FIB3062
E – BANKING MANAGEMENT
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FIB3062: E – BANKING MANAGEMENT
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Introduction to E-banking management
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Management of E-banking products and services
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Management issues in E-banking technologies
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Risk management of e-banking
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The future of E-banking management
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ASSESSMENTS
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Participation
5%
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Mid-term Test
10%
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Group Presentation
25%
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Final Exam
60%
E – BANKING MANAGEMENT
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Lecturers
1. Lưu Ngọc Hiệp
hiepln@vnu.edu.vn
2. Hoàng Tiến Nhật Anh
nhatanhht@vnu.edu.vn
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E – BANKING MANAGEMENT
CHAPTER 1
Introduction to E-banking management
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Learning Objectives
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Understand the definition and evolution of e-banking
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Identify main stakeholders of e-banking
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Identify benefits and challenges of e-banking
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Discussion: e-banking, digital banking, traditional banking and virtual banking
E – BANKING MANAGEMENT
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OUTLINE
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Overview of E - Banking
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Overview of E– Banking Management
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1. OVERVIEW OF
E - BANKING
E – BANKING MANAGEMENT
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E – BANKING MANAGEMENT
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1.1 Definition and evolution of E-banking
❖ Definition of E-banking
• E-banking services provide customer access to accounts, the ability to move their money between
different accounts, and making payments or applying for loans via e-Channels.
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1.1 Definition and evolution of E-banking
❖ Definition of E-banking
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1.1 Definition and evolution of E-banking
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1.1 Definition and evolution of E-banking
❖ Evolution of E-banking
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1.1 Definition and evolution of E-banking
❖ Evolution of E-banking
The
1990’s
The
1980’s
•
•
Basic services
Required a computer
terminal, a monitor, a
telephone line
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•
24/7 E-banking
services, more
security features
More people owned
computers and
connected to the dialup home internet
The
2000’s
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Covered most of the
banking services range
Become more popular
and acceptable by
customers
The
2010’s
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•
•
Online banking go
mainstream
Diverse features
Mobile banking and
conversational banking
are developed
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1.1 Definition and evolution of E-banking
❖ Evolution of Digital banking
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1.2 Main stakeholders of E-banking
Retail customers
Banks and Financial Institutions
Corporate customers
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BENEFITS
1.3 Benefits and Challenges of E-banking
Security concern
Technical issues
Customers Loyalty decrease
Lack of customers’
awareness
• Lack of personal
relationship
• More competitors in the
market
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CHALLENGES
Speed and Convenience
Cost reduction
Increased revenue
Easier expansion
Organizational efficiency
Enhanced Image
Attracting high value
customers
• Load reduction on other
channels
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•
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1.4 Discussion
Traditional Banking versus Virtual Banking
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1.4 Discussion
❖ Traditional Banking: refers to banks with a physical presence with a domestic banking license. A
traditional bank typically has:
o Regional headquarters in each country where they are operated;
o Large number of employees;
o Face-to-face customer services;
o Dedicated account managers.
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1.5 Discussion
❖ Virtual Banking: refers to the act of accessing banking institutions and their functions online without
having to make a physical appearance at the banking hall. It entails making various banking services available
via extensive use of IT without the need for the physical walk-in.
Forms of Virtual Banking:
o ATMs
o Real time gross settlement (RTGS)
o Centralized fund management schemes
o The electronic clearing service scheme
o Use of magnetic ink character recognition code (MICR)
o An electronic fund transfer scheme
o Computerized settlement of clearing transactions.
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1.5 Discussion
Traditional
banking
• Transactions take
place only at the
bank or its branch
E-banking
• Based on a
traditional banking
platform and
provides additional
services such as
Internet banking,
SMS banking, etc.
Digital
banking
• Provides services
entirely on the
Internet and
eliminates the need
for branches of
traditional banks.
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2. OVERVIEW OF
E – BANKING
MANAGEMENT
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2.1 Management scope
User resistance to change
• User acceptance is often linked to two outcome variables: system
quality and system acceptance
• How to deal with user resistance ?
Ø Ensure that users from all hierarchical levels are involved in
consultations about the need for the new technologies
Ø Implement a comprehensive human resources management
strategy covering changes in working practices, job appraisal and
training programmes.
Ø Understand the resisting e-banking and create the development
TREADING THE
ORGANIZATIONAL MAZE
plans to achieve widespread adoption for customers
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2.1 Management scope
Channel Integration
• Usage of the major delivery channels is split and changes with time
• Banks need to build integrated channels that facilitate customer
information and process flows which will enable them to achieve the
operational efficiencies they expected from the implementation of ebanking
TREADING THE
ORGANIZATIONAL MAZE
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2.1 Management scope
Creating Flexibility in Organizations
• Flexibility in an organization can be created by using a number of the
change management tactics
• Flatter structures organizations show more flexibility than those
with a large number of hierarchies.
• Organizations with modern computer systems can respond to change
faster than those organizations still using legacy systems.
TREADING THE
ORGANIZATIONAL MAZE
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2.1 Management scope
Managing Internal adoption
• Understand the fast changing capabilities for related technologies and
adjust e-banking functionalities according to the business need, and
communicate the value of e- banking throughout the organization
TREADING THE
ORGANIZATIONAL MAZE
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2.1 Management scope
MANAGING RELATIONSHIP WITH CUSTOMERS
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2.1 Management scope
“Personalization” is applied for 4 Ps
Marketing Strategy
E-Products or
E-services
MANAGING EXTERNAL RELATIONSHIPS
MARKETING AND SALES
New pricing
strategies
Personalization
via Internet
New
Advertising
mediums
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2.2 Principles and regulations
MAIN OBJECTIVES
• Maintaining market confidence;
• Promoting understanding of the financial system;
• Protecting consumers against frauds and privacy violations; and
• Reducing financial crime.
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2.2 Principles and regulations
FACTORS
Downloading speed
TOP MANAGEMENT
Norms
MIDDLE MANAGEMENT
Technical strategy
LOWER MANAGEMENT
Implementation techniques
Logo and Punch line
Mission, vision and objective
statements
Communication objectives
Advertising Campaign
Range of Services
Defining market orien- tation
Synergizing the various services under a single
umbrella
User Friendliness
Consumer orientation
Developing strategic gamut of the
services
Research input and strategy for
prioritizing consumer concerns.
Aligning technical support with
marketing objectives
Marketing objectives and related
positioning strategy
Brand image
Image of the site
Organizational structure and
strategic framework
Corporate strategy with hints of
Marketing strategy
Corporate image
Security policy
Factors of Security considered
Brand Personality
Corporate personality statement
Name relevance
Online promotion
Offline promotion
Branding strategy
Corporate promotion strategy
Corporate promotion strategy
Layout of the site
Site Positioning
Technical support
Technical layout, testing and implementation
Communicating the positioning strategy
Communicating image related facts
Implementation and communication of the
Technical aspects of security policy
same to the consumers
Communication tactics related to brand
Brand personality state- ment
personality
Brand taxonomy
Creating awareness of brand name
Brand promotion strategy
Creative communication tactics
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Brand promotion strategy
Creative communication tactics
Homework
Each group does a research on 1 case study of e-banking practices in Vietnam
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Q&A session
Thank you for listening!
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