This paper studies endogenous diffusion and impact of a cost-saving technological innovation -- Internet Banking. The bank understudy i.e. ICBC has efficiently embarked on its internet based private banking service. The vice director of e-banking felt that the entire project was an accomplishment in terms of its schema and satisfactory quality. Here is this case he needs to expound the understandings and the lessons internalized along the entire course of the project. Moreover, there were various issues which were raised during this intellectual itinerary, which included the challenges regarding computer system implementation, Information system design and most importantly the feasibility analysis. This case deals with the fact that how he confronted the challenges and developed a plan which immensely benefited bank. ISSUES There are various issues discussed in the case. These issues will be highlighted below: - The foremost challenge was the seamless promotion of the existing banking system and channels for the installation of new state-of-art IT infrastructure. In this regard, the changes made to the structure and functioning of the financial institution challenged the regulatory structure of the bank. - Furthermore, the subsequent development of innovative banking products on the skeletal framework of information technology. - Another tactical goal on the banks strategic map was to fortify associations and interactions with private customers by offering better product delivery and in doing so harvesting the use of internet as a medium. - Initially the bank’s core banking system was product oriented, but the need of the hour was to develop a customer oriented system, because the challenge is to build customer loyalty, cross sell, and enhance repeat business. - The industry is composed by a continuum of banks which produce a homogenous product — banking service. Domestic as well as foreign competition is violent. Not to forget the fact that ICBC has not been the first bank to embrace internet banking. So, it is all the more reason which places the bank in the most precarious position to continuously shield it self from the volleying competition. - Another pivotal issue was that of the multichannel integration—call center, branch, ATM, and Internet—which is immensely important for large financial institution like ICBC to attract and retain customers with the promise of “anytime, anywhere” account access. Customers are eager to have the kind of flexibility to use whichever channel is most appropriate at a particular time. Continuing with the same point the, ICBC was also concerned about the relative penetration of the existing as well as new customer base to gain access to the banks new technological proposition.
The costs associated with the online banking operation were out weighted by the benefits provide by the program. Resource had to be taking from other areas of the bank in order to start the program, which included creating the website, make it secure and promote it to customers. However, many benefits also came with the creation of this program. The first would be that it changes the patterns in customer uses of different banking channels. In active users of online banking there were drops in the use of some on the other banking channels. Another benefit is the retention that was created by online banking. This happened because once a customer entered all their information they saw it as a buried to switch bank and have to do it all over again. Therefore, customers would stay more and longer with their current bank.
The banking industry is under pressure in today’s business climate. Banks have been through big changes. There is opportunity, but there is also increasing competition. To be the preferred bank means changing “good enough” into a unique value proposition. And that means changing the way people have always done things, change on this level requires cutting edge technology. Change cannot be achieved with a simple directive or surface adjustment especially within the banking industry. It requires an innovative rethink of the entire system, in a strong partnership between bank leaders and their change agents. New systems and policies must support the strategy to be successful. The real test of a good strategy implementation plan is whether the people understand the strategy, are motivated and enabled to implement it, and actually start achieving its goals.
A weakness of the bank is the fact that it did not invest in higher technology for its banking system. The bank was running off an old school server system where a Teller would have to put in a three-digit code to do any transaction for its customers and this was a very out dated practice that almost no larger banking organizations used. Money orders and cashier checks were also printed in an out dated traditional type of printers with ribbons and manual mechanisms. Other banking competitors had adjusted to a
...adoption of UCB banking must get start from improving the usability and reducing the perceived risk.
In this paper, I have attempted to examine how could a company contract with a bank to create a security system for it, at the beginning of the contract the company will search the best way to create the system, and also the company should have a good impression of experience, so for that the owner of the bank decide the and direct the company to create the security system for their bank, and also the company will have look at the public acceptance, costs and how to design the system for the bank, and also my recommendation of this paper is, the bank should the first step decide to trust on the company that have contract with them, to work hard for them, and also for the company, is the way that they have worked before and have a good impression of the experiences of works that they worked before for the other places that had do the security system for them.
