997).Consideringthecustomer s
nowledgeandcustomer sconnectionwithtechnologyandta
ingthemasthebasicneedsforthecustomersconnectionstrategy.Itshowsthenewtechnologiesfoundandareusedtoma
etheonlineconnectionsforcustomerssuchasATM
s,self-servicesystems,Internetandthecallcenterforthecustomercaresystem.Accordingtothesesystemsthetechnologiesareincreasingthecapabilityofthestrategicsupportingchangesthroughtheimprovementsinthestrengthofcustomerstrengthbaseandalsoexplainthedifferentmethodsusedbythesevaluechainsandcorrelationsandpromotingthesecollaborationsinthecustomersandsuppliers.Thisreportwillhelpto
nowwhetherthecustomerconnectiontechnologywillbeusefultosatisfymaximuminthecustomerofretailban
ingandalsoincreasingpromotingcollaborationofthepotentialcustomerbaseandtheinterdependency,whichwasmentionedbyColeandWayland.
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Fromtheresultsitisshowingthatcustomerconnectiontechnologyalwaysdoesntsatisfythecustomermaximum.AnyhowthecustomerconnectiontechnologiessuchasATMwillsatisfythecustomersinsomecaseswhencomparedwithotherservicesli
eInternetban
ingandphoneban
ing.AccordingtoSloanmanagementreview:findingtheoutrageandalsothecustomerdelight(BowenandSchneider,1999)whythecustomersarenotsatisfiedandwhytheyaresatisfied?Itmaybebecauseoftheban
technologicalservices,customerli
ings,ortheattributesorthecustomercharacteristics?Thereweremanystudiesdonebythemar
etingperspectivetounderstandthecustomer ssatisfactionbutpsychologicalexplanationsofthese
indsofbehaviorsarelittleexplored.Fromthisstudywecansee
theexplanationinourresearchfromthecustomer sperspectiveofhisinternalstate.Andtheretailban
shavetogivemanyattributesandservicesandcanseethewhetherthecustomersaresatisfied.AccordingtoSloanmanagementreview1999thereareonlytwomethodsofthoughts,whichwilldescribethevariousstagesofcustomersatisfaction.FromMetexpectationmethodwewillconcludethatbyreachingthecustomerexpectationcanleadtocustomersatisfaction.Ifwecrosstheirexpectationsthencanma
ecustomerdelight.Alwaystheexpectationlevelswillbeanincreasingoneanddynamic.Thepersonalexpectationsaremorethanthepersonalstatus,whicharealwaystoughtoestimate.TheNeedsBasedModelwillbehelpfultosatisfythecustomerinthreeaspectsofthecustomersuchassecurity,justiceandself-esteem.Thismodelwillexplainthattheneedsarefocusedonthecustomersphysiologicalbehaviorandtoreachtheirexpectationswillconcentrateonattributeb
utnotonthecustomer.
2.1.5TheDownsizingofBan
s:
Therearemanyfactors,whichinfluencetheban
sindownsizing.Asfinancialservicesectorsprefertoglobalizethebusinessfromthenationalleveltointernational,therehasbeenhugecompetitionintheinternationalfinancialservicesofcustomerawareness,availabilityandinformation.
Therearemanylevelsintheban
ingstructureli
eotherindustrieshave.Butitisverydifficulttofacethisnever-endingcompetitivemar
et.Thehigherlevelsofmanagementwillinteractwiththeprimarylinemanagerswiththehelpofavailabilityofthetechnologicalinformation.Thisisalsousefulwhilehorizon
talinformationtransferamongthedepartments.(JacquesM.,12June2004,p.10/8)thehorizontalinformationtransferisusedtodecreasethemiddlemanagementinthemanagementstructure.
2.1.6Theendofcrosssubsidy:
Manyban
shavebeenwor
ingonthesmallaccountholdersprices,whicharesubsidizedtogetmoreprofits.Thesearehighvaluetransactionswithlessvolumetosubsidiesthelowvaluetransactionswithlargevolumes.Sinceitista
enasapositiveaspectbutitmayleadtonegativeeffectsontheabilityoftheban
stocompetethemar
et.Anyhow"Ban
snowincreasinglyacceptthattheymustrecovertransactioncostsfromthosecustomersthatincurthem"(ChannonD.,1993,p146).ThemainreasonforthisstephasbeenobservedfromtheCustomersservic
erevenuematrix-ifthelossesareincreasingbymanyofthecustomers-itisimportantthattheservicesshouldincreasetotwentypercent,whichmayreturnlargeprofitstotheban
s.
Thelessrevenuema
ingcustomersshouldbarethetransactioncharges.Thereshouldbeastrategicreasonifthosecustomersarenotfollowingitli
ethestudentaccounts.Thismayaffectthecustomerstodotransactionswiththeban
oritmayalsodecreasetherevenuesfromtheprofitma
ingcustomersandmayhavemoreburdensonthem.Thisstepwillma
eto
eepthelargeincentivestoattractmanyoftheprofitablecustomersinthemar
et.HoweverEconomistVilfredoPare
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to(1848-1923)arguedinhismodel"inorderformaximumwelfarepositiontobereachedthenthe"ophelimity"2ofsomeshouldnotincreasetothedetrimentofothers".(SlomanJ,2004,p.400)themainadvice,whichisgivenhere,isthattogetmoreprofitstheban
ingelementswithinitshouldnotaffecttheotherfactorsforsubsidy.ThispricingmethodhasbeenseenintheFirstChicagoBan
.ThispolicywasadoptedbytheCityban
tosomegroupofretailcustomersitattractedsomecustomersandremovedsomeuselesscustomers.
Iftherearesavingsinthepricedriversthatcannotbetransferredtothepricingpolicy,bythisnearlyeightypercentofnoprofitma
ingcustomerscanbeattracted.Thesavingsmadeshouldbeusedindecreasingthepricesandusethesesmallaccountsinreturnsofrevenueortoattractnewprofitma
ingcustomers.Fromthestudymadeintheyear1995-96revealsthattheremaybechancestodecreasetheinterestrateforthemediumandlowaccessaccountswhencomparedtothelongperiodaccounts.Eventhoughtheinterban
rateisfallingtheinterestgiventothe90daylargerandmediumbalancemaintainingaccountsareincreasinggradually.
