Chapter 1 1.

.1: Introduction With the innovation that been ta ing place in the telecommunication, related tec hnologies in the information processing nown as "information technology" these would often help to fuel the strong growth for many economies. Even ban ing indu stry was not spared by this change. Today we cannot imagine the business world w ithout information technology. The retail ban ing industry particularly has bene fited a lot from information technology ( Berger, A. N. (2003). During 1952 to r ecent times a revolution too place in the ban ing sector, where people deposite d their money into the ban s that was ept safe and could be accessed only throu gh a chec or draft. But today the tractions can be done online within seconds t he transactions are done. The ban ing industry was adapting to this change. Almo st all the ban s started to see the impacts on the operations in the new ban s i n the country. The ban s had a large arrangement of information technology in th eir business functioning and it proved one of the biggest advantages of informat ion technology. Initially, ban ing was done personally where the customer had to travel to the ban to either get the information or do the transaction. In the ban everything was done on paper that is the ledger boo s for maintenance of ac counts, ta ing customer information, chec s, receipts, in and out boo maintenan ce, transfer of money. Retail ban ing is a very broad and always relates with th e commercial ban s also with individual customers as in the balance sheet it sho ws both the assets and the liabilities. For the liabilities it deals with saving s or current or fixed accounts also the loans and mortgages li e the educational or housing or the personal loan for the assets side as these are very important products that are offered by the ban s. This also has services that include the credit or debit cards or the services, which are related to deposits. Retail ba n ing is nothing but providing services to both the customers and the small-scal e businesses, which are having a number of transactions of low value. This is ve ry different when compared with the normal ban ing where the customers are large in number li e the governments or big enterprises or the multinational companie s that deal in smaller numbers with a high value in the transactions. Lending and retail ban ing both are considered many a time as synonyms, but it i s assumed to be a part of retail ban ing. The customers are given priority in a smooth way in this retail ban ing, and it is mainly divided into three important forms and they are as follows: the multiple groups of customers either be it fo r small business, consumer or corporate. The multiple distribution channels li e the branch, call center and Internet and the last one is the multiple product l i e the securities, credit cards, insurance and deposits and investments. A power has risen up in the government greater than the people themselves, consi sting of many and various powerful interests, combined in one mass, and held tog ether by the cohesive power of the vast surplus in ban s. The change started ver y slowly with preliminary softwares or the database for the maintenance of their data in the bac ground. And gradually it started to grow and importance of infor mation technology was increasing (Hotelling, H. (2009). It was used in every sec tor of the ban . They introduced new technologies and made the process more cust omers centric and with each new technology the ban received great appreciation from their customers. For very small information the customer had to travel to t he ban but after the information technology came into existence the transaction become very easy. To withdraw or to deposit money the customer had to wait for his turn. But information technology has come up with a solution for this proble m they introduced the teller machine which is an "Automated Telling Machine (ATM )". In which the money is stored and at the same time customer can get his accou nt information. They introduced the plastic cards called as the Debit Card. This card can give access to the customer to either withdraw or deposit money, get i nformation about is balance all this by following few easy steps. And the ban s have also concentrated more on the security issues also where the customer would not have to worry about misusing of his/her account information. The customers

The main question rises is that the retail ban customers are able to li e this technology services are more interested about the older tradition that had a ban ing staff s personal touch to it. As the services that the customers receive ar e given by the ban s are after wor ing hours, the help is available to the custo mer 24/7, with given accuracy and reliability and at low cost. These have become important to the retail ban customers when compared to the traditional system. The new improved technological help that the ban s are getting have become very famous among their customers (Milne, A. (2006). With the retail ban s reputation in the ban ing industry it has to thin of new strategies to satisfy their customers and also eep their loyalty. Understandin g what are the important pointers about the customers that would eep them satis fied. Meeting the customers expectation should be the first thing to eep in mind of the ban to eep the loyalty of the customer. Everyone nows that customers are more nowledgeable and more s eptical than ev er before and that in today s environment they do a lot more homewor before com mitting to a ban s service. Many consumers will chec products and prices onlin e before ma ing a decision about what to purchase. HSBC probably has a business objective to drive more transactions to its website which is understandable, but if you want to maintain trust, you want to maintain trust, you should aim for m aximum transparency (Shu, W. and Strassmann,P. A. (2005). In the retail ban ing industry they have seen a speedy growth due to the Web tha t is creating great opportunities for the new businesses in the retail ban s. An d it also shows an important method to see available ban ers in the mar et. Expe rts estimates that consumer use of on-line ban ing services will increase over 2 0 fold by the end of the century. Geography and the number of branches become ir relevant and community ban s are able to offer the same level of service and con venience to customers as the largest ban s. In the past over 60% of existing ban customers have cited ban selection to be based on convenience of location. Fo r the customers of today, convenience of location includes the availability of 2 4-hour access via the Internet. Current progresses under electronic have made the growth under electronic-based s elf-assistance (et al. 2003 Dabhol ar). These growths are modifying the method wi th which assistance business and users communications are increasing the host of the study and procedure problems with respect to the release of e-assistance. E -assistance is evolved into highly significant to evaluate the failure or succes s of technological business (et al., 2001, Yang), yet even to give the users wit h great nowledge regarding the communicative surge of data. The economical method throughout the globe has been experiencing many modificati ons. Achievements and alliances, liberalism, enhanced rival, modified data metho ds and electronics, and man means with distinct talents are simply some impacts wh ich are effecting the ban ing commerce (Pereira, 1995). Electronic is the progressing moving impact today, in distinct organization. As a result, It is essential to review the interests under electronic and their scope

got habituated with these technology and they started to withdraw money on a fre quent basis. And the many other applications were introduced in the ban ing sect or by the information technology li e the online, mobile service, SMS service, e lectronic authentication and electronic signature services (Rohlfs, J. (2004). A nd the ban ing industry has also ta en care of the security as it plays a vital role when the transactions are through the Internet. A secured site is provided to the customer to perform his transactions through the Internet. No other indus try has gained profit from this as the ban ing sector. As in the middle of an ec onomic fall and the reforming of the financial legislation to the ban ing indust ry in the past few years the impact of these information technologies innovation s on the customer behavior was very huge. The information technology has introdu ced new ways of delivering retail ban ing to the customers and hence retail ban s have found themselves at the adaptation of technology for past decades.

in the ban commerce (1994, Walter and Saunders; 1994, Sethi and King). This is specifically significant to determine the electronic which is the labour exhaust ive actions, decreasing assistance and functioning rate, enhanced assistance sta ges, and enhancing the affectivity and rivalry of the UK economical division. Electronic is created based on findings in technology, item enhancement and deve lopment in apparatus, method, and automation and data electronic. Even, this con tains the mix of data, experience, and concepts (2003, Murungi). The reviews nee d the extensive responsibility of the interactions among assistance character, u ser fulfilment, and economical accomplishment where face-to-face communication b etween user and wor er and is the mere target. Currently, as a result, the elect ronics possess unusual effect on the development of assistance release selection s (2002, Bagozzi and Dabhol ar). (1994) Dabhol ar declares that if the user is in immediate interaction with the electronic then there is larger operation li e with web ban ing. Nevertheless, w hen there is no direct interaction li e by phone ban ing (because the electronic is not apparent to users who can merely press the phone numbers over their eyp ad of telephone) this is thought that there is low power obtained over the user in the process of this transaction. (1985) Bateson has made many numbers of revi ews on the requirement for costumers to get the power in the process of the assi stance encounters. If the user selects independently to utilize the electronic l i e the method of assistance release, then the scope is large in the form of fea ture attributes. A few of the feature determinations, which are largely essentia l to users, are productivity and accuracy (2000, Bateson). Assistance feature are identifies li e to get the ability to release the procedu ral advantages li e enhanced user custody costs and therefore to increase the fu nctional productivity and income (2001, Rust et al.; 2003, Cronin; 2003, Zeitham l.et al). Oliveira (2002) proposed that e-assistance feature is between the riva l abilities of the industry which result in firm accomplishment and Menor and Ro th (2003) loo at the problems to execute the assistance electronic and e-assist ances li e the important under assistance functions and Ward and Al- Hawari (200 6) shows assistance feature scopes on user fulfilment that result to influence t he economical accomplishment of ban s. Electronic and Assistance Quality The conception of, and quic progresses in, electronic-based forms, mainly the o ne with respect to the Internet results in important modifications under the way of the industries that contact with users (Zin han and Parasuraman, 2002; 2005, Bauer et al.). This fashion is well organized in the assistance company and the assistance givers are disputing to exchange in electronic to protect their futu re in 2012, on the April 12 technological period (2005, Prybuto and Zhang; 2005 , Bauer et al.). The dispute firm atmosphere under the economical assistance retail has even lead under more stress on ban s to enhance and use other released platforms with a l oo to impress many users and enhance the understanding of users and energize th e sincerity (2005, Bauer et al.; 2005, Lee and Lin; 2005, Parasuraman et al.). B etween many current-releasing platforms oriented is technological ban ing. Under its easy method, the technological ban ing implies the supplies of data of the ban and its items over the website of the Internet. The implementation of user friendly electronic (li e the menu moving the automat ed teller devices, phone, and Internet ban ing assistances) li e the sources of releasing the ban ing assistance and evolve into the general place under current decades li e the method of sustaining the user sincerity and enhancing the reta il investment. The common bric and mortar ban s ma e use of electronic to obtain the rival dis pute arranged over online ban s and also the concept to decrease the rate of giv ing assistances which were released inclusively over personnel ban (2003, Josep h et al.). Virtually, organizers and companies comprehend to give the feature user assistan ce and it is the important procedure element under business income. The signific ance of assistance release and its scope to enhance the fulfillment and custody of users, enhancing the interests and retail invests, and enhancing the allied p