This paper will be looking at different approaches in the promotional mix and where they are used most effectively within RBC and their approach. The promotional mix is a combination of personal and nonpersonal communication activities that will help to establish and interact with customers. The main goal of the promotional mix is to inform, persuade and remind customers about product or service that they are trying to provides to customers. Even though RBC is a bank, they still have created an effective promotional mix over the 143 years of service
This involves a greater degree of understanding of consumer behavior and investments in systems and strategies designed to service the consumer as they communicate and transacts across channels.
It was maintained that universal banks not only provide tailored services to the customers but also lower customers’ costs by employing economies of scale that traditional commercial banks cannot utilize (Aguirre, Lee, and Pantos, 2008). Further, universal banking system is more financially stable due to their diversification model.
Furthermore, Online banking has formed huge competition among banks, products and services specifically for users in countries where Online banking is most developed, for instance, Sweden. Such competition and/or consumer demand, had droved banks to introduce and maintain several services, including those non-profitable ones. The statistical relationship between profitability and services offered will possibly varies with smaller banks (having assets less than US$100 million) than bigger banks (assets over US$100) as expressed by researchers (Frust et al.,
Business today is inextricably intertwined with technology, from the smallest home office, to a multinational corporation with multiple monolithic legacy application. It is impossible to be in business today without confronting the issues of technology. The way we do business today is different than 30 years ago. Technology has evolved around the areas of telecommunication, travel, stock market, shipping even around our daily lives. E-commerce a system by which people can buy, sell and deal without even seeing the person on the other side has taken a front seat in improving the economy of countries around the world. Technology today has made it possible for monetary institutions to help locate the customers resources and help solve their problems at any given time through online banking. The Internet, a boon to all business, is playing a part of a catalyst; it links millions of customers to its suppliers and vice versa due to this, manufactures are able to cut the role of middlemen and are able to deal with the customers, giving them the ability for direct input from the customers about their choices and views of their product. The busi...
The bank has another competency in the banking industry i.e. it has broad branch network throughout the country also more than one branch in high productive cities. The customers are provided services at their nearest possible place to confirm customer satisfied.
Communication modern technological tools that have been enhanced by Information Technology are having an impact on changing the very structure and communication of banking. That is, clients are enabled to make their banking transactions whenever and wherever they want. Bank clients, by just logging on their online account, can transfer any amount of money from their account to any other account, check their last processed banking transactions and apply for loans and other banking services. According to Keyes ( 2000, p.591) 'electronic checks provide consumers with the benefits of convenience and safety while allowing billers to maintain their existing depository relationships with their banks'. Further, e-mails has enabled bank employees to notify their customers of any new enhanced bankin...
Information and communications technology has played a big role in banking for many years now. ICT also made the banking industry more competitive than ever. ICT enables banks to offer better customer service through the spread and use of ATMs, Internet banking, phone banking, 24/7 services, plus the ability to offer an expanded portfolio of products and services. ICT offered the use of ATMs to banks which gave their consumers a greater access to their cash, consumers now longer have to queue up in banks to get their money invest in banks, and they obtain their cash at cash machines with 24 hours day availability seven days a week. With the presents of
The first online banking system was created in 1980 in New York, and was adopted by four main banks; Citibank, Chemical, Manufacturers Hanover and Chase Manhattan. The sector needed an innovation in banking systems because of growing consumer demand for service improvements as well as fear of losing market share. In the beginning, online banking was treated at private customers and small companies, to help customers have easier access to their bank accounts, however, now it achieves a global reach through the population. (Cronin 1997) In today’s world, electronic business (E-business) is very important especially for the banking system, plays a fundamental role in online banking (Nasri 2011). A true definition of online banking is difficult, because this system is connecting with different services which are constantly evolving. Access to online banking is possible through the internet, phone or even television. (Daniel, 1999; Mols, 1998). This ‘open system’ is available to the customers twenty four hours a day, seven days a week. This is a multi-level organized system, which helps people pay bills, check credit cards or even arrange mortgages without leave their houses. (Singer 2012)
Today, global retail banking sector is grappling with a myriad of challenges. The business environment has never been as difficult before, as it is now. In past years, especially post the global crisis in 2008, the industry has been characterized by rising costs to retain existing customers and add new ones, depressed profits, muted economic activity and low consumer confidence in investments. Citibank, the third largest bank in the US, closed its retail business in 11 markets across the world that were not profitable, to lower its operating expenses. It’s worth noting some of the vital factors that have put retail banking on cross-roads.