2.1.7ThemoveawayfromtheBranchNetwor
:
Basicallythewholeban
operations,trainings,personnelandlendingarecompletelydependingontheban
branchmanager(SmithS.,WieldD.,1994,p.98)"intheorypromotionwasopentoanyoneTherelationshipbetweenInterban
rates,depositsandmortgagerates,whocoulddemonstratethenecessary aptitude and de
dication
"
Fromthepastfewyearsmaximumban
sarenotfollowingtheneedtofacilitatespecialservicestothecorporateandpersonnelcustomersbythenormalban ers.Ithasobservedthatthebranchmanagersarefeelingmoredifficulttoprovidesuchspecialservicestotheirhighrevenuema
ingclients.Thebranchmanagershouldfollowasbelow:
a. Increasingnon-ban
ingservicesforsalesman.b. Branchadministrationheaddecisions.c. Thecentralpointofreferenceforpersonalban
ing.
Itisalsoplanningtoperformsignificantmethodofwor
ingacorporateban
ing
function.Onemoreimportantpointistherethatitdoesnothavethesuitabledecisionma
inginlendingthelargerandmediumbalanceaccounts.Ithasconsideredasjust errandboy tosendashortmessage.Anyhowthemainthingtoberememberedisthatthebranchmanagerdoesnothavetheadvantagesinbothtrainingandexperiencesinceitmaybethetreatedpersonalthin
ing.Butanyhowithasbeenadvisedthatthemanagersare"lac
inginsomeaspectsofcreditevaluation"(ChannonD.,2003,p.210).
2.1.8HubandSatelliteBan
ing:
Hubbranchisthemaincenterofthesystemwherethecompleteaccountservicesareprovided.Itwillbetheplacewhereadministration,speciallendersandtrainingmanagersareneeded.TheprocessingofdatacanbepossibleinthesameHu
bbuildingorinadifferentdataprocessingarea(DP).Thewordprocessingandstandingordercler
saregenerallycentralized.ThisDPandHubwillsupportasatellitenetwor
oroffermanylimitedservicestothepersonalcustomerinthebranches."Manysatellitebrancheshavenomanagers"(SmithS.,Wield.D.,2004,p.102).Thismethodisverymuchuseful,asitisnotallowinginreplacingthede-layeringandoldgeneralmanagers."Thecareerstructurehasbecomehorizontallyandverticallyintegrated(ibid).Thislimitedtheopportunitiesincareerdevelopmentforthelabor.Themainreasonforthissituationisthatthetraditionalhierarchyhasbeenremovedandreplacedwiththeinsularlevels,whichwillnotmoveconstantly.
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Thehubwillalsoservethecorporatebranchbutitdoesnotofferanyspecialservicestothebusinesscustomersli
ebyansweringsolely.Ithasbeenobservedinsomecasesthattheban
sarehavinglimitedsavingsandinsomecasesitfoundthatithaseffectingtheproductivity.Byreducingthebranchmanagersthesavingsobtainedareusedforappointingthenewclericalandotherstaffthatareinneedforban
processing(ibid.p.103).Astheflexibilityhasdecreasedandhencetherehasbeendecreaseintheproductivity.Inthehigherstagesofspecializationsmaybereasoninincreaseofthestaffcosts.Letusseeoneexamplethatin2004-2005Barclaysban
hasremoved3400or-3.7%ofstaff.Inthismeantimethestaffpricesareraisedquic
lyfrom2607to2728millionpoundsor4.6%ofincrease.Theclericalstaffcostsareraisedto2.75%(Bifu).Hubandsatelliteban
ingelementsarecommunicatedwitheachotherbyreliefstaffcover,informationsystem(electronicorpaper)andmanagingteamstoloo
overthenetwor
.Thereisaneedtoincreasethereliefstaffcoversincethereisaspecializationintheban
process.Itcanbeseenthattheban
ingsystemisintendingtoincludeTyaloristtheoryintheirmethodology.Thereisnecessitytoseetheinputsli
etheFordplants,whicharenotproofofban
ingnetwor
.Italsosaysthat:
Whilenewtechnology,businessprocessre-engineeringandthetotalqualitymovementmayhavecreatedmoreefficientcompanies,Efficiencyshouldnotbeconfusedwithcompetitiveness.Competitiveness,reliesoninnovation,andinnovationreliesonpeople(Don inR.,2005b,Londonpage12)
Whentheban
sarenotabletobecomecompetitiveandadvancedbytechnically,itmayleadtonon-productivity.Itmeans,whenthereisanyseverecrisisoccursthentherewillbenospecialistsandmanpowertocleartheproblems.Soitisadvisedtoalwaysloo
underlyingcauseforany
indofchangeandinnovationsintermsoftechnology.2.1.9Doestechnologygiveban
sacompetitiveadvantage?:
Tobecomecompetitiveadvantageitneedstodevelopasuitable,different,uniqueandimpossibletocopy.Sotechnologywillnotanswerthisquestion.Sustainabilitydemandsthatafirmscompetitiveadvantageresistserosionbycompetitorbehaviororindustryevolution(PorterM.,1985,p20)
M.Porteradvisedthattodecidewhethertechnologicalchangewillbecomecompetitiveadvantagecanbedonebyadoptingsomecriteria:
a. Iftechnologyisincreasingthentheban
productswillbecomeuniquehencemanysharescanbeexpectedinthenewmar
etby
eepingremainingthingsconstantandasithaspioneeringeffect.b. Thenewtechnologyshouldbemadesecureandprotectfromre-duplicatingbyotherssothatitcanbecomesustainablyadvantageous.c. Eventhoughifotherscancopythetechnologytheban
shoulduseitscompetitiveadvantageandincreaseitstrafficrate.
Pioneeringmayleadtoavarietyofpotentialfirst-moveradvantagesincostordifferentiationthatremainsafteritstechnologicalleadisgone(ibid.,p172)
FromM.Portersaysthatthenewtechnologieswillnotleadtotheproductivityoftheorganizationorfirm.Thesetechnologicalchangescanbeabletochangethestructureofthefirmeffectivelyormaybecomeworst.Byconsideringthispointitissuggestedthattechnologicalchangethatimprovesafirmscompetitiveadvantagemayworsenstructureasitisimitated.(ibid).
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Thefiveforceswithinban
ing:
Itbecameveryevidentinsomecasesli
eNatWestsdevelopmentcaseofMondexandalsoforotherfirmsli
eNatWeststrategicallianceandTesco.Manyban
ingservicesli
ecashhandlingwhenemergencytoclearthecheque,travellerchequesarebeingstrategicallyreadytoreplacewithnewelementsbytheMondex,byintroducingnewtechnologiestheyhaveworsenthestructureoftheprocess.