icture are not exaggerated (1994, Lewis et al.). Li e many alternative assistanc e givers, the ban s do go on rapidly to advance in electronic li e the method of functioning the rates and impress modern users and obtain the facility and elec tronic novelty possibilities of their abiding users. Assistances, over description, are indefinite and simply copied. They are split under assistances of high-tech or high-touch. High-touch assistances are mainly relying on the public under the assistance method to form assistance. High-tech assistances are important depending on the utilization of automated forms, data electronic and alternate inds of physical means. Nevertheless, one must always now that even high-touch contains the physical means and electronic-based forms which should be functioned and merged into the assistance method under the user -oriented trend (Gronroos, 2001). Hence, under this review, the electronic ban ing assistance contains both high -touch and high-tech assistances. For instance, high-tech assistance contains Sh ort Messaging Service/ Internet/Telephone (SMS) and ATM devices. High-touch assi stance includes guidance and personnel services to utilize the assistances. Feat ure is distinct and is root from the possibilities of users. Thus, it is importa nt to recognize and plan out the possibilities for assistance and combining thes e possibilities under the form to enhance the assistance feature. Executing and determining assistance feature is very important method. The feature has been described from distinct outloo s and introductions, based o n the human creating the description, the calculation used and the framewor und er which it is accomplished. This has been mentioned li e the best agreement needs ( 1995, waterman and Peters) benefits of health (Juran and Gryana, 1988), value (Feige nbaum, 1995) and getting and/or increased user possibilities (Parasuraman et al., 1988). Sometime, the users request features face and their outcome attitude is copied in the form of behaviour against consumption attitude that resulted the r esearchers and identifier to the feature li e very essential determination for u nending form of survival and accomplishment. Feature under the assistance function is basically made at the time of fact (1989, Carlzon) and (2001) Gronroos implies it li e the time of chance where value is in cluded to obtain the assistance feature. Nevertheless, as soon the user leaves, the new time of fact should be made li e the assistance recovery (1990, Hart et al .) to ma e the correction prior the issue formed. (1993) Vandermerwe moves ahead to say under assistances, providing and the wor ers are not separated. Ban s include great implementation assistance release electronic li e the method of improving the assistances, which is commonly given by ban personnel. Execut ion outcomes both based on the requirement to decrease the rate to release the a ssistance mainly by personnel and the complement should obtain the dispute arran ged by electronic change rivalries (Boyers and Lederer, 2002). Modification unde r the ban ing company li e the output from liberalism, quic world web, and the increase in own property have hence created the execution of delicate release me thods (for instance ban ing online and telephone, automatic website and remote t eller devices and so on) the procedure needs under several situations (1994, Lew is et al.). The issue with electronic under assistances is that it is the ability to create the time of fact the automatic nowledge, deficiency in feeling. For the user to b e fulfilled, each should have the charge to assist the user in the management. ( 1995) Berry discusses to rival for s ill under wor ers to arrange the increased standards and to remain on standards and therefore Parasuraman (2002) underlined the significance to get the aim and synonyms to wor ers and wor s and to streng then them without any ris of revenge. Moreover, modifying the management method to energize the wor ers to accept the correct first moment intellectual is import ant (2000, Oa land). Therefore, the training is significant and even it is expen sive and een accomplishment and should provide li e it is able to assist to enh ance the method organization and also to get the requirements and possibilities (2000, Oa land). Electronic is able to assist the public to satisfy their needs very productively and yet the industry is yet the merely as best as its wor ers (2001, Gronroos). Th e issue exists to recognize the single person and inspire the determinations and

controlling them in the correct path. It does not bother which assistance relea se is utilized and the assistance giver/assistance costumer interactions should be disciplined at each rate. Many users move online to satisfy their assistance requirements and the more rate-production and scalable the firm design (2003, Sc hultze). This organization among assistance feature and firm accomplishment does move the interest in e-assistance, online assistance, and web mar eting. This i nvestment has been later energized over the proof of less-assistance character i n a few framewor s (Zeithaml, 2002; Boyer et al., 2002). Zeithaml (2002) recogni zes the requirement for firms to target on the e-assistance under their e-firm, and to comprehend the significance of e-assistance feature li e the distinct pro cedure. Even firms should identify that the Internet nowledge shows the tag to be place on online user and it might be significant component under the organization of faith and interactions with users (Zeithaml et al., 2002, Yang, 2001). Technology in the Ban ing Industry With the growth in the technology Electronic growths have deleted the duplicatio n and time ta en actions and decrease the man mista es and increased the entry t o ban ing convenience. Also, electronic gives data to the user, which will be ve ry costly to give on the basis of person-to-person. Telephone ban ing convenienc e permits the non-fund transactions to be ta en place and then will need to go t o the branch prior. In the same way, the Internet ban ing permits the users to do the actions at a m oment and under the portion, which is suitable for them. (2002) Dabhol ar propos es which directly interact with such electronic also provides the users li e the sense of large operation. (2007) Smith is of the view, which electronic was ori ented under ban s basically to decrease the rate and yet over classifying functi ons of front and bac office and the electronic focused to increase the distinct operations. Nevertheless, the thin ing yet remains li e to sustain the fulfille d number of face-to-face contacts with the users. (2004) Rogers recognized five features or qualities of novelty, which influence the cost at which novelties are accepted (and finally their useful methods): th eir appropriate benefit, affinity, interaction (observability), complexity, dist inction (trialability). Moreover, the qualities were further included and obtain ed the threat and economical and social rate (2005, Zeithaml). Under the classification of assistances under electronic-based assistance releas e selections Dabhol ar (1994) proposes many particular divisions, which would us e for the companies for employing the electronic based assistance release. The d ivision recognitions who release the assistance, that is, the person-to-person, un der which the wor er ma es use of the electronic or user to electronic li e util ization of an ATM. The second classification views on the assistance released. If at all the websites of assistance business then at the home or office of the user or neutral website li e the location of an ATM available at an airport. The u ltimate classification views at the interaction of the user with the assistance function for direct or indirect li e under the situation of telephone ban ing. (1994) Dabhol ar contracts that there must be adaptability under the model of t he electronic to permit the users to create modification in the process of the t ransaction and ma e present for the user assistance adviser when needed, with dec reased stay. It even increases the model problem of enough selections for web ban ers and ATM/Telephone. Under many situations, the transaction happens in a stab le place and the presence of the wor er do not always be possible because these conveniences sometime function per day for 24 hours and seven days wee ly. Constant developments under the data electronic allowed the ban s to give their assistances under a direct method to be suitable for their items in a good way f or the requirements of clienteles. Even though, ban ing is the experienced firm and the data technology was basically utilized to monitor the administrative met hods. The movement from controlling to information by ma ing use of data and its surge to intimate the organizers to give the chance to now the attitude of the user and reply at the correct moment. The chasing form refers to the method or alternate form of technological ban ing :

