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Electronic Banking 1
A Major Technology Implemented in Jamaica over the Past 10 Years
Management o Innovation and Technology
Electronic Banking
!ro"p Mem#ers$
%alia Ale&ander 0'0()0*
Yannick +arvey 0,0(')*
-leardo M"rray 0'0,1.1
T"tor/s ame$ Mrs 2ook3ood4 Bro3n
A project s"#mitted in partial "lilment o the re5"irements or the Bachelor o B"siness
Administration degree in Prod"ction and 6perations Management and Acco"nting
7niversity o Technology
8chool o B"siness Administration
8t Andre39 Jamaica
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Electronic Banking .
ovem#er ..9 .011
Table of Contents
Ta#le o -ontents.
6"tline o Electronic Banking in Jamaica*
Identiication and +istory*
E4Banking Today in Jamaica*
P"ll and P"sh :actors in the ;evelopment o 6nline Banking(
Market P"ll :actors(
Technology P"sh :actors)
8trategies Employed in the ;i"sion o E4 Banking<
Implications or Management,
Increased Training eeds,
2ed"ction in costs'
=ariations in c"stomer s"pport'
2ep"tations at risk>
Beneits o E4 Banking >
Beneits to the -"stomer10
-onvenience10
It is easier to catch ra"d"lent activity in yo"r acco"nt10
Beneits to Banking Ind"stry11
:"t"re Beneits o 6nline Banking 1.
Appendi&1*
1*
E&le o ational -ommercial Bank E4 Banking ?ayo"t1(
E&les o Banks that 7ses E4 Banking 8ystem in Jamaica1<
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Electronic Banking *
Bi#liography1,
Outline of Electronic Banking in Jamaica
Identification and History
6ver the past 10 years all Jamaica has seen a vast increase in the implementation o technology
especially 3ithin the #"siness ind"stries 6ne s"ch ind"stry that stands o"t clearly in the minds
o Jamaicans is the #anking ind"stry This ind"stry has revol"tionali@ed #anking 3ith the
implementation o electronic #anking commonly called e4#anking or online #anking
The premise o e4#anking is to e&pand or make it possi#le and easier or e&isting #anking and
payment mechanisms9 primarily #y making many transactions cheaper9 aster9 more sec"re9 and
more convenient To #e dimin"tive9 e4#anking reers to ho3 #anking and payment transactions
are cond"cted rom a remote location9 or e&le the home or at the 3orkplace9 3hich allo3s
c"stomers to gain access #y the "se o comp"ters
The history o online #anking dates #ack to as ar as the 1>>0s To #e e&act on 6cto#er <9 1>>)
Presidential 8avings Bank in the 7nited 8tates 3as the irst to anno"nce the acility or reg"lar
client "se The idea 3as 5"ickly snapped "p #y other 78 #anks like ells :argo9 -hase
Manhattan and 8ec"rity :irst et3ork Bank In the early phases o online #anking most #anks
"sed a very simple layo"t9 3hich allo3ed "sers to sign in9 see their acco"nts and statements9 then
make transers rom one acco"nt to the other
E-Banking Today in Jamaica
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Electronic Banking (
Electronic #anking started in Jamaica aro"nd .00( ho3ever it 3as not "ntil .00> 3hen
signiicant gro3th occ"rred In a J"ne .00> article the Jamaica !leaner reported that online
#anking is gro3ing signiicantly as more c"stomers choosing ree over ees The article "rther
states that the trend s"ggests a direct response to #anks increasing service charges9 3hich
represents #illion in ann"al reven"es or the #ig t3o commercial #anks E4#anking in Jamaica
today is 3itho"t do"#t another road to revol"tioni@ing #ank services Today many transactions
has #een made easy thro"gh internet #anking services in Jamaica incl"ding vie3ing o acco"nts
and statements9 credit card payments9 arrangement or loans9 sending credit transers9 payment o
"tility #ills and set "p direct de#its9 all in j"st a e3 clicks Banks in Jamaica have also managed