2.1.10SecurityImpactonban
ingindustry:
Securityisalwaysanimportantaspectespeciallyinban
ingindustrywheretheris
ofbeinghac
edbysomehac
ersismoreli
elytohappensoban
ingindustryhaveemployedsometechniqueswhichassuresthecustomerstohaveasafeandsecureban
ing.Securityhasbringinamajorimpactontheban
ingindustryandinthetimelinetheresbeenamajordevelopmentsinthesecuritylevelonban
ingdifferentban
shaveemployeddifferentsecuritytechniquessowhichdemandsthecustomerstohaveastrongsecuritywithwhomtheyban
with.
2.1.11Securityandaccessibility:
Theban
amountcanbereturnedbac
bytheInternetusersmaybenotsufficient.TherearemanyproblemswiththecustomerstouseInternetban ingsincethey
feeldifficulttoaccesstoconnect.Itcannoticethattheproblemsraisedinnetwor
policingcannotbefinancialinstitutioncontrollingorownershipofspecificinstitution/individual.Themainaspecttobeseenissecuritymanyoftheban sarefacinghugethreatfromcomputerhac ings.
Recentevents-notablyoneyoungRussianhac
erspenetrationofCitiban
sowncomputersystem-showthatban
sfindithardenoughto
eeptheirproprietarynetwor
ssecure(TheEconomist,2005b,p.123)
ThesecurityforopenInternetsystemishighlyris
yfactorsfortheban
ingsystem.Ifanyworsethinghappenli
ehac
ingthentheInternetban
ingwillma
ethecustomerstoloseconfidence.Toovercomethisproblemmanyoftheban
ersareusingencryptionofthedata.Anyhowencryptingthedatamanynotprovidese
curityitcannotbecalledassecuritysystem.Ifthesystemistheftthenitdoesnotmeanthatthewholedatahasgonewithinthesystemssinceitaccountsonlyfor8%.ThenewtechnologymademodernsystemswherethecentralcomputersarereplacedwithPCsandfileservers.Anyhowthistypesavingdataisnotadvisabletherearemanychancesofloosingdatainthiswayofsaving.FromareportanalysisorganizedbyNationalconsumercouncilalongwithTheDepartmentoftradeandindustry,UKITSECandICLrevealedthat9from10areoperatingsecuritybranches(GarrettB,2007,p22).Toimprovethereliabilitythedataisdecentralizedintonetwor
.
Anyhowthesurveyreportsaysthat54%haslostthedata.Themaingoalofthemanagementsecurityisnotonlytoprotectfromthevirusesandhac
ersbutalsoitshouldma
eitclearandapproximate.Theauthorizedpeopleonlyshouldacces
sthedatainapracticalandusefulway.Itisnecessarytosatisfyboththemanagerialandcustomersrequirementsinsecurity.
2.1.12Consumers&EFT:
Thisexplainsthatthereistremendousincreaseinuseofelectronicdevicesli
eplasticcardsandATMs.FromtheAmericanBan
ersAssociationmanyofthecustomersarenotinterestedtota
ethepre-authorizedcredittransfermethodsli
e
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payingthewagesandshowingreluctanceifpreauthorizeddebitsareta
enli
epayingbills.Bothareproportionaltoeachotherasincomeincreasesgraduallywhereasthereisdecreaseinpaymentsforthegoodsandservices.Itisadvisedthatthecustomersarenotreadilyta
eupconveniencewithoutanylimitationsandwillreactbyta
ingeconomicworthrationality(KingR.,2005,p43).ThenewtechnologicalinnovationsandATMsareprovidingveryeasywayofban
ingtothecustomers.
Itwillnotsaythattheoldsystemsarenotusefulorinsufficientandareinfinalstage.Thisnewinnovationswillma
ethebothcustomersandban
stoaccesseasilyandalsotoholdupdataeffectively.ButThemorecomplexthearchitectureofacomputersystemanditsassociatedsoftwarethemoreli
elyitistofail.(ibid.,p.47)
Ifanyofthesystemfailsthenitwillleadtoabigproblemasthecustomerswillloseconfidenceontheban
flexibilityandqualityofnetwor
.Ifcustomersaresatisfiedandcomfortwiththetechnologicalmethodsli
eATMthentheywillarrangesomewayban
ingavailablearoundthem.InsuchcasesifATMnetwor
goesdownthenittendtoabigpersonaltragedysincetheycommittopayments.
Thepreviousmethodsofban
ingli
emanualchequeclearingandaccountingarehavingmorechancesoferrorsthanthetodayATMs.Anyofwrongdeposithasoccurredthentheycanbeobservedbeforealldebitsareposted.Themodernban
ingsystemisverymuchflexiblethatclearingofchequescanbedoneautomaticallya
nditcanbedisplayedonthesystemmoreoveralltransactionscanalsobeseen.Suchastreamofpoorcreditsmaypropagatethroughthousandsofaccountsbeforeitisnoticed.(ibid.)
Ifthissituationisconsideredasanextremeonethenitmayleadtocreditblac
outanyhowitisnotsuggestedbutitcanbedone.2.1.13MondexFunction:
Eventhoughthecreditcards,chequesanddebitcardshasbeenintroducedtheycannotbereplacebypapermoney.ThenewchangeshavenotdominatedtheGlobalrequirementasprimarypaymentisbycash.Ifthepaymentsystemsaredonewithcashthenitwillgivesatisfactionandconfidenceinban
ingsystem.Mondexfunctionswillmatchwiththecashthatistransferredwidely;eventhoughitperfor
msspecialfunctionsitshouldbewidelyaccepted.BasicallycashitselfisthemainassetthananyotherthingwhereMondexisembossedinachipofplasticcardwor
susingareadingelectronicdevice.Themainwillallowtransferringmoneytoanypartoftheworldonlybymonetarycomputerortelephonebasis.Mondexisdifferentfromotherban
systemcardssincetheycanma
eonlyindividualcardtransactionsastheyhavedatabasemethod.
ThisrevealsthattheSupportingtheinfrastructurerequiredforsuchaprocessmeansmarginalcostpertransactionforsuchinitiativesisalwaysli
elytobeuneconomicforthelowestvaluetransactions,leadingtotheirexclusionorsubstantialcross-subsidization(JonesT.,2006).AnyhowMondexhasplannedanewmethodistotransferthemoneywithoutanythirdpartytoovercometheaboveproblem.