The ban ing personal computer (PC), virtual ban ing, online ban ing, home ban in g, and phone ban ing, Internet ban ing, remote electronic ban ing. The Internet or online ban ing and PC ban ing are very sometime utilized for label. Neverthel ess, this must be cited, that the words utilized to mention the distinct inds o f technological ban ing are utilized correspondently (2003, Dir de Villiers). Internet ban ing is assumed to revolutionize and change the common ban ing compa ny (Mols, 2000). Ban ing assistances are simply mechanical and digitalized and h ence based on functional outloo , they lend themselves to the web. The ability o f rival benefit of the web for ban s occurs in the fields of decreased rate and fulfillment of user requirements. As per Siau et al. (2001), m-business (mobile business) contains WAP and include s a few of the qualities of mobile commerce that contain Ubiquity. Mobile commer ce allows the customer to get the permission for the date and they are expecting the customer under personalization, the cellular broadcast field. Because of fe w of the memory ability of the mobile hardware, the software allows the good deg ree of solving and dividing to get the requirements of mobile costumers, adaptab ility. The movement of the hardware for instance the cellular handsets allows th e customers to have the transactions and/ or get the data when the customer is b usy in alternate tas li e functioning or travelling or dissemination. Automated Teller Machines (ATMs) are even called as technology cash device and t he electronic device allows the user to get the paper amount or going with alter nate ban ing transactions after inserting (msn) the encoded plastic card. Automa ted teller machines (ATMs) use of convinces which ATMs give. The present ban ers are concentrating on how the customers will transact and it also shows their traditional ban s against their online challengers. According t o Fletcher s Research "around 200,000 people in the UK are already ban ing onlin e and predicted seven million would be by 2002." According to Vernon (1999) with the Internet the ban ing brands should face the competitors to attract their cu stomers, which will be hard to focus due to pressure. "By the year 2005 two bill ion people will be on the Internet representing 90% of the buying power on the p lanet." 1.2 Research Objectives: The research objective will show the purpose of this dissertation. The five obje ctives are is as follows: To evaluate the ban ing industry with IT and Security systems. To analyze customer level satisfaction before and after IT impact on ban ing ind ustry To understand how the IT changed the ban ing industry present and future. To review the major changes in ban ing industry with effect of IT and security s ystems To describe major changes in HR with effect of the IT impact particularly in ban ing industry 1.3 Methodology Adopted: The main aim of this dissertation is to study the IT impact and Security activit ies which are adopted by both private and public ban sectors. The country consi dered in the study was India. The main reason behind in selecting this country i s as it has more number of ban s and very large population who has all grades of assured income levels. 1.4 Collection of data: A small sample survey was conducted in this study and required primary data was gathered from questionnaire (annexure) which contains the data/information about the IT and Security activities followed by private and public sector ban s. It also had the information about the customers received facilities. Now the second ary data was gathered from newspapers, magazines, Internet, journals etc.

1.5 Sample plan: Sample unit: In this dissertation six ban s where three were nationalized ban s that are Punjab and Sind (PSB), Punjab national Ban (PNB) and State Ban of Ind ia (SBI) while ICICI ban , Axis ban and HDFC ban as private sector ban s were randomly selected. This study was restricted to the staff of private and public sector ban s of India. 1.6 Sample size: Sample sizes of 10 employees were selected randomly from each ban . As the CRM a ctivities are adopted mainly by ban s employees to satisfy, retain and attract th e customers to ma e them as their long term customers. But for the subject relat ive interviews only specified in the dissertation. 1.7 Sampling Technique: A suitable and appropriate sampling technique was followed to conduct the study. In this sampling technique participants are selected based on the requirement. The technique is li e the way of conducting the interview and scrutinizing the a nswers based on faith and fair answers related to our study. Assume that we have interviewed near about 15 people and mostly out of 15 near a bout 8 people will give irrelevant answers and some answers are not related to o ur study. But we can ta e only some answers which we feel the answers are relate d to our subject and it should be honest. 1.8 Data analysis and Interpretation: The obtained data is classified and summarized to improve their strategy from re sult. After conducting questionnaire the data collected from the participants wa s organized by finding the response rate. By using this percentage was founded a nd summary was made. 1.9 Limitations of the study: Even though special care was ta en while conducting the study there are some lim itations to notice which are explained on following: 1. In research process time is the main constraint to consider hence only f ew ban s were selected to do study. 2. The result of this study will depend on response of the participants. Th erefore the selected sample may be or may not be considered as to represent comp lete population. 3. As this is an open category survey there may be chances that the partici pants may give their opinions personally to justify their interests. 4. Few questions were not answered by the participants due to lac of nowl edge and not nowing some concepts in IT and security activities.

Chapter - 2 2.0 Literature Review: Ban ing industry is one of the best customer centric industry and with the impr ovement in technology it lead to a major change in all its operations as it has bought a sudden increase in customer satisfaction and customer loyalty, that lea d to the increase in profit. Earlier the retail ban ing was functioning in a per sonalized style that is the customer had to go to the ban to do any transaction s and they also had to wait for their turn to do the transactions. Four ey forms of technology dominated business culture in the ban ing industry: Jones T., 199rrA new trend culture in the new Era. (Ibid) "A ban collects money from those who have it to spare or who are saving it ou t of their incomes and lends this money to those who require it"(Crowther, 2006) Earlier everything in the ban s was stored on paper that customer information, l edger boo s, receipts, account information and in and out management of ban s wa s stored in the papers. Then the introduction of the first software the data war e was introduced by the information technology and storing the information was e asy and they didn t need a room to store the data. This was the first impact of information technology on ban ing industry. Then they introduced the plastic car ds which had a customized personal identification number called as the "PIN numb er" which would be allotted to individual customers specifically designed for pr ivacy of the customer. With this plastic card called the Debit card customers ca n get information about their account a saving or a current account from the Aut omated Telling Machine they can deposit or withdraw money within seconds (Salone r, G. and Shepard, S. (2005),. Then the Internet influenced business industry. With the entry of Internet the b an ing industry was the one, which benefited the most. Customers who travel a lo t it was becoming difficult for them to transact. Then the solution that the inf ormation technology came up with is the online service, which would ma e the ban 12 available 24hours a day and 7 days a wee . Customer is as ed to online to a secured site in which he needs to answer the security questions and then the cu stomer gets his username and password for his online ban ing account. Where the customer can transact his current or saving account, can transfer the money to o ther s account with a different ban account number, also they can do the tradin g they can sell and buy the shares online. The customer can even ta e the print of his account statement all this can be done from any system or place. This was appreciated by the customers a lot and the ban too all the necessary steps to satisfy the customers. This is a convenient process where the customer can acces s his saving account or current account and transfer the money to another accoun t without even travelling. Through this online and wireless ban ing the customer can pay his bills without going to his ban . Electronic authentication and Elec tronic signatures ban s is used for proper identification of the customer s iden tity (Tam, K. Y. (2008). These processes would increase the efficiency of electr onic transaction. Secured online encryption is a safe of doing the transactions when the customers are online. Mobile ban ing is the calescent area in the ban i ng industry and very soon it would be replacing the credit and debit card system s in the near future. Most of the ban ing industry are sending the alerts throug h SMS to their customers it is safe and very useful now a days. Magnetic In Cha racter Recognition is a technology mainly used by the ban ing industry to chec

the processing of a cheque. These characters are printed with magnetic in to a toner. Security is one of the most important factors for any information technol ogy based processing and which is very critical. Many security measures should b e ta en care of. To validate the transactions the Ma er chec er concept, transmis sion of electronic messages over a networ in encrypted form, due authentication by means of providing digital signatures and storage of electronic records in c onformity with the provisions of the IT Act, 2000 and amendment 2008." Electronic funds transfer the customer could be able to transfer up to five la h s to any ban in any city or state or country with this service. Electronic bill payment this service would allow the customer to pay the bills faster and with more ease they can operate this service as this is one thing a customer would ap preciate is not to go to different places to pay bills but at one place they can pay all their bills this service would provide this to the customer. And the ba n ing industry can contact the customers with any updates or any new schemes or new plans by sending a message to the customer s phone and customer can even get his monthly account statement to his email within seconds. Centralized ban ing core is a terminology used to describe a process, which is provided, by a group of ban with is in networ with each other. Here the customer can access his fun ds from any of the branch, which is a member of the networ ban ing. They can de posit or withdraw or any other information that they need they can get it. This ind of ban ing has become in almost all the states and countries where the ban s are under core with other ban s. As the retail ban s introduced new services for the customer they have also mad e sure that whatever the customer as ed for is done. The customers in the initia l stages had a notion that security would not be there when they are transacting through internet but the retail ban ing has made sure that the security of data would be at the top and every transaction that the customer would do would be i n a secure zone and all the passwords and pin number were also encrypted. So it became easy for the customer to transact without any fear online. The service wh ich is provided to the customers is personalized when compared to the traditiona l ban ing the new technological were customer centric and can be accessed at any time and from any place (Oliner, S. and Sichel, D. (2000). These things have ch anged the customer s psychology about ban ing and retail ban ing become even eas ier to the customers.