to retain the simple easy to "se layo"t1 or online services
%ey players o the introd"ction o these online #anking services in Jamaica are "ndo"#tedly the
ational -ommercial Bank and the Bank o ova 8cotia altho"gh other #anks 5"ickly ollo3ed
Pull and Push Factors in the Develoment of Online Banking
Market p"ll innovations are deined as the advancement o technology9 oriented primarily to3ard
a speciic market need hile technology p"sh innovations relates to orms o technology that
has #een implemented and the need has to #e created
!arket Pull Factors
Traditionally9 cond"cting #anking transactions in Jamaica has #een vie3ed as a tedio"s and time
cons"ming activity -"stomers are "s"ally greeted at #anks #y very long lines res"lting rom
1 8ee appendi& or a sample e4#anking layo"t
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Electronic Banking )
lack o technology 3hich co"ld improve the speed o the process Another actor res"lting in
long lines in Jamaican #anks is the act that the #anks in Jamaica on average are only open or a
si& ho"r period per day as compared to those in developed co"ntries that 3ork an eight hr day
This leads to a r"sh or individ"als to get their #"siness done As a res"lt o this #anks co"ld
have a red"ction in #"siness9 3hich give more reason or their investment in this innovation
This is 3here online #anking has come in to #ridge the gap ;"e to the market p"ll 3hich
re5"ired longer ho"rs or #anking online #anking is a major sol"tion to this pro#lem 6nline
#anking has #een "sed in developed co"ntries or many years #eore its implementation in
Jamaica 8"#se5"ent its implementation in Jamaica9 individ"als are no longer compelled to 3ait
in long lines since their #anking can #e done .(C,
Technology Push Factors
As it relates to technology p"sh9 #anks are implementing vario"s technologies to "rther
appeal to the p"#lic to "se their services The 8cotia Bank o Jamaica or e&le has created a
card 3hich is named a 8cene card ith the "se o this card persons 3ill #e a#le to gain points
or transactions they do 3ith the #ank9 #oth online and act"al visits The points earned 3ill
contri#"te to3ards giving them ree tickets to see movies and concession at the snack #ars In
this move 3e are seeing the #ank creating a certain need or this innovation considering the high
costs associated 3ith the cinemaD persons 3ill ind this "se"l and have already #eg"n to "se it
Also9 n"mero"s #anks no3 oer clients to sign "p or their packages online 3hich seem to #e a
aster ro"te to traditionally going in ho"se
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Electronic Banking <
"trategies Emloyed in the Diffusion of E- Banking
;i"sion is deined as the process #y 3hich an innovation is propagated thro"gh certain
channels over time among the "nits o a system =ario"s strategies 3ere "sed #y #anks to di"se
e4#anking in Jamaica These incl"de ease o "nderstanding and "se and eicient comm"nication
Banks "ses ease o "nderstanding and "se as a di"sion strategy #eca"se the layo"t o the e4
#anking system is set "p in s"ch a 3ay that it is easily "nderstood #y c"stomers and th"s
c"stomers 3ill not #e easily de4motivated 3hen they are irst introd"ced to the system Inact it
is the hope o #anks that the system 3ill #e so easy to "se and "nderstand that "sers 3ill
recommend it to a riend and th"s aide in the di"sion o the technology Eicient
comm"nication helps to di"se the technology #eca"se #anks constantly comm"nicate the added
#eneits o e4#anking to c"stomers/ in order to pers"ade them to "se the technology Also i
there are any pro#lems 3hile "sing the system there is a c"stomer care n"m#er .