Buttherearesomeconnectionswiththeban
sincertainlevelsofprocessingintheMondexsystemoffunctioning.Anyhowthelevelofconnectionwiththeban
sdependsonthetypeoftransactionsdoing.IndividualtransactionsaredonedirectlyusingtheCustomerWallettransactions.Nowifthetransactionsarebetweentheretailerandcustomerthenthetransferringwillnotbedonedirectlyusingban
ingsystem,buttheprocesswillcontinueperiodicallytransferredtotheban
throughthetelephonenetwor
fromtheretailerterminalPointofScale(POS).
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JamesEssingerwroteaboutMondexinhisboo
asElectronicPaymentSystems-WinningNewCustomers(2002),haveahugeimpactontheentireretailandfinancialservicesbusiness(Bifu2004,p7).ByusingtheMondexsecuredsystemofmoneytransferusingtelephoneshasreducedthedifficultyandris
ofcountingandtransportingofcash.Hencethiswilldecreasetheemployeesofthecashierandsecurityinthefinancialandban
ingsystems.Mondexprovidesafacilitythattheforeigncurrencycanbetransferrableintofivecurrenciessimultaneouslyinthegloballevelusingthetelephonenetwor
systems.ThustheincreaseduseofMondexwillreducethetravellerschequesandalsotheBan
ersUnioncantransferthecashtoforeigncountrieswithoutusingtheban
ingprocess(ibid.).ThusbyusingtheMondexmethodwillincreasethehomeban
ingprocess.
Thiselectronicmethodoftransferringandpaymentswillma
etodecreaseinjobsofcashierandchequeclearanceintheban
sduetolessuseofpaperintheban
ingprocess.OnethingshouldbenoticethatthisMondexiserodingtheBan
ingsystemslowly.AnyhowthisstatementwasrefusedinatelephonecallmadebyNinaHumphriestoMondexinternational.Sheadvisedthattheban
ingprocessstillcontinueandthecommunicationcanbeseenintheban
sandcards.Butshecannotexplainthemainreasonbehindthecommunicationbetweenthemtooccur.IftheMondexWallethaspurchasedinthelargerextentthenthepresentATMscanbeeasilyreplacedwithdirecttransferring.ThepurchasedWalletcanbeusedtochec
balance,deposit,transfercashfromortootherindividualcardsandwithdrawmoney(Mondex,2004,pp.10-2).Hencebyusingtheterminalinterconnectionoftheban ingnetwor theemployersareabletopaythereemployeeswithchargin
goftheMondexcards,thereisnothingtostopthisprocess.Sincethissystemisadoptedasapaymentsystem.Itdependsontheretaileranditswor
ersembossingonthecards.
Thequestionherearisesisthatwillthepeoplearereadytopayforthistechnologysincewehavefreesystemofpaymentasdirectcashexchangeofcash.Apartfromthesetransferringchargestherewillbeadditionprofitforthesecurityforexchangingthecash.Itcanattractthenewcustomersbyimprovingthenewfunctionalities.Anyhowtheprofitscannotbeabletoweighthecostsinsmalltransactionssuchasnewspapersalesmenandsmallstreetsellersarenotabletodohightransactions.
MondexusesinSwindon Units
Mondexcardholder 10,000Retailersandserviceproviders 700Payphones 200Screenphones 2,000ATM sadaptedforMondex 20Carpar
s 6Buses 80
[BasedoninformationsuppliedbyMONDEX]
NatWestandMidlandareestimatingthatMondexwillreplacethese20%cashtransactioninUKwithin20-30years(Bifu,2004,p.8).Thisalsoadvisesthattheef
fectofMondexontheemploymentlevelsandban
ingsystemmaynotestimateupto20years.Inthemeanwhiletheban
ingsystemwillcompletelybecomeworstinthemar
etandleadtodisfunctionality.Itwillalsoshowgreaterimpactonthebasicfunctionsoftheban
ing.HenceNatWestandMidlandareplanningtointroducenewtechnologicalofferstothecustomerstobecomecompetitiveadvantageinthemar
etbysmartcardoffer.Apartfromtheban
sotherfinancialsystemsaretryingtoinnovativenewpaymentsystemli
eprovidingelectronicsmartcardstodopayments.Duetothesenewmethodsofpayments,increasingcompetitiontheemploymentlevelsaredecreasingithaseffectingcompletelyintheban
ingindustry.
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....Historyandexperienceshowsthatwhenprofitsareunderthreat,WORKERSARETOO.(ibid.,p.9)
Expertsareadvisingthatthemar
etsharewillfalltremendouslyinthecreditcardmar
etpositionasexplainedinCompetitionbetweenStoreandBan
creditcards,page31.Therearechancestobecomesuccessinthisnewmar
et.Anyhowiftheyarenotsuccessfulinelectroniccashmar
etsystemthenhavebarepenaltyfromtheban
ingandretailban
ingsystem.Ittellsthattheban
isdealingwithhugeinvestmentsandris
s.Itnotonlydealswiththeban
ingprocesstobesuccessfulinthemar
etwithcompetitiveadvantageousmethodsbutalsotoremaininthemar
etevenifthereareany
indofchangesoccurintheban
mar
etenvironment.2.2.TheimpactsofITandSecuritysystemsonban
ingindustry:
2.2.1Enhancingprofitability:
Itwillnotbesatisfactorytoprovidetheconsumerwiththedesiredproduct.Ifanyfinancialinstitutionintendstostandbeforethecompetitionitshouldconcentrateontheprofitability.Financialinstitutionshouldfindthemoreprofitablefields.Theyshouldinventthedifferentmethodstoselltheproductacrossmoreefficiently.Itiseasytohavethebigshareofthemar
etashighproductacutenessisthere.Additionallythesellingofmoregoodsma estheprofitsg
ohigh.
Withthecloserelationshipofthebuyer-sellerprofitabilityrises.Whenprofitabilityofanyorganizationincreasesshareinthemar etwillbemore.Toma esomedecisionsinsales,mar
etingandservicesban
sneedsbusinessintelligence.Ban
sshouldincludethehightechnologiestoma
ethewor
faster.Thishelpstofragmentthedataquic
lyandovercomethetechnologicalhurdles.
Differentdataofcustomersaresavedatmanyplaces.Thisdatacanbeaccessiblewithsomeways.Withthevariationsintheindustrybuildorwithanymergerandacquisitiontheinformationcanalsobedistributedtolessadministrativearea.