Earlier the customer had to visit the branch for any queries. But now if we loo at the usage of ATMs have increased to a high extent which is a remar able beca use of the fact that in olden days internet was nowhere in picture but now in th e present context the usage is ten times more than olden days.

This will describe the different types of new technologies or the electronic met hods, which are using by the present ban s. The retail ban s should find and use these technological inventions for its distribution channels. Combining differe nt technological innovations together to form an Electronic ban ing, here the El ectronic ban ing is developed due to the electronic delivery channels hence the name is given as electronic ban ing. All the services are elaborated in various forms and also in the past years many firms and organizations are adopting these services and came to now about the importance of wor ing together. Now the ban ing industries have seen this service and this had evolved a new picture in the ir businesses as the world itself has seen the growth in the recent years in thi s new technology. The various forms of electronic delivery channels are explaine d (Koza , S. (2005). ATMs (Automated Teller Machines) (Rose 1999) the definition of an ATM is "an ATM combines a computer terminal, record- eeping system and cash vault in one unit, permitting the customers to enter the ban s boo eeping system with a plastic card containing a Personal Identification Number (PIN) or by punching a special code number into the computer terminal lin ed to the ban s computerized record s 24 hours a day". Once they get the access it starts to offer the services of t

he retail ban to its customers. These machines can be located outside the ban , in the malls, airports and in all the major locations in the city apart from th eir home branch. The main reason why the retail ban s have introduced this servi ce is for cash dispensing. But later on with the innovations in the information technology the ATMs have started to provide many other services li e the funds t ransfer, bill payments, deposits, and mini statement. The retail ban s have opte d for this service from the ATMs because it had a competitive advantage when com pared to other services. With the combination of both the services that is from the ATMs and the human tellers during the pea ban ing hours it gave more produc tivity. As it saves lot of time of the customer instead of standing in the queue in the ban they can directly withdraw the money from the ATM as they can utili ze this time in doing something else. For the retail ban s the ATMs have proven very cost efficient which gave high productivity in a less period of time when c ompared with the human tellers. On an average a human teller can give service to about four thousand three hundred while compared with the transaction of the AT M it is six thousand four hundred and if the human tellers ta e a brea in betwe en still the service is continued by the ATMs during and after the ban ing hours . 2.1 IT impacts levels on the Ban ing industry: 2.1.1 Personal Computer-Ban ing: PC-Ban ing is a service which allows the ban s customers to access information about their accounts via a proprietary networ , usually with the help of proprie tary software installed on their personal computer". If the consumer can easily access he can perform many functions, which are provided by the retail ban . As this will also increase an awareness and importance of computer literacy among t he customers in turn it will increase the usage of personal computers. This will definitely support the growth of the PC ban ing service which will virtually co nnects the branch ban into the customer s house or the office. 12 available 24 hours a day and 7 days a wee . This in turn would benefit the ATMs and the Telep hone ban ing (Rose, 1999). 2.1.2 Telephone Ban ing: "Telephone ban ing (telephone ban ing) can be considered as a form of remote or virtual ban ing, which is essentially the delivery of branch financial services via telecommunication devices where the ban customers can perform retail ban in g transactions by dialing a touch-tone telephone or mobile communication unit, w hich is connected to an automated system of the ban by utilizing Automated Voic e Response (AVR) technology" (Balachandher et al, 2001). Teleban ing has many benefits for both the customers and to the ban s according to Leow (1999). Mainly for 12 customers it can give improved easy methods to ac cess which is enhanced and the time can also be saved. And according to the ban s perspective these services related to the telephone are substantially lower t han any of their branch services that are provided by the ban and it costs very less compared to all these. It is similar to the impact that the ATMs produce o nly exception is that it cannot dispense the cash li e the ATMs. The teleban ing delivers the conduit that gives service even after the ban office hours. It in creases the continual productivity for the retail ban . The retail ban s offer i ts services to the customers at their home or the offices so that it could avoid to go ban for any ind of need, so this method may save time and can also impr ove the productivity by providing greater convenience to the customers. 2.1.3 Internet Ban ing:

According to Essinger (1999) the idea about Internet ban ing is to provide custom ers access to their ban accounts via a web site and to enable them to enact cer tain transactions on their account, given compliance with stringent security che

c s". According to the Federal Reserve Board of Chicago s Office of the Comptrol ler of the Currency (OCC) Internet Ban ing Handboo (2001), Internet Ban ing can be described as "the provision of traditional (ban ing) services over the inter net. Internet ban ing offers more flexibility and convenience to its customers whom co mbined with a virtually absolute control over their ban ing. Service delivery giv es the information to the customer about the new ban products and many more ser vices also about the transactions that are being conducted by the retail ban s. An alternative delivery channel for the retail ban s is that it can reach the cu stomers by PC-Ban ing and Teleban ing, which will improve the productivity. Alon g with the improvements in the huge productivity it can also have an advantage t hat the distance hurdles and time are eliminated. The retail ban ing will contin ue its productivity with unexpected chances of ban ing to the customers. Electro nic Fund Transfer Process will be very useful to the customers that they can tra nsfer money from their account into merchandise account for buying products at t he purchasing place itself using online transaction which is called Electronic F unds Transfer at Point of Sale (EETPoS). A Point of Sale will use the smart card li e debit or credit card the funds can be transferred by activating the facili ty Electronic Fund Transfer Process. Due to the increase in the productivity of the ban has resulted in the use of E ETPoS which helps the customer to pay for the purchasing during shopping by avoi ding giving cash to them and also can be useful instead of using cheque or withd rawals for the shopping. This service can wor even after the wor ing hours of t he ban s, and hence the productivity increases for the ban s during non-ban ing hours. This mainly saves the customer energy and precious time to go the ban s o r searching nearby branches to withdraw money or at least search for ATMs so thi s may lead to loss in the productivity of the ban s. 2.1.4 Branch Networ ing: "Networ ing of branches is the inter- connecting and computerization of geograph ically scattered standalone ban branches into one unified system in the form of a Wide Area Networ (WAN) or Enterprise Networ (EN) for creating and sharing o f consolidated customer information or records. Thus there will be speed rate in the transactions in the inter-branch without th e distance and time that are eliminated. So the productivity time period will al so increase. Since there are more number of branches for a ban to serve its cus tomers and under one ban there will huge labor wor ing in the branches with a g oal to improve the productivity in each and every branch. The customer should tr avel to near by branch and spend more time to do production activities. Are the customers of the ban today are they more satisfied and better served from their ban s with the innovations or they are happy with old format that has a human a pproach to its services is the main question. The factors li e availability of i nstant help, availability of service after the office hours, convenience, accura cy and reliability, low cost for the usage are important for the ban customers. Customer satisfaction is Result- Expectations" (Dunne, T., Foster, L., Haltiwang er, J. and Tros e, K. (2000). To measure the customer satisfaction the tools are categorized into three levels of satisfaction, which based on the model of thre e levels of satisfaction by (Kano)

1. Desired quality tools surveys on customer satisfaction which is only way to now about the customers whereas the perceptual surveys have the views of the com petitor s customers. 2. Expected quality tools tal s about the complaint system. 3. Excited quality tools shows the focus group of the future invents. Innovations in the technology which are adopted by the present ban ers are divid

ed into three categories as stated by (Fisher, 1998) 1. Transparent Customer and customer technology shows the core of the operations in a ban . This is the technology, which the customer only expects. If the cust omer is satisfied and the technology reaches their expectation then they will re main calm, otherwise the consumer would contact the ban quic ly to give his fee dbac on this or gives complain. The main example would be if there were no faci lities to see the account transactions in statement, the customers will expect f rom the ban s even though the technology and the ban process are transparent. F or example let us see the problem of the statement was delayed by a technical re ason the customer would feel angry that the normal standard of service as expect ed has not been met. 2. Customer Independent is a technology which would involve the customer s cond uction and the transactions which are completed within the ban is mainly indepe ndent of any human contact with the ban li e the internet ban ing, phone ban in g and the ATM s which would not require any assistance. 3. The ban employee will assist a customer and he uses the customer technology to finish the transactions li e the customer service in the call center would us e the customer relationship management to under the file where the customer deta ils are stored in the customer profile and then the customers are contacted and enquire on their ban ing transaction problems and also provide the billing up to date.