directly on the
3e# page that can #e called immediately
The 84c"rve o di"sion can "sed to ill"strate the di"sion process o e4 #anking The 84-"rve
has o"r stages namely the Emergence phase9 2apid gro3th9 8lo3 gro3th and Mat"rity phase
;"ring the emergence phase the technology 3as rather ne3 and individ"als 3ere not as s"re as
to 3hether or not to tr"st the online system as they 3ere not a3are o its #eneits In act many
individ"als 3ere not a3are o the online system in this phase marketing cost may #e high and
there 3ill #e little or no #eneit #eing accr"ed rom the online system
. 8ee appendi& or e&le o -B 3e# page 3ith c"stomer care n"m#er
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Electronic Banking ,
;"e to eicient comm"nication #y #anks 3ith c"stomers the technology then di"sed to
the rapid gro3th phase 3here more c"stomers are a3are o the prod"ct and th"s are a#le to
red"ce their overhead cost as more persons "se this technology This technology also di"sed to
rapid gro3th phase #eca"se o the gro3th o technology in general as more persons no3 have
access to comp"ters than in previo"s years Maya alrond9 senior vice4president o c"stomer
e&perience at 8cotia #ank arg"es that as more people get access to Internet9 more are "sing e4
#anking as their primary 3ay o #anking It is the easiest o all o"r channels9 even easier than
telephone #anking9 she stated
6nline #anking is yet to enter into the phases o 8lo3 gro3th and Mat"rity in Jamaica as it is
c"rrently at the 2apid gro3th phase as mentioned a#ove
Imlications for !anagement
The phenomenon o internet #anking allo3s c"stomers to cond"ct some or all transactions 3ith a
comp"ter "sing the Internet -"stomers are allo3ed to #ank in their spare time at home9 3ork or
school The option to cond"ct #anking transactions e&cl"sively online has had several eects on
local #anks9 some positive and some negative 8ome implications or management are disc"ssed
#elo3
Increased Training #eeds
The increased need or training is needed as the learning c"rve or Internet "sage changes 3ith
each ne3 development -"stomers oten come into the #ank and ask tellers 5"estions a#o"t
online #anking iss"es or they may call "sing the c"stomer care n"m#er provided online ;espite
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Electronic Banking '
the act that specialists can #e reached #y phone9 it is important to management that all
employees 3ho convene 3ith c"stomers have s"icient kno3ledge a#o"t the practicalities and i
possi#le the technical aspects o this technology
Increase in cometition
ith increasing pop"larity o the internet and access to it9 internet #anking has #ecome a primary
eat"re or almost every #ank in the co"ntry :rom the emergence o start4"p #anks9 many
spro"ted "p as online4only #anks9 eliminating many o the costs that traditional #anks have ith
lo3er operating costs9 Internet4#ased #anks are a#le to pass those savings on to their c"stomers
in the orm o higher interest rates9 leading to increased competition or traditional #anks
Management needs to #e a3are o this competition so they can strategically oc"s on gaining a
competitve advantage over competitors
$eduction in costs
Management does not have to 3orry a#o"t "sing reso"rcesD #eca"se internet #anking red"ces
costs or #anks9 as transactions can #e done 3itho"t the "se o paper and 3itho"t any #ank
tellers9 red"cing the need or employees +o3ever more technical persons 3ill #e needed to
monitor this technology
%ariations in customer suort
ith the "se o the Internet9 management can no3 manage c"stomers promptly and eectively
#y creating online s"pport :A data#ases as 3ell as online chat s"pport +o3ever management
m"st monitor these s"pport systems and ens"re they are 3orking eiciently
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Electronic Banking >
"ecurity Issues
8ec"rity iss"es are a main so"rce o concern or every person #oth inside and o"tside the #anking
ind"stry 6nline4#anking increases sec"rity risks9 potentially e&posing "p till no3 secl"ded