Awell-managedCRMsolutionthatwor
swithdifferentapplicationscaninitiatethecompilationandanalysisofdata.Thissystemisoperatedwithlotofbusinesspartnersandsupplierswhichfacilitatethedatacompilationthatstrengthenfinancialinstitutionsalesforce.2.2.2Operationalexcellence:
Alltheban
smustbringtogetheritssalesandservices.Itshouldusethevariouschannelswhichfacilitatestheportalsfortheconsumersandwor
ers.Fromdirectmeetingtoindirectonlinemeeting,theyshouldavailableoneachpossiblewaysofinteraction.AhighlyefficientCRMsolutionshouldwor
withallthemodesofcommunications.Itincludesfax,email,onlineportals,wirelessdeviceandinteractionwithban
employees.Thisgivesainteractionbetweentouchpointstoanwor
bayandlin
edthewor
baytotheallthebusinesspartners.Thisserviceenablestheban
personnelonanyconsumer simportantevents.Theseshouldbereadytota
eappropriateactions.
Eachpersonnelarehavingtheproper
nowledgeands
illstoachievethedesiredgoalsoftheorganization.Theyhavealls
illsetstodeliverwithhighquality.Whatisrelationshipofthecustomerwiththeindustry?TheeffectiveCustomerRelationshipManagement(CRM)systemshouldbeabletoanalyzethis.Itshouldprovidethedatatoseetheconsumerstabilityintherelationship.
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2.2.3Benefitsforthecustomers:Whentheconsumerprovidedwitheasyaccesstothevariousproductsandservicestheyfeelblessed.Thewaytoreachtheconsumershouldbewellplannedandprofessional.Industrycandesignbetter-personalizedservicesifthedataoftheconsumerisupdated.Quic
actiontoanyissuesfacedbythem.2.2.4Benefitstotheemployees:Theywillgetenoughtimetofocusonthecustomerdemandsandorders.Allthepersonnelarestrengtheningwiththeideatoprovidethegoodqualityservicesandtofulfilltheordersastheyhaveas
edfor.Rateofsatisfactionwillbehigh.Thetop-levelpersonnelarestrengthenwiththedatawhichiseffectiveinbuildingcustomerrelationshipandma
ethema
ingquic
.
2.2.5.Benefitsforban
s:Therewillbeanidealutilizationoftheresources.Theindividualizedservicesprovidetheconsumerfaithandlevelofsatisfaction.Therewillbebetterconsumeracquirement,holdandsaleacross.Thegoodwilloftheindustryshouldgetimprovedintheconsumers minds.2.2.6CRMchallenges:
ThoughCRMisthecompletepac
agewhichcontainsallthestrategiesofma
ingprofitsbutstilltherearesomeloopholes.OneofthemainissueswhichCRMsyst
emisfacingistonotmeetingtheexpectationofreducingtheconsumerretention.ThisisthereasonfortheCRMdownfall.WhatisCRMfailure?Whatisthereasonforit?ThemajorreasonisthattheentireorganizationsthatareusingCRMarenotawareofitsfeatures.Theyarefacingalotofconfusionsaboutitscharacteristics.Therearemanyindustrieswhogiveitadefinitionofbusinessstrategiesandotherstellsitispertainingtotechnology.ThereisverylesspercentageoftheindustrieswhicharesuccessfulaftertheinstallationoftheCRM.Itlostitsinterestasitwasnotabletomeetexpectations.Therearenearly755oftheprojectswhicharefacingthenumberoftheproblemsafterinstallingCRM.MostoftheprojectfailstogetthedesiredresultsduetothevariousissuesexistsintheCRM.Howevertheexacttheratingiffailureisjust5%.Mainlythebigindustriesarefailed.Mediumsizeorganizationhasahighrateofsuccess.
2.2.7.ExorbitantCosts:
CRMrequiresthelargeinvestmenttomanageitscustomerdatabase.Thishugeinvestmentconsidersbeingabigproblem.Therearesomeotherexpensesalsoli
emaintenanceofthecomputerhardware,softwareandpersonneletc.Theadditionalcostsaresohighandnumberofexpensesisthere.MostlythecostsinvolvedarefailstocoverthereturnoninvestmentfromtheCRMimplementation.ThisleavestheCRMuserwithbadexperience.ThisiswhatwecallaCRMsuccessandultimatelyCRMfailure.
2.2.8InadequateFocusonObjectives:
Thesecondthingwhichneedstobeta
eninthemindisthattheaimsandobject
ivesshouldbeclear.Wholemanagementandemployeesshouldbewellawareoftheseobjectives,sothattheycanwor
towardsthegoalwithoutanyconfusion.Alltheobjectivesshouldbeclearlydefinedandwellplanned.HowevermainlywhentheCRMisgoingtobeimplementedandsuddenlyhardtimehits,Industrylostitsfocusonthegoals,whichultimatelyvanishes.Sometimesgoalsgetschangedandlosttheirvalue.Inthattimecompaniesta
entowardsgoalswhichareimportantandignorestheonewhichareoflessimportance.ThisisthemainissuewhichisfacedbymanycompanieswhileusingCRM.2.3ConclusionofLiteraturereview:
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Asintheban
ingindustrythecompetitionsisgettingintensifieddaybydayandthecustomer sexpectationarealsoincreasing,acquisitionsandmergersandthemainreasontheglobalizationandderegulationandtechnologicalinnovationsareincreasinghavechangedthescenarioofretailban
ingindustry.Whichisthecustomerspreferredfacility?Isthecustomerhappywiththefacilitiesprovidingbytheban
suchasATMs,phoneban
ing,internetban
ingandsmartcardsortheyareinterestedwiththeoldpatternofban
ingstylewhichhasthehumantouchinit?
Thisresearchwouldmainlyfocusabouttheretailban
ingindustry,andtellsthecustomersintensioninacceptingtheirservicesfromtheretailban
sdotheystillhavequalityintheirservicesanddotheyli
ethisnewinformationtechnologyadvancementswhichareimplementedbytheseretailban
s.Thechangesinthetechnologicalfield,whichpavedwayforgreatercustomerexpectations,thecompetitionwasintensifiedli
etheacquisitionsandmergers,globalizationandderegulationhavechangedalltherulesoftheretailban
ingindustry.Thesurveyisacombinationofquestionnairesandinterviewstochec
oridentifytheexpectationsofthecustomertotheservicesprovidedbytheretailban
s.Comparingcanchec thecustomerssatisfactionthetraditionalservicesprovidedbytheban
tothenewandimprovisedserviceswithtechnologicalinnovationsintheservicesli
etheInternetban
ing,Phoneban
ingandATMs.Bychec
ingthelevelsinwhichthecustomerscomparedtothetraditionalstyleofban
inghaveusedtheservices.Whatarethemainfactorsthecustomerfocuseswhenheischoosing
aserviceintheirban
?Thesurveys,whichweredoneinIndiaandinUK,trytoassessthecustomers behavior.AndtheresultsshowthatmostfrequentlyusedserviceistheATMinboththecountries.Buttheolderandwithlowereducationagegroupchosetheban tellersasithadthehumantouchinit.