The retail ban can be attributed according to Spiggle and Sewell s model into t hree types 1. Locations for the retail outlets are at variable distances and travel time an d assortment. 2. Consumer psychological sates li e the perceptions, attitudes, attribute weigh ts and image are directly viewed as the preferences and shaping choice of patron age. 3. The characteristics of the consumer li e the lifestyles and demographic chara cteristics. This model of motivation was applied for the qualitative analysis in the questio nnaires for the survey and to study the selection reasons to the mode of service s given by the ban to show the customer satisfaction. "Customer Satisfaction and Customer Connection" by Cole and Wayland (1997) Do information technological innovations meet the customer expectations in the r etail ban ing industry, According to Cole and Wayland (1997). Considering the c ustomer s nowledge and customer s connection with technology and ta ing them as the basic needs for the customers connection strategy. It shows the new technolo gies found and are used to ma e the online connections for customers such as ATM s, self-service systems, Internet and the call center for the customer care syst em. According to these systems the technologies are increasing the capability of the strategic supporting changes through the improvements in the strength of cu stomer strength base and also explain the different methods used by these value chains and correlations and promoting these collaborations in the customers and suppliers. This report will help to now whether the customer connection technol ogy will be useful to satisfy maximum in the customer of retail ban ing and also increasing promoting collaboration of the potential customer base and the inter dependency, which was mentioned by Cole and Wayland.

According to Spiggle and Sewell (1987) the model for motivation for the ban lection is used to show as an example for the customer satisfaction.

se

From the results it is showing that customer connection technology always doesn t satisfy the customer maximum. Anyhow the customer connection technologies suc h as ATM will satisfy the customers in some cases when compared with other servi ces li e Internet ban ing and phone ban ing. According to Sloan management revie w: finding the outrage and also the customer delight (Bowen and Schneider, 1999) why the customers are not satisfied and why they are satisfied? It may be becau se of the ban technological services, customer li ings, or the attributes or th e customer characteristics? There were many studies done by the mar eting perspective to understand the cust omer s satisfaction but psychological explanations of these inds of behaviors a re little explored. From this study we can see the explanation in our research from the customer s perspective of his internal state. And the retail ban s have to give many attributes and services and can see the whether the customers are satisfied. According to Sloan management review 1999 there are only two methods of thoughts, which will describe the various stages of customer satisfaction. Fr om Met expectation method we will conclude that by reaching the customer expecta tion can lead to customer satisfaction. If we cross their expectations then can ma e customer delight. Always the expectation levels will be an increasing one a nd dynamic. The personal expectations are more than the personal status, which a re always tough to estimate. The Needs Based Model will be helpful to satisfy th e customer in three aspects of the customer such as security, justice and self-e steem. This model will explain that the needs are focused on the customers physio logical behavior and to reach their expectations will concentrate on attribute b ut not on the customer. 2.1.5 The Downsizing of Ban s:

There are many levels in the ban ing structure li e other industries have. But i t is very difficult to face this never-ending competitive mar et. The higher lev els of management will interact with the primary line managers with the help of availability of the technological information. This is also useful while horizon tal information transfer among the departments. (Jacques M., 12 June 2004,p.10/8 ) the horizontal information transfer is used to decrease the middle management in the management structure. 2.1.6 The end of cross subsidy: Many ban s have been wor ing on the small account holders prices, which are subsi dized to get more profits. These are high value transactions with less volume to subsidies the low value transactions with large volumes. Since it is ta en as a positive aspect but it may lead to negative effects on the ability of the ban s to compete the mar et. Anyhow "Ban s now increasingly accept that they must rec over transaction costs from those customers that incur them" (Channon D., 1993, p146). The main reason for this step has been observed from the Customers servic e revenue matrix- if the losses are increasing by many of the customers- it is i mportant that the services should increase to twenty percent, which may return l arge profits to the ban s. The less revenue ma ing customers should bare the transaction charges. There sho uld be a strategic reason if those customers are not following it li e the stude nt accounts. This may affect the customers to do transactions with the ban or i t may also decrease the revenues from the profit ma ing customers and may have m ore burdens on them. This step will ma e to eep the large incentives to attract many of the profitable customers in the mar et. However Economist Vilfredo Pare

There are many factors, rvice sectors prefer to ational, there has been of customer awareness,

which influence the ban s in downsizing. As financial se globalize the business from the national level to intern huge competition in the international financial services availability and information.

to (1848-1923) argued in his model "in order for maximum welfare position to be reached then the "ophelimity"2 of some should not increase to the detriment of o thers". (Sloman J, 2004, p.400) the main advice, which is given here, is that to get more profits the ban ing elements within it should not affect the other fac tors for subsidy. This pricing method has been seen in the First Chicago Ban . T his policy was adopted by the City ban to some group of retail customers it att racted some customers and removed some use less customers. If there are savings in the price drivers that cannot be transferred to the pric ing policy, by this nearly eighty percent of no profit ma ing customers can be a ttracted. The savings made should be used in decreasing the prices and use these small accounts in returns of revenue or to attract new profit ma ing customers. From the study made in the year 1995-96 reveals that there may be chances to de crease the interest rate for the medium and low access accounts when compared to the long period accounts. Even though the interban rate is falling the interes t given to the 90 day larger and medium balance maintaining accounts are increas ing gradually. 2.1.7 The move away from the Branch Networ : Basically the whole ban operations, trainings, personnel and lending are comple tely depending on the ban branch manager (Smith S., Wield D., 1994, p.98) "in t heory promotion was open to anyone The relationship between Interban rates, dep osits and mortgage rates, who could demonstrate the necessary aptitude and de dication " From the past few years maximum ban s are not following the need to facilitate s pecial services to the corporate and personnel customers by the normal ban ers. It has observed that the branch managers are feeling more difficult to provide s uch special services to their high revenue ma ing clients. The branch manager sh ould follow as below:

It is also planning to perform significant method of wor ing a corporate ban ing function. One more important point is there that it does not have the suitable decision ma ing in lending the larger and medium balance accounts. It has consid ered as just errand boy to send a short message. Anyhow the main thing to be r emembered is that the branch manager does not have the advantages in both traini ng and experience since it may be the treated personal thin ing. But anyhow it h as been advised that the managers are "lac ing in some aspects of credit evaluat ion" (Channon D., 2003, p.210). 2.1.8 Hub and Satellite Ban ing: Hub branch is the main center of the system where the complete account services are provided. It will be the place where administration, special lenders and tra ining managers are needed. The processing of data can be possible in the same Hu b building or in a different data processing area (DP). The word processing and standing order cler s are generally centralized. This DP and Hub will support a satellite networ or offer many limited services to the personal customer in the branches. "Many satellite branches have no managers"(Smith S., Wield. D., 2004, p.102). This method is very much useful, as it is not allowing in replacing the de-layering and old general managers. "The career structure has become horizont ally and vertically integrated (ibid). This limited the opportunities in career d evelopment for the labor. The main reason for this situation is that the traditi onal hierarchy has been removed and replaced with the insular levels, which will not move constantly.

a. b. c.

Increasing non-ban ing services for salesman. Branch administration head decisions. The central point of reference for personal ban ing.

