Bank Capacity Planning : Online Capacity Branch Essay

Most new entrants are technology firms of all sizes that are looking revolutionize the banking industry as they revolutionized almost all major industries in the past 15 years. These firms apply concepts such as artificial intelligence and 24/7 connectivity to create innovative ways of performing tailored banking operations at lower cost and with greater convenience for the consumer. Retail banks however have an opportunity to maintain relevancy over the upcoming decade, but in order to do so they must harness technology either through in house innovation or partnerships to accentuate they’re current competitive advantages such as personalized

The World Wide Web has changed our culture in so many ways. People are able to do so many activities over the World Wide Web, it is unbelievable. You can pursue a degree through online universities, communicate with users around the world, purchase goods and services online, and yes, you can bank and pay your bills online. This new technology has enabled us to make payments, maintain a checking/debit card account, balance transfers, all via the web. You can maintain your entire financial portfolio through online banks that provide this feature. There are online banks that can provide interactivity between popular financial management software programs, such as Quicken and Microsoft Money. When using

The change and advancement in technology are a significant factor in the banking business. Technology has led to tremendous improvements in this industry. Since the commencement of this millennium, people have shown great love for their mobile phones (Ozaki 1992). It necessitated the invention of mobile applications (APPs). From the introduction of the mobile banking, APP people rarely go to the banks. All their transactions get done simply by the stroke of a finger. Businesses face a challenge of adapting to changes in the technology sector. Mobile banking either through actual investing or any other means is on the rise.

As their name suggests, they only execute their operations online. Customers can only be in contact with their money over the internet since they do not have any physical branches. Because online-only banks require lower overhead costs, they have the capability to offer more free services and higher interest rates compared to a traditional bank. Online banking provides many customers the convenience of handling their business at any physical location as long as they have access to internet. This is possible because of the variety of services that online banks provide despite limiting interaction to only the internet. Some of their services include applying for loans online, transferring funds and paying bills online. While the convenience of being able to access banking through the internet is worthwhile, there are limits to it. For example, making large deposits to the bank is limited and can only be made through the mail, they don’t service cashier checks for transactions, and withdrawing money from the account is very inconvenient. Luckily, the role of the internet in financial transactions is becoming increasingly prominent so that spending money online is more accessible, but it is important to understand both the benefits as well as restraints of online banking. Nowadays, many large brick-and-mortar banks have caught on and provide some online services in attempts to

Banks that offer financial products and services through the Internet must be able to meet their customers’ expectations. Banks must also ensure they have the right product mix and capacity to deliver accurate, timely, and reliable services to develop a high level of confidence in the customers. Customers who do business over the Internet are likely to have little tolerance for errors or omissions from financial institutions that do not have sophisticated internal controls to manage their Internet banking business. Likewise, customers will expect continuous availability of the product and Web pages that are easy to navigate.

In fact, we can trace the true origins of the most recent surge of technological developments as far back as thirty five years ago when the Atari 2600 was released and the impact that it had on game programming. In the early 1990’s we saw pagers take off and the birth of computer games as well with the success of computers. However, it wasn’t until the mid to late 1990’s when the Internet took off that the changes in technology were happening more in succession. For example, the flip phone was only about a decade ago and in the past eight years, the iPhone changed everything as technology started merging to include Internet, GPS, camera and video capabilities on the smartphones. Network of computers and the Internet that connects them to each other from the basic technological structure that underlies virtually all-electronic commerce (Schneider, 2015, p. 61). Technology has changed the way the world does business and the way we now communicate and interact with each other. Technology’s growth has translated into a shift from traditional business and the way it is conducted. The role of technology has allowed a leading bank such as JPMorgan Chase to implement innovative use of new technology to increase revenue. For example, JPMorgan Chase reported that 41 percent of its customers that used mobile banking in 2013 alone to make their deposits. JPMorgan Chase views technology as an opportunity to improve their relationship

. Mobile services not only offer a new, convenient channel for existing customers of banks, the technology will also provide access to 3 Bnstrong global unbanked population

The emergence of smartphones, such as iPhone, Android, and BlackBerry, allowed banks to provide a richer

Bigger. Faster. And Easier. All of these words showcase the obsession consuming the minds of both entrepreneurs and consumers over the past ten years. Not only have businesses and products been affected by this obsessive mindset, but also the financial industry. Online banking, banking apps, and the increasing popularity of credit cards have all shown how convenience and easy accessibility have been a crucial priority in defining the financial industry. However, these qualities have had benefits as well as drawbacks that can either assist or harm the future financial industry and, in turn, Dupont Community Credit Union.

Mobile Payments will similarly experience this trend. The MIT Technology Review recently created a report, entitled “The Future of Money,” which looks at the overall industry and factors leading to greater digitization of payments. Mobile phones have been a catalyst for much of the change, but it is important to remember that it is still very much a cash-based world, as estimates show that 85% of consumer transactions worldwide are still done with paper bills and metal coins. With 2.5 billion people unbanked, it is clear banks have not been able to appeal to or service this segment in a cost-effective manner using today’s cash-based and card-based payment services. New digital and mobile technologies provide a potential solution which can lead to much greater financial inclusion.

Montazemi and Qahri-Saremi (2015) argued that online banking provides the users with benefits such as “cost savings, greater control over service delivery, reduced wait times, higher perceived levels of customization, and convenient access to services without time or space constraints” (p. 1). Online banking will provide Saudi female users with completely flexible and quick service (Abdalkrim & Khrais, 2013; Beadnell, 2014). Such benefits should encourage Saudi female to use online banking as a channel to do their transactions.

The evolution of technology over the past few years has been part of a phenomenal experience in our everyday lives. Today, more and more people rely on getting things done faster and quicker, with the help of technology. Take banking for instance, the traditional way was having to go to the bank for even the smallest transactions like sending money, checking your balance and so on. Then came the era of Automatic Teller Machines (ATMs), which can be used to carry out simple banking transactions. From then on, Internet banking was introduced in the early 1980s, and by the year 2000, around 13.7% of households had signed up for online banking accounts, just in America (Ann

The figure 4-2 above shows the day to day banking methods that are preferred by customers of all ages. The diagram portrays that the most convenient and preferred way customers choose for their day to day banking activities is mobile banking. Nearly forty-eight percent of the customers use their mobiles for their daily transactions, example transfers, payments etc. Branch banking is the second method preferred by nearly thirty-two percent of the customers. Where online banking with nearly nineteen percent holds the third position atms are the least method customers prefer for their daily banking. None of the customers comment about telephone banking. These preferred methods actually focus the areas where banks should concentrate on providing good customer service. It is very obvious to target customers through their preferred banking methods. For example, in this above diagram it is clearly showing that mobile banking is the most preferred method and atm is the least preferred method and so a bank can earn more customers if it provides better customer service towards mobile banking than atms. Off course the

We have mention Branch and ATM network, Customer Service and Innovation as one of the key success factors for a bank, but all these will be unfruitful if there is no proper ICT platform to support them. To be able to take full advantage of the opportunities in the market and combat threats a bank must have an up to date strategically planned and implemented ICT infrastructure. In 2010 CRDB and NBC made entire bank systems upgrades, announcements were made on Radio, TV, Newspapers of the changes and their implication to the services offered. This is an example of organizations that have

The International Journal of Engineering and Science (IJES), ‘The Effects of Mobile Money Services on the Performance of the Banking Institutions: A Case of Kakamega Town’, April 2014, Vol. 3, ISSN (e): 2319 – 1813 ISSN (p): 2319 – 1805 www.theijes.com The IJES Page 16.