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Chapter-33.1ResearchMethodology:Togathertheinformationthesurveymethodshouldbeused.Toshowtheimpactofinformationtechnologyandsecuritysystemonthecustomersofban
ingindustry,chec
ingalltheinformationthattheyhavecollecteddoesDataanalysisused.Surveysorquestionnairesshouldbepreparedtochec
ifthecustomersaresatisfiedbytheservicesprovidedbythem.Alsota
easurveyoftheban
ingofficialsforideasorchangingforthebettermentoftheretailban
ingindustry.
Alsochec
ingthecurrenttrendsofthemar
etandiftheyneededhavetodoaresearchonthismethodandwor
onit.Thisisasimplebutamoreconcisedatatoshowhowtheimpactofinformationtechnologyhashelpedtheretailban
ingindustrychangeforbetterdevelopmentwhilealso
eepinginmindtherequirementsandqueriesofthecustomersandgettingitresolvedbyoptingforthisimplementationoftechnology.
Asurveyshouldbedoneamongtheban
employeestochec
ifthecustomerwasabletoadapttothenewtechnologyorweretheyhappywiththeoldsystemthepersonalizedban ing.Themainthereasonwasthecustomerstrustfactorwhentheydothetransactiononlinetheyalwaysthin
aboutthesitewhichtheyuseissaveornot.Questionnairesshouldbegiventocustomerstochec
iftheyaresatisfiedwithservicesprovidedbytheretailban
andhoweasilycouldtheyadapttothechangeinstyleandadaptationinthetechnology.
3.2PrimaryResearch:
Theresearchhastwomainresearchfactorswhichhasbeenutilizedtheyarequalitativeandquantitativeresearchstyles.Thetraditionalformatofresearchiscalledthequantitativeresearchandthequalitativeresearchstyleiscalledastheinterpretersresearchstyle.Thedissertationhasboththeresearchstyles.
3.2.1QuantitativeResearch:
Questionnairesaregiventothecustomerstochec
theirviewsonthenewimplementationsintheretailsban
.Howtheinformationtechnologyhaschangedtheirviewaboutretailban
ingtheserviceswhichwereintroducedtothemdidtheyli
ethem.Thisanalysishelpstoassessthesatisfactionofthecustomersandsho
wsthereasonsbehindtheirlevelsofsatisfaction.Herebasicallyitshowsthereasonsbehindtheirlevelsofsatisfactioninusingthenewtechnologiesandsecuritiesintroducedbytheban
.
3.2.2QualitativeResearch:
Thisresearchismainlybasedontheinterviewswhichhavebeenconductedtounderstandthesatisfactionofthecustomerinabetterway.Themethodinwhichtheinterviewwasconductedwastheyhadaquestionnairethatwouldas
fewbasicquestionsandratingthemwhentheywereas
edtothecustomers.
Theusageofboththeseresearchfactorsshoedamoreclearunderstandingoftheaimsandobjectivesofthestudy.
Themainreasonforthissurveyistoanalyzeintheban
ingindustrywhataffectstheinformationtechnologyandsecuritysystemsonthecustomerssatisfaction.asurveywasconductedonthepeoplebasedonthequestionnaireta
enfromHills(1996)customersatisfactionmeasurementsboo
.ThisrequiredinformationisadoptedfromWoodruff,Donnelly(1992),Oliver(1997),Cardinal(1999),Johnson(1998)andotheravailableliteratureinthelibrariesandfromInternet.
Bydividingvarioustypesofcustomersintogroupsbasedoneducationallevelandageandconductedquestionnaire.Thissurveywillmainlyfocusonthecustomer
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satisfactionandtheiropinionsintheretailban
ingservicesofferedfromthefollowingmethods:Internetban
ing,phoneban
ing,ATMs,Ban
Tellers.
3.2.3Preparationofquestionnaire:
Themainuseofthissurveyistoseethecustomersvaluablefeedbac
ontheservicesprovidedbytheban
ersandcomparingthemwithsatisfiedlevel.Theservicesareofferedtothecustomersbytheretailban
ersbyutilizingtheoldcultureofserviceratherthanthenewinformationtechnologyinnovationsservicesprovidedtothecustomers.Inthequestionnairethereare10issueswheretheretailcustomerswillfindwhentheyusetheservicesprovidedbytheretailban
s.
Thecustomersarerequestedtoratetheissueswhichofthemwererelevanttothemornotwhichwereprovidedbytheban
shumantellersagainsttheautomatictellermachines,callcentertointernetban
ingandphoneban
ing.Andthedatawhichisdetailedshowstheimportanceofthecriteriawhichisusedbythecustomerstomeasuretheirsatisfieddegreeswhiletheyareusingthefacilitiesoftheretailban
s,andtheassociationofthequestionsisseeninthegivenexample:iftheconsumersratestheavailabilityofawiderangeofinnovativeservicesandhightechserviceswhichisanimportantissuefromalloftheminordertoselectaban
andtheyalsoacceptthattheinternetban
ingisthehightechandinnovativeservices,hencefromthesurveywecanconcludethatthecustomersaresatisfiedbyusingtheinternetban ingfacility.Thisinterviewingprocess
isheldonlyontherandomlyselectedsampleofpeople,themaximuminterviewswillheldintherailwaystations,premisesofban
sandshoppingcenters.Ifthecustomersareabovetheageof18caneasilyaccesstheretailban
ingandcandotransactingwiththeban sareeligibleforthis.Thequestionnairesaremainlyfilledinfromtheinformationwhichhasbeencollectedfromthecustomerswhichwillreducetheproblemsofinappropriatereasonfromtheban
sandreplyfromcomplaints.Someofthiswasansweredthroughemails.Beforeplungeintothesurvey,therewereinterviewsthatwereconductedon10participantsfromdifferenteducationallevelsofdifferentagegroupstogatherthefeedbac
onthequestionnairesonatrialbases.Themainreportfindingsandotherfactorsanditseffectsareexplainedhere.Dotheban
customersusingtheban
tellersandusinghowfrequentlythesefacilitiesratherthanInternetban
ing,ATMs,phoneban
ingandotherservices?Whicharethecustomersban
inghabits?Fromthissurv
eyreportwecanfindhowoftentheseATMsareusedinIndiaandUK.NowthesecondgoestotheHumanteller sservicewhichisprovidedbytheretailban
inboththecountries.Whentheanalysismadeonthevaryingpeopleinagegroupsandeducationallevelsinboththecountriesareasfollows:(Table1).3.2.4AdministrationofQuestionnaire:
Theusageoftheban
ingserviceswilldifferfrommanygroupsofpeopleli
eeducationallevelsandageoftheretailban
customers.Inboththecountriesmaximumeducatedgrouppeopleprefertousehumantellers.WhenitcomestotheagefactortherearechancesofusingtheinformationtechnologicalinnovationswhichmaybeATMsforagedpeopleratherthantousehumantellerservices(Table2).