The hub will also serve the corporate branch but it does not offer any special s ervices to the business customers li e by answering solely. It has been observed in some cases that the ban s are having limited savings and in some cases it fo und that it has effecting the productivity. By reducing the branch managers the savings obtained are used for appointing the new clerical and other staff that a re in need for ban processing (ibid. p.103). As the flexibility has decreased a nd hence there has been decrease in the productivity. In the higher stages of sp ecializations may be reason in increase of the staff costs. Let us see one examp le that in 2004-2005 Barclays ban has removed 3400 or -3.7% of staff. In this m ean time the staff prices are raised quic ly from 2607 to 2728 million pounds or 4.6% of increase. The clerical staff costs are raised to 2.75% (Bifu). Hub and satellite ban ing elements are communicated with each other by relief staff cove r, information system (electronic or paper) and managing teams to loo over the networ . There is a need to increase the relief staff cover since there is a spe cialization in the ban process. It can be seen that the ban ing system is inten ding to include Tyalorist theory in their methodology. There is necessity to see the inputs li e the Ford plants, which are not proof of ban ing networ . It als o says that: While new technology, business process re-engineering and the total quality move ment may have created more efficient companies, Efficiency should not be confuse d with competitiveness. Competitiveness, relies on innovation, and innovation re lies on people (Don in R., 2005b, London page 12) When the ban s are not able to become competitive and advanced by technically, i t may lead to non-productivity. It means, when there is any severe crisis occurs then there will be no specialists and man power to clear the problems. So it is advised to always loo underlying cause for any ind of change and innovations in terms of technology. 2.1.9 Does technology give ban s a competitive advantage? : To become competitive advantage it needs to develop a suitable, different, uniqu e and impossible to copy. So technology will not answer this question. Sustainability demands that a firms competitive advantage resists erosion by comp etitor behavior or industry evolution(Porter M., 1985, p20) M. Porter advised that to decide whether technological change will become compet itive advantage can be done by adopting some criteria: a. If technology is increasing then the ban products will become unique he nce many shares can be expected in the new mar et by eeping remaining things co nstant and as it has pioneering effect. b. The new technology should be made secure and protect from re-duplicating by others so that it can become sustainably advantageous. c. Even though if others can copy the technology the ban should use its co mpetitive advantage and increase its traffic rate. Pioneering may lead to a variety of potential first-mover advantages in cost or d ifferentiation that remains after its technological lead is gone (ibid., p172) From M. Porter says that the new technologies will not lead to the productivity of the organization or firm. These technological changes can be able to change t he structure of the firm effectively or may become worst. By considering this p oint it is suggested that technological change that improves a firms competitive a dvantage may worsen structure as it is imitated. (ibid).

The five forces within ban ing: It became very evident in some cases li e NatWests development case of Mondex and also for other firms li e NatWest strategic alliance and Tesco. Many ban ing se rvices li e cash handling when emergency to clear the cheque, traveller cheques are being strategically ready to replace with new elements by the Mondex, by int roducing new technologies they have worsen the structure of the process. 2.1.10 Security Impact on ban ing industry: Security is always an important aspect especially in ban ing industry where the ris of being hac ed by some hac ers is more li ely to happen so ban ing industr y have employed some techniques which assures the customers to have a safe and s ecure ban ing. Security has bring in a major impact on the ban ing industry and in the timeline theres been a major developments in the security level on ban ing different ban s have employed different security techniques so which demands th e customers to have a strong security with whom they ban with. 2.1.11Security and accessibility: The ban amount can be returned bac by the Internet users may be not sufficient . There are many problems with the customers to use Internet ban ing since they feel difficult to access to connect. It can notice that the problems raised in n etwor policing cannot be financial institution controlling or ownership of spec ific institution/individual. The main aspect to be seen is security many of the ban s are facing huge threat from computer hac ings. Recent events-notably one young Russian hac ers penetration of Citiban s own comput er system-show that ban s find it hard enough to eep their proprietary networ s secure (The Economist, 2005b, p.123) The security for open Internet system is highly ris y factors for the ban ing sy stem. If any worse thing happen li e hac ing then the Internet ban ing will ma e the customers to lose confidence. To overcome this problem many of the ban ers are using encryption of the data. Anyhow encrypting the data many not provide se curity it cannot be called as security system. If the system is theft then it does not mean that the whole data has gone within the systems since it accounts only for 8%. The new technology made modern systems where the central computers are replaced with PCs and file servers. Anyhow this type saving data is not advisable there are many chances of loosing data in this way of saving. From a report ana lysis organized by National consumer council along with The Department of trade and industry, UK ITSEC and ICL revealed that 9 from 10 are operating security br anches (Garrett B, 2007, p22). To improve the reliability the data is decentrali zed into networ . Anyhow the survey report says that 54% has lost the data. The main goal of the m anagement security is not only to protect from the viruses and hac ers but also it should ma e it clear and approximate. The authorized people only should acces s the data in a practical and useful way. It is necessary to satisfy both the ma nagerial and customers requirements in security.

2.1.12 Consumers & EFT: This explains that there is tremendous increase in use of electronic devices li e plastic cards and ATMs. From the American Ban ers Association many of the custo mers are not interested to ta e the pre-authorized credit transfer methods li e

paying the wages and showing reluctance if preauthorized debits are ta en li e p aying bills. Both are proportional to each other as income increases gradually w hereas there is decrease in payments for the goods and services. It is advised t hat the customers are not readily ta e up convenience without any limitations an d will react by ta ing economic worth rationality (King R., 2005, p43). The new technological innovations and ATMs are providing very easy way of ban ing to the customers. It will not say that the old systems are not useful or insufficient and are in f inal stage. This new innovations will ma e the both customers and ban s to acces s easily and also to hold up data effectively. But The more complex the architect ure of a computer system and its associated software the more li ely it is to fa il.(ibid., p.47)

The previous methods of ban ing li e manual cheque clearing and accounting are h aving more chances of errors than the today ATMs. Any of wrong deposit has occur red then they can be observed before all debits are posted. The modern ban ing s ystem is very much flexible that clearing of cheques can be done automatically a nd it can be displayed on the system more over all transactions can also be seen . Such a stream of poor credits may propagate through thousands of accounts befor e it is noticed. (ibid.) If this situation is considered as an extreme one then it may lead to credit blac out anyhow it is not suggested but it can be done. 2.1.13 Mondex Function: Even though the credit cards, cheques and debit cards has been introduced they c annot be replace by paper money. The new changes have not dominated the Global r equirement as primary payment is by cash. If the payment systems are done with c ash then it will give satisfaction and confidence in ban ing system. Mondex func tions will match with the cash that is transferred widely; even though it perfor ms special functions it should be widely accepted. Basically cash itself is the main asset than any other thing where Mondex is embossed in a chip of plastic ca rd wor s using a reading electronic device. The main will allow transferring mon ey to any part of the world only by monetary computer or telephone basis. Mondex is different from other ban system cards since they can ma e only individual c ard transactions as they have data base method. This reveals that the Supporting the infrastructure required for such a process m eans marginal cost per transaction for such initiatives is always li ely to be u neconomic for the lowest value transactions, leading to their exclusion or subst antial cross-subsidization (Jones T., 2006). Anyhow Mondex has planned a new meth od is to transfer the money without any third party to overcome the above proble m. But there are some connections with the ban s in certain levels of processing in the Mondex system of functioning. Anyhow the level of connection with the ban s depends on the type of transactions doing. Individual transactions are done dir ectly using the Customer Wallet transactions. Now if the transactions are betwee n the retailer and customer then the transferring will not be done directly usin g ban ing system, but the process will continue periodically transferred to the ban through the telephone networ from the retailer terminal Point of Scale (PO S).

If any of the system fails ill lose confidence on the are satisfied and comfort l arrange some way ban ing es down then it tend to a

then it will lead to a big problem as the customers w ban flexibility and quality of networ . If customers with the technological methods li e ATM then they wil available around them. In such cases if ATM networ go big personal tragedy since they commit to payments.

James Essinger wrote about Mondex in his boo as Electronic Payment Systems -Winn ing New Customers (2002), have a huge impact on the entire retail and financial se rvices business (Bifu 2004, p 7). By using the Mondex secured system of money tra nsfer using telephones has reduced the difficulty and ris of counting and trans porting of cash. Hence this will decrease the employees of the cashier and secur ity in the financial and ban ing systems. Mondex provides a facility that the fo reign currency can be transferrable into five currencies simultaneously in the g lobal level using the telephone networ systems. Thus the increased use of Monde x will reduce the travellers cheques and also the Ban ers Union can transfer the c ash to foreign countries without using the ban ing process (ibid.). Thus by usin g the Mondex method will increase the home ban ing process. This electronic method of transferring and payments will ma e to decrease in job s of cashier and cheque clearance in the ban s due to less use of paper in the b an ing process. One thing should be notice that this Mondex is eroding the Ban i ng system slowly. Anyhow this statement was refused in a telephone call made by Nina Humphries to Mondex international. She advised that the ban ing process sti ll continue and the communication can be seen in the ban s and cards. But she ca nnot explain the main reason behind the communication between them to occur. If the Mondex Wallet has purchased in the larger extent then the present ATMs can be easily replaced with direct transferring. The purchased Wallet can be used to c hec balance, deposit, transfer cash from or to other individual cards and withd raw money (Mondex, 2004, pp.10-2). Hence by using the terminal interconnection o f the ban ing networ the employers are able to pay there employees with chargin g of the Mondex cards, there is nothing to stop this process. Since this system is adopted as a payment system. It depends on the retailer and its wor ers embos sing on the cards. The question here arises is that will the people are ready to pay for this techn ology since we have free system of payment as direct cash exchange of cash. Apar t from these transferring charges there will be addition profit for the security for exchanging the cash. It can attract the new customers by improving the new functionalities. Anyhow the profits cannot be able to weigh the costs in small transactions such as newspaper salesmen and small street sellers are not able to do high transactions. Mondex uses in Swindon Mondex card holder Retailers and service providers Payphones Screen phones ATM s adapted for Mondex Car par s Buses [Based on information supplied by MONDEX] NatWest and Midland are estimating that Mondex will replace these 20% cash trans action in UK within 20-30 years (Bifu, 2004, p.8). This also advises that the ef fect of Mondex on the employment levels and ban ing system may not estimate up t o 20 years. In the mean while the ban ing system will completely become worst in the mar et and lead to disfunctionality. It will also show greater impact on th e basic functions of the ban ing. Hence Nat West and Midland are planning to int roduce new technological offers to the customers to become competitive advantage in the mar et by smart card offer. Apart from the ban s other financial systems are trying to innovative new payment system li e providing electronic smart car ds to do payments. Due to these new methods of payments, increasing competition the employment levels are decreasing it has effecting completely in the ban ing industry. Units 10,000 700 200 2,000 20 6 80