systems to open and risky environments Both management and sta need to #e proactive in
monitoring and managing sec"rity threats
$eutations at risk
This is considera#ly heightened or #anks "tili@ing the Internet :or e&le the Internet allo3s
or the rapid di"sion o inormation 3hich in t"rn means that any incident9 either good or #ad9
#ecomes common kno3ledge 3ithin a short space o time The rate o the Internet considera#ly
c"ts the optimal response times or #anks to any incident Any pro#lems e&perienced #y one
irm in this ne3 environment may inl"ence the commerce o another9 as it may #ring to
5"estion9 conidence in the Internet as a 3hole 8o9 there is conse5"entially a risk that one rog"e
e4#ank co"ld ca"se major pro#lems or all #anks providing services via the Internet This ne3
type o "niversal risk ca"se major concern to e4#anking providers 6verall9 Internet "sage places
importance on rep"tational risks Managers need to #e certain that c"stomers/ rights9 inormation
and privacy needs are s"iciently protected and provided or
Benefits of E- Banking
There are n"mero"s #eneits to #e derived rom electronic #anking These incl"de the #eneits to
the c"stomer9 #eneits to the #anking ind"stry and "t"re #eneits
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Electronic Banking 10
Benefits to the &ustomer
Convenience
Thro"gh Internet Banking c"stomers can operate their acco"nt 3hile sitting in an oice or home
There is no need to go to the #ank in person or s"ch matter Also most services that are "s"ally
availa#le in the physical #ank can #e o"nd on a single 3e#site only a mo"se click a3ay Internet
Banking is availa#le .( ho"rs a day9 seven days a 3eek th"s c"stomers can do transaction in
their o3n time instead o #eing restricted to physical #anking ho"rs o matter 3here yo" are or
3hat time it is9 yo" can easily manage yo"r money
It is easier to catch fraudulent activity in your account
ith the a#ility to vie3 yo"r acco"nt at anytime it is easier to catch ra"d"lent activity in yo"r
acco"nt #eore m"ch damage is done As soon as yo" log into yo"r acco"nt9 yo" can check yo"
acco"nts statement to see 3hether there is anything amiss I anyone 3rites a check or 3ithdra3s
"nds rom yo"r acco"nt and yo" kno3 it 3asnt yo"9 yo" 3ill see it right a3ay This lets yo" get
started on correcting the pro#lem immediately rather than having to 3ait a month "ntil yo"
receive a physical statement or "pdate yo" #ank4#ook to even have a cl"e it is happening as
3o"ld #e the case 3ith a traditional #ank
Internet banking costs less
;"e to the lo3er overhead cost associated 3ith online #anks s"ch as less involvement #y
salaried employees #ank inc"r savings tho"gh e4#anking These savings allo3 them to oer
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Electronic Banking 11
higher interest rates on savings acco"nts9 lo3er lending rates and service charges or online
transactions 8ome #anks even oer ree #ill paying services to enco"rage their c"stomers to do
their #anking online
Internet banking account is simple to open and use
There is "s"ally a very simple layo"t* or internet #anking Yo" j"st enter a e3 ans3ers to
5"estions in a orm 3hile sitting comorta#ly in yo"r o3n home or oice to create an acco"nt
To access yo"r acco"nt9 yo" esta#lish sec"rity meas"res s"ch as "sernames and pass3ords
There is also a .( ho"rs c"stomer care service representative j"st a phone call 3aiting to ans3er
yo"r 5"eries
Benefits to Banking Industry
Banking ind"stry has also received n"mero"s #eneits d"e to gro3th o E4Banking inrastr"ct"re
There are highlighted #elo3$
The gro3th o E4#anking has greatly helped the #anks in controlling their overheads and
operating cost
Many repetitive and tedio"s tasks have no3 #een "lly a"tomated res"lting in greater
eiciency9 #etter time "sage and enhanced control
The rise o E4#anking has made #anks more competitive It has also led to e&pansion o
the #anking ind"stry9 opening o ne3 aven"es or #anking operations
* 8ee appendi&
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Electronic Banking 1.