But45-55groupcustomerswillprefertousethehumanoperatorservicesprovidedbytheretailban
sratherthanusingthetechnologyinnovationsli
eATMs?
1.Whichfacilityprovidedbytheban
ingismoresatisfiedthecustomersorwhichmodeofserviceisusedfrequently?
2.Dothecustomersoftheretailban
saresatisfiedmorewiththehumantellerswhichisprovidedbytheretailban
sorthetechnologyinnovationsincludingInternetban
ing,phoneban
ingorATMmachinessatisfythecustomermaximum?
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Normallyintheservicesprovidedfromtheretailban
sarethe"automatictellermachine","humantellers/operators","phoneban
ingwithoutoperatorassistance",phoneban
ingwiththeoperatorassistance"and"internetban
ing"inIndiaandUK,andthiswillexplainthatthemoresatisfiedservicesprovidedtothecustomersarebytheATMmachines.
Themostimportantservicedimensionwhichisli
edbythecustomersisfromtheATMwhicharesuingtheservicesofATMisthatitisavailableevenaftertheofficehourswhencomparedtothehumantellersserviceswheretheserviceisgiventothemonlyintheofficehours.SimilarlytheInternetban
ingandphoneban
ingisservicedequaltotheATMsafterofficehoursitisavailable.
3.2.5Survey:
Thechoiceoftheban
tellersisutilizedmoretoma
eBan
transactionsinIndiasuchastoapplyforanyloanortota
etheban
statementsandpayingthebills.
TABLE1ResultsfromSurvey(Question6)
________________________________________
Human ATMPhoneInternet Ban ing
Ban
ing________________________________________
IndiaAppofLoan 92/100 11/100 16/100 42/100Updatea/c 96/100 82/100 62/100 65/100BillPayment 99/100 83/100 45/100 79/100
UKAppofloan 86/10015/10018/100 66/100Updatea/c 83/10094/10078/100 73/100Billpayment 43/10093/10036/100 71/100
HoweverinUKthemaximumban
customerswillchoosetheATMfacilitymoreovertheban
operatorservices.
Whichmodeofserviceisleastsatisfied?
InUKtheban
customersarenotsatisfiedwiththeservicesprovidedbytheretailban
sli
ephoneban
ingfewtimesitgoesfortheInternetservicealso.HoweverincomparisontoUKtheInternetban
ingislowinIndia.
Whichdimensionofserviceisperceivedasimportant?
Wehavelistedintencriteriainthequestionnairethatcustomerswillthin
aboutitonlyafterusingtheban
services.Theyarea.Convenienceortheconvenientlocationsb.Courteouscustomerserviceofficersorthehumantellersc.Servicethatisavailableaftertheofficehoursd.Theban
ingservicesminimumta
ingtime.e.Easeofusef.Minimalprocessingortransactiontimebyamachineorateller.g.Hightechinnovativeservicesoffered.h.Noextracost.
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i.Instanthelporassistancej.Reliableaccurateservices.Accordingtotheresultsofthesurveythetwocountriesretailcustomersareran
edas"convenienceconvenientlocation"willbethebestban
serviceoffered.Eachandeverycustomerwhotoo
thesurveyinboththecountrieshavechosen"reliableaccurateservices"asthesecondbestban
serviceasthesecondbestban
service.
Andmaythin
aboutthefacilityofhightechservicesoffered,thereportshowsthatthehightechinnovativeservicesofferedisran
edleastandgivenlowimportance.Dothetechnologicalservicesprovidebytheretailban
erssuchasATMs,Internetban
ingandphoneban
ingaregivenimportance?Thetechnologyinnovationsareran
edbitlowerimportanceandstillmorethan80%ofthesurveycustomersoftwocountriesareshowinginteresttopreferthesetechnologicalservicesratherthanban
tellersor(operators).Andabove90%ofcustomerspreferfornewban
ingserviceswiththetechnologyinnovations.
TABLE2
SurveyQuestion8-Overall,doyoupreferinteractingwiththeBan
ingtechnologicalservicesoverhumantellers?________________________________________
FindingsINDIAUK________________________________________
YES 132 81No 18 19 88% 81%
________________________________________
TABLE3
SurveyQuestion10-Doyouloo
forwardtomoretechnologicalInnovativeban
ingservices?________________________________________
FindingsINDIAUK________________________________________
Yes 134 85 No 16 15 85%86%
________________________________________
Docustomersperceivecost?Ban
customersinIndiaandUKperceiveextracostthatisassociatedwiththes
ervicesprovideddifferentlyintheban
.Thesurveycustomersran
edextracostasimportantasreliableaccurateservices
Whytheban
customerspreferringtheHumantelleroroperator?Whentheban
ingcustomersareusingtheban
servicesli
ehumanoperatorcanhaveanadvantageofany
indofhelponthespotitselfandalsohavebetterservice.WhytheInternetandphoneban
ingdonotprefermore?
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Theban
customersdontfeelcomfortwiththesephoneandInternetban
ingfacilitiesandtheyalsofeelthatbyusinginternetorphoneban
ingthetimemaynotconsumedreduced.Theydoesnotevenaccesstheseonlineban
ingfacilitieseasilytheyfeelthattheyarenotreliableandconvenientashumantellersandATMsprovide.
3.3SecondaryResearchAnalysis:
Thissecondaryresearchanalysisreportwillexplainaboutthefactsofhowtodeveloptheliteraturereviewstructureandanalysisframewor
.Thesourcesforthisresearchwhichwereobtainedtomainlyuseintheliteraturereview.3.3.1PressArticlesandIndustryReports:
Someimportantfactorsintheliteraturereviewusedfromthesepressarticlesli
etheinterviews,opinionsandfromthesurveys.Thiscombinationofinformationhasbasicallyhelpedtodeveloptheliteraturereviewinaneffectivemanner.3.3.2RelatedBoo
s:
Theliteraturereviewwasbasicallydependentontheboo s.Theseboo sshowthetheoreticalaspectsfortheresearchwhichhasbeenta
esfromtheseboo
swrittenbydifferentauthors.