. . . . History and experience shows that when profits are under threat, WORKERS ARE TOO.(ibid. ,p.9) Experts are advising that the mar et share will fall tremendously in the credit card mar et position as explained in Competition between Store and Ban credit c ards, page 31. There are chances to become success in this new mar et. Anyhow if they are not successful in electronic cash mar et system then have bare penalty from the ban ing and retail ban ing system. It tells that the ban is dealing w ith huge investments and ris s. It not only deals with the ban ing process to be successful in the mar et with competitive advantageous methods but also to rema in in the mar et even if there are any ind of changes occur in the ban mar et environment. 2.2. The impacts of IT and Security systems on ban ing industry: 2.2.1 Enhancing profitability: It will not be satisfactory to provide the consumer with the desired product. If any financial institution intends to stand before the competition it should con centrate on the profitability. Financial institution should find the more profit able fields. They should invent the different methods to sell the product across more efficiently. It is easy to have the big share of the mar et as high produc t acuteness is there. Additionally the selling of more goods ma es the profits g o high. With the close relationship of the buyer-seller profitability rises. When profit ability of any organization increases share in the mar et will be more. To ma e some decisions in sales, mar eting and services ban s needs business intelligenc e. Ban s should include the high technologies to ma e the wor faster. This help s to fragment the data quic ly and overcome the technological hurdles. Different data of customers are saved at many places. This data can be accessibl e with some ways. With the variations in the industry build or with any merger a nd acquisition the information can also be distributed to less administrative ar ea. A well-managed CRM solution that wor s with different applications can initiate the compilation and analysis of data. This system is operated with lot of busine ss partners and suppliers which facilitate the data compilation that strengthen financial institution sales force. 2.2.2 Operational excellence: All the ban s must bring together its sales and services. It should use the vari ous channels which facilitates the portals for the consumers and wor ers. From d irect meeting to indirect online meeting, they should available on each possible ways of interaction. A highly efficient CRM solution should wor with all the m odes of communications. It includes fax, email, online portals, wireless device and interaction with ban employees. This gives a interaction between touch points to an wor bay and lin ed the wor bay to the all the business partners. This service enables the ban personnel o n any consumer s important events. These should be ready to ta e appropriate act ions. Each personnel are having the proper nowledge and s ills to achieve the desired goals of the organization. They have all s ill sets to deliver with high qualit y. What is relationship of the customer with the industry? The effective Custome r Relationship Management (CRM) system should be able to analyze this. It should provide the data to see the consumer stability in the relationship.

2.2.3 Benefits for the customers: When the consumer provided with easy access to the various products and services they feel blessed. The way to reach the consumer should be well planned and pro fessional. Industry can design better-personalized services if the data of the c onsumer is updated. Quic action to any issues faced by them. 2.2.4 Benefits to the employees: They will get enough time to focus on the customer demands and orders. All the p ersonnel are strengthening with the idea to provide the good quality services an d to fulfill the orders as they have as ed for. Rate of satisfaction will be hig h. The top-level personnel are strengthen with the data which is effective in bu ilding customer relationship and ma e the ma ing quic . 2.2.5. Benefits for ban s: There will be an ideal utilization of the resources. The individualized services provide the consumer faith and level of satisfaction. There will be better cons umer acquirement, hold and sale across. The goodwill of the industry should get improved in the consumers minds. 2.2.6 CRM challenges: Though CRM is the complete pac age which contains all the strategies of ma ing p rofits but still there are some loopholes. One of the main issues which CRM syst em is facing is to not meeting the expectation of reducing the consumer retentio n. This is the reason for the CRM downfall. What is CRM failure? What is the rea son for it? The major reason is that the entire organizations that are using CRM are not aware of its features. They are facing a lot of confusions about its ch aracteristics. There are many industries who give it a definition of business st rategies and others tells it is pertaining to technology. There is very less per centage of the industries which are successful after the installation of the CRM . It lost its interest as it was not able to meet expectations. There are nearly 755 of the projects which are facing the number of the problems after installin g CRM. Most of the project fails to get the desired results due to the various i ssues exists in the CRM. However the exact the rating if failure is just 5%. Mai nly the big industries are failed. Medium size organization has a high rate of s uccess. 2.2.7. Exorbitant Costs: CRM requires the large investment to manage its customer database. This huge inv estment considers being a big problem. There are some other expenses also li e m aintenance of the computer hardware, software and personnel etc. The additional costs are so high and number of expenses is there. Mostly the costs involved are fails to cover the return on investment from the CRM implementation. This leave s the CRM user with bad experience. This is what we call a CRM success and ultim ately CRM failure. 2.2.8 Inadequate Focus on Objectives: The second thing which needs to be ta en in the mind is that the aims and object ives should be clear. Whole management and employees should be well aware of the se objectives, so that they can wor towards the goal without any confusion. All the objectives should be clearly defined and well planned. However mainly when the CRM is going to be implemented and suddenly hard time hits, Industry lost it s focus on the goals, which ultimately vanishes. Sometimes goals gets changed an d lost their value. In that time companies ta en towards goals which are importa nt and ignores the one which are of less importance. This is the main issue whic h is faced by many companies while using CRM. 2.3 Conclusion of Literature review:

As in the ban ing industry the competitions is getting intensified day by day an d the customer s expectation are also increasing, acquisitions and mergers and t he main reason the globalization and deregulation and technological innovations are increasing have changed the scenario of retail ban ing industry. Which is th e customers preferred facility? Is the customer happy with the facilities providi ng by the ban such as ATMs, phone ban ing, internet ban ing and smart cards or they are interested with the old pattern of ban ing style which has the human to uch in it? This research would mainly focus about the retail ban ing industry, and tells th e customers intension in accepting their services from the retail ban s do they still have quality in their services and do they li e this new information techn ology advancements which are implemented by these retail ban s. The changes in t he technological field, which paved way for greater customer expectations, the c ompetition was intensified li e the acquisitions and mergers, globalization and deregulation have changed all the rules of the retail ban ing industry. The surv ey is a combination of questionnaires and interviews to chec or identify the ex pectations of the customer to the services provided by the retail ban s. Compari ng can chec the customers satisfaction the traditional services provided by the ban to the new and improvised services with technological innovations in the se rvices li e the Internet ban ing, Phone ban ing and ATMs. By chec ing the levels in which the customers compared to the traditional style of ban ing have used t he services. What are the main factors the customer focuses when he is choosing a service in their ban ? The surveys, which were done in India and in UK, try to assess the customers behavior. And the results show that most frequently used service is the ATM in both the countries. But the older and with lower education age group chose the ban tellers as it had the human touch in it.