Electronic #anking has greatly helped the #anking ind"stry to red"ce paper 3ork9 th"s
helping them to move the paper less environment
Electronic #anking has also helped #ank in proper doc"mentation o their records and
transactions
The reach and delivery capa#ilities o comp"ter net3orks9 s"ch as the Internet9 are ar
#etter than any #ranch net3ork
Future Benefits of Online Banking
Technology Integration4 As technology integrates the online #anking system 3ill #e re4
invented in Jamaica to prod"ce a more advance system s"ch as mo#ile #anking This may
#e done 3ith the integration o a major cell phone company and a #ank :or e&le in
the 7nited 8tates Apple ?td integrated 3ith -hase Bank to oer -hase #anking
applications on their cell phones
!lo#alisation4 As the 3orld #ecomes a single glo#al market persons 3ill #e a#le to "se
online #anking to transer cash rom #rand o #ank to the ne&t Persons 3ill #e a#le to
cond"ct #anking transactions rom any3here in the 3orld 3itho"t hassle an in their o3n
convenience
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Electronic Banking 1*
'endi(
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Electronic Banking 1(
E(amle of #ational &ommercial Bank E- Banking )ayout
Corporate Banking
INTERNET BANKING -Corporate Login
CorporateInternetBanking
To sign in to online banking,
enter your Corporate ID, UserID and Signon password inthe fields provided.
Trouble Signing in?
1. Make sure your Caps o!kkey is off.". Che!k for !orre!t spelling.#. Call us toll free at 1$%%%$&C'$(I)ST
*1$%%%$+""$#--or e$/ail us
at n!binfo0n!b.!o/
Customer Care Centre
2lease !onta!t our Custo/erCare Centre and we will showyou how, at the Cli!k of a/ouse, you !an !ondu!t yourbanking transa!tions se!urely,fro/ anywhere in the world.
(or /ore details 3Call us toll free at 1$%%%$&C'$(I)ST
*1$%%%$+""$#--or e$/ail us
at n!binfo0n!b.!o/
CORORATE INTERNET BANKING - LOGIN
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Electronic Banking 1)
Personal Banking
&C' 9o/e
To sign in to online banking, enter your User ID and2assword in the fields below.
:nterUser&a/e
:nter2assword
Login Clear All Fields Forgot your Passw ord?
1. Make sure your Caps o!k key is off.". Che!k for !orre!t spelling.#. Call us toll free at 1$%%%$&C'$(I)ST *1$%%%$+""$#-- or e$/ail
us at n!binfo0n!b.!o/.
2lease !onta!t our new Custo/er Care Centre and we will show youhow, at the !li!k of a /ouse, you !an !ondu!t your bankingtransa!tions se!urely, fro/ anywhere in the world.
Cli!k here to see what elink !an do for you
(or /ore details, !all us toll free at 1$%%%$&C'$(I)ST *1$%%%$+""$#-- or e$/ail us at n!binfo0n!b.!o/.
(8;s
Ter/s and Conditions
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Electronic Banking 1<
E(amles of Banks that *ses E- Banking "ystem in Jamaica
There are n"mero"s #anks in Jamaica 3ho engage in online #anking in Jamaica These incl"de
the ollo3ing$
Bank o ova 8cotia4
ational -ommercial Bank4
Jamaica ation B"ilding 8ociety4
:irst -ari##ean International Bank4
2B- 2oyal Bank4
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Electronic Banking 1,
Bi+liograhy
1 Bain#ridge9 2ossF.00<G History of Online Banking 2etreived rom http$CCE@ineArticles
comC.,00,) on ovem#er .09 .011
. -ollinder9 Avia F.00>G Online banking grows- more customer choosing ‘free’ over
‘fees’ 2etreived rom
http$CCjamaicagleanercomCgleanerC.00>0<.'C#"sinessC#"siness1html
* Online Banking - The Evolution Of Online Banking, Lukewarm ustomer !es"onse -
Banks, #ervices, $eb, an% &inancial 2etreived rom
http$CCecommercehostipinoCpagesC'0CBanking6nlinehtmlHi&@@1eM%Yn<>
( http$CCecommercehostipinoCpagesC'0CBanking46nlinehtml
) http$CC333jnc#comC
< http$CC333scotia#ankcomCjmCcdaCinde&C099?I;en900html
, http$CC333#ankersonlinecomCtechnologyCg"r"stech0'1'0*dhtml
' http$CC#ooksgooglecomjmC#ooksidK&>AE(55jo-LlpgKPA)*Ld5Konline.0#anking
> http$CCecommerce4jo"rnalcomCne3sConline#ankingservicese&pansioninjamaica