AcademicJournalsandReferences:Toshowloyaltyandsatisfactionofthecustom
ersinadaptingtothechangesandimplementationstheirban
sweredoingwithinformationtechnologywasseeninthejournalsthatshowedtheli
esanddisli
esofthecustomersoftheban
s.Asthishelpedtoformthebasicstructureforthesurveysandquestionsfortheinterviewsandthesurveys,thisinformationwasta
enfromlibraryandInternet.
3.4SurveyQuestionnaireAnalysis:
Thisisexplainedinthefollowingconceptusingliteraturereviewframewor
thatwasdevelopedto
nowthecustomersatisfactionlevelandloyaltyintheretailban
sandtheimpactofinformationtechnologyontheretailban
ingservices.Thequestionnairesarefirsttestedasapilotsampletodetermineifthequestionnaireswouldprovidetheresultsinregardstothequestionsaddressed.First
thefeedbac
fromthepilotresearchista
enintoconsiderationandthenitisusedinfinalizingthequestionnaireandthenafinalversionofquestionnaireispreparedwiththefinalversionofquestions.
Therearethreemainsectionsforthesurveyquestionnaires.Inthefirstpartconsistsoftheretailban
profilequestions.Thenthenextpartwillexplainsatisfactionandloyaltystagesfromthesurveyconductedonsampledpeopleregardstotheimpactofinformationtechnologyonthecustomersofretailban
s.Andthefinalpartwouldshowthecharacteristicsthatmadethecustomer ssatisfactionandloyaltytowardstheretailban
ing.
Thestartingsectioninthequestionnairehadtheprofileofthecustomerswhichhadthesampleoftheireducation,ageandgenderlevelcategorieswhichareim
portantinthissurvey.Toimprovethecapacityistheimportantaspecttoshowthedifferencebetweenthechoicesinselectingtheservicesthatwhereprovidedbytheban
s.
Thenextsectioncontainsthedetailsofthelevelofsatisfactionandlevelofloyaltyinthisquestionnaire.Thesequestionsareusefulto
nowtherelationbetweenthecustomersatisfactionlevelsandtheloyaltyofthemtowardstheirban
withtheimpactofinformationtechnologyandthechangesthatitmadeintheservicesoftheban
.
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Canitbepossibletoratethehowfrequentlytheban
servicesareused?
Thequestionassessesthecustomer spreferencesovertheban
tellerstotheATMsortheInternetban
ingortothephoneban
ing.
Docustomersperceivecost?Ban
customersinIndiaandUKperceiveextracostthatisassociatedwiththeservicesprovideddifferentlyintheban
.Thesurveycustomersran
edextracostasimportantasreliableaccurateservices
WhydocustomerspreferHumanTeller/Operator?
Ban
ingcustomerschosethehumanteller/operatorwhentheyareusingtheban
servicesanabilitytoprovideinstanthelpandassistanceaswellastheircourteousservice.
Whynotphoneban
ingandInternetban
ing?
Ingeneraltheban ingcustomersdonotseeInternetorPhoneban ingservicesasconvenient.Theydonotthin
thatservicescanminimizethewaitingtimeorthetransactiontime.Andtheban
ingcustomersalsodonotperceivethatInternetban
ingandPhoneban
ingservicesareasreliableandaccurateasthatprovidedbytheATMsorthehumantellers.
Arethetechnologicalinnovationssuchasphoneban
ing,ATMsandtheInternetban
ingpreferred?
Asthetechnologywasran
edlittlelowinimportanceinthefindingsbutmorethaneightypercentofthesurveycustomersinboththecountriessaidthattheypreferredinteractingwithtechnicalservicesoverthehumantellersandmorethanninetypercentareloo ingforwardforinnovationsinthetechnologyintheban
ingservices.
HowabouttheAvailabilityofawiderangeofinnovativeandhightechservices?
Thissurveyavailabilityofawiderangeofinnovativeandhightechserviceswas
ran
edlowintermsofimportance.
Whichmodeofserviceisleastsatisfied?
InUKtheban
customersarelesssatisfiedwiththephoneban
ingservicesandfewtimesitgoesfortheInternetservicealso.HoweverincomparisontoUKtheInternetban
ingislowinIndia.WhatistheMostSatisfiedortheSatisfactoryModeofservice?
Aretheretailban
customersoftheban
aremoresatisfiedwiththepersonalizedserviceswhichareprovidedbytheban
tellersoraretheymoresatisfiedwiththeservicesthatareprovidedbythemachinesli
eATMs,Internetban
ingandPhoneban
ing?
Generallyamongtheservicesthatareprovidedbytheretailban
saretheautomatictellermachine,humantellers/operators,phoneban
ingwithoutoperatorassstance,phoneban
ingwiththeoperatorassistanceandinternetban
inginIndiandUKshowthesameresultsthatcustomersaremoresatisfiedwiththeservicesthatareprovidedbytheATMs.
Thein-depthinterviewswhichfollowedthegeneralstructureofthequestionnaire.Thismethodwasdoneinordertohaveasimilarcoverageintermsofthequestionsthatwereraisedandtheywereabletoaddresstheresearchissueeffectiv
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elywiththegivenconceptualframewor
thatwasdevelopedfromtheliteraturereview.Thedifferencebetweenthein-depthinterviewandthequestionnairesisthatthecustomerswereabletorespondandprovidemoreinformationintermsoftheirresponsesandthatinturnhelpedtounderstandwhatthecustomerswereexceptingfromtheretailban
anditsservices.
Thein-depthinterviewsarealsodividedintothreemainparts.
Thefirstpartwouldmerelyintroducethemainrequirementanditwillshowtheageandeducationlevelofthecustomersandtheirrequirementswithservicesthatareprovidedbytheretailban
s.
Thesecondpartoftheinterviewisrelatedwiththequestionsregardingthesaisfactionandloyaltyofthecustomersandalso
nowingtheirresponseontheservicesli
etheATM,Internetban
ingandPhoneban
ing.Thestartingpointissimilartothequestionsinthequestionnairebutinthelaterpartofthein-depthinterviewamoredetailedinformationisobtainedfromthecustomersonapersonallevelwhat
indofservicewouldtheypreferandwhydotheypreferitandwouldtheyli
eanychangesintheservicesthatareprovidedbythe