Chapter - 3 3.1 Research Methodology: To gather the information the survey method should be used. To show the impact o f information technology and security system on the customers of ban ing industr y, chec ing all the information that they have collected does Data analysis used . Surveys or questionnaires should be prepared to chec if the customers are sat isfied by the services provided by them. Also ta e a survey of the ban ing offic ials for ideas or changing for the betterment of the retail ban ing industry. Also chec ing the current trends of the mar et and if they needed have to do a r esearch on this method and wor on it. This is a simple but a more concise data to show how the impact of information technology has helped the retail ban ing i ndustry change for better development while also eeping in mind the requirement s and queries of the customers and getting it resolved by opting for this implem entation of technology. A survey should be done among the ban employees to chec if the customer was ab le to adapt to the new technology or were they happy with the old system the per sonalized ban ing. The main the reason was the customers trust factor when they do the transaction online they always thin about the site which they use is sav e or not. Questionnaires should be given to customers to chec if they are satis fied with services provided by the retail ban and how easily could they adapt t o the change in style and adaptation in the technology. 3.2 Primary Research: The research has two main research factors which has been utilized they are qual itative and quantitative research styles. The traditional format of research is called the quantitative research and the qualitative research style is called as the interpreters research style. The dissertation has both the research styles. 3.2.1 Quantitative Research: Questionnaires are given to the customers to chec their views on the new implem entations in the retails ban . How the information technology has changed their view about retail ban ing the services which were introduced to them did they li e them. This analysis helps to assess the satisfaction of the customers and sho ws the reasons behind their levels of satisfaction. Here basically it shows the reasons behind their levels of satisfaction in using the new technologies and se curities introduced by the ban . 3.2.2 Qualitative Research: This research is mainly based on the interviews which have been conducted to und erstand the satisfaction of the customer in a better way. The method in which th e interview was conducted was they had a questionnaire that would as few basic questions and rating them when they were as ed to the customers. The usage of both these research factors shoed a more clear understanding of the aims and objectives of the study. The main reason for this survey is to analyze in the ban ing industry what affec ts the information technology and security systems on the customers satisfaction. a survey was conducted on the people based on the questionnaire ta en from Hills (1996) customer satisfaction measurements boo . This required information is ad opted from Woodruff, Donnelly (1992), Oliver (1997), Cardinal (1999), Johnson (1 998) and other available literature in the libraries and from Internet. By dividing various types of customers into groups based on educational level an d age and conducted questionnaire. This survey will mainly focus on the customer

satisfaction and their opinions in the retail ban ing services offered from the following methods: Internet ban ing, phone ban ing, ATMs, Ban Tellers. 3.2.3 Preparation of questionnaire: The main use of this survey is to see the customers valuable feedbac on the serv ices provided by the ban ers and comparing them with satisfied level. The servic es are offered to the customers by the retail ban ers by utilizing the old cultu re of service rather than the new information technology innovations services pr ovided to the customers. In the questionnaire there are 10 issues where the reta il customers will find when they use the services provided by the retail ban s. The customers are requested to rate the issues which of them were relevant to th em or not which were provided by the ban s human tellers against the automatic t eller machines, call center to internet ban ing and phone ban ing. And the data which is detailed shows the importance of the criteria which is used by the cust omers to measure their satisfied degrees while they are using the facilities of the retail ban s, and the association of the questions is seen in the given exam ple: if the consumers rates the availability of a wide range of innovative servic es and high tech services which is an important issue from all of them in order t o select a ban and they also accept that the internet ban ing is the high tech a nd innovative services, hence from the survey we can conclude that the customers are satisfied by using the internet ban ing facility. This interviewing process is held only on the randomly selected sample of people, the maximum interviews w ill held in the railway stations, premises of ban s and shopping centers. If the customers are above the age of 18 can easily access the retail ban ing and can do transacting with the ban s are eligible for this. The questionnaires are main ly filled in from the information which has been collected from the customers wh ich will reduce the problems of inappropriate reason from the ban s and reply fr om complaints. Some of this was answered through emails. Before plunge into the survey, there were interviews that were conducted on 10 participants from differ ent educational levels of different age groups to gather the feedbac on the que stionnaires on a trial bases. The main report findings and other factors and its effects are explained here. Do the ban customers using the ban tellers and us ing how frequently these facilities rather than Internet ban ing, ATMs, phone ba n ing and other services? Which are the customers ban ing habits? From this surv ey report we can find how often these ATMs are used in India and UK. Now the sec ond goes to the Human teller s service which is provided by the retail ban in b oth the countries. When the analysis made on the varying people in age groups an d educational levels in both the countries are as follows: (Table 1). 3.2.4 Administration of Questionnaire: The usage of the ban ing services will differ from many groups of people li e ed ucational levels and age of the retail ban customers. In both the countries max imum educated group people prefer to use human tellers. When it comes to the age factor there are chances of using the information technological innovations whi ch may be ATMs for aged people rather than to use human teller services (Table 2 ). But 45-55 group customers will prefer to use the human operator services provide d by the retail ban s rather than using the technology innovations li e ATMs? 1. Which facility provided by the ban ing is more satisfied the customers or whi ch mode of service is used frequently? 2. Do the customers of the retail ban s are satisfied more with the human teller s which is provided by the retail ban s or the technology innovations including Internet ban ing, phone ban ing or ATM machines satisfy the customer maximum?

Normally in the services provided from the retail ban s are the " automatic tell er machine", "human tellers/ operators", " phone ban ing without operator assist ance", phone ban ing with the operator assistance" and" internet ban ing" in Indi a and UK, and this will explain that the more satisfied services provided to the customers are by the ATM machines. The most important service dimension which is li ed by the customers is from the ATM which are suing the services of ATM is that it is available even after the office hours when compared to the human tellers services where the service is gi ven to them only in the office hours. Similarly the Internet ban ing and phone b an ing is serviced equal to the ATMs after office hours it is available. 3.2.5 Survey: The choice of the ban tellers is utilized more to ma e Ban transactions in In dia such as to apply for any loan or to ta e the ban statements and paying the bills. TABLE 1 Results from Survey (Question 6) ________________________________________

India App of Loan Update a/c Bill Payment UK App of loan Update a/c Bill payment

92/100 96/100 99/100 86/100 83/100 43/100

11/100 82/100 83/100 15/100 94/100 93/100 18/100 78/100 36/100

16/100 62/100 45/100 66/100 73/100 71/100

Which mode of service is least satisfied? In UK the ban customers are not satisfied with the services provided by the ret ail ban s li e phone ban ing few times it goes for the Internet service also. Ho wever in comparison to UK the Internet ban ing is low in India. Which dimension of service is perceived as important? We have listed in ten criteria in the questionnaire that customers will thin ab out it only after using the ban services. They are a. Convenience or the convenient locations b. Courteous customer service officers or the human tellers c. Service that is available after the office hours d. The ban ing services minimum ta ing time. e. Ease of use f. Minimal processing or transaction time by a machine or a telle r. g. High tech innovative services offered. h. No extra cost.

However in UK the maximum ban the ban operator services.

customers will choose the ATM facility more over

Human ATM Phone Internet Ban ing ________________________________________

Ban ing

42/100 65/100 79/100

i. Instant help or assistance j. Reliable accurate services. According to the results of the survey the two countries retail customers are ra n ed as "convenience convenient location" will be the best ban service offered. Each and every customer who too the survey in both the countries have chosen " reliable accurate services" as the second best ban service as the second best b an service. And may thin about the facility of high tech services offered, the report shows that the high tech innovative services offered is ran ed least and given low impo rtance. Do the technological services provide by the retail ban ers such as ATMs , Internet ban ing and phone ban ing are given importance? The technology innova tions are ran ed bit lower importance and still more than 80% of the survey cust omers of two countries are showing interest to prefer these technological servic es rather than ban tellers or (operators). And above 90% of customers prefer fo r new ban ing services with the technology innovations. TABLE 2 Survey Question 8 - Overall, do you prefer interacting with the Ban ing technological services over human tellers? ________________________________________ Findings INDIA UK ________________________________________ YES No 132 18 81 19

88% 81% ________________________________________

TABLE 3 Survey Question 10 - Do you loo forward to more technological Innovative ban ing services? ________________________________________ Findings INDIA UK ________________________________________ 85

Yes 134 85 No 16 15 % 86% ________________________________________

Do customers perceive cost? Ban customers in India and UK perceive extra cost that is associated with the s ervices provided differently in the ban . The survey customers ran ed extra cost a s important as reliable accurate services Why the ban customers preferring the Human teller or operator? When the ban ing customers are using the ban services li e human operator can h ave an advantage of any ind of help on the spot itself and also have better ser vice. Why the Internet and phone ban ing do not prefer more?

3.3 Secondary Research Analysis: This secondary research analysis report will explain about the facts of how to d evelop the literature review structure and analysis framewor . The sources for t his research which were obtained to mainly use in the literature review. 3.3.1 Press Articles and Industry Reports: Some important factors in the literature review used from these press articles l i e the interviews, opinions and from the surveys. This combination of informati on has basically helped to develop the literature review in an effective manner. 3.3.2 Related Boo s: The literature review was basically dependent on the boo s. These boo s show the theoretical aspects for the research which has been ta es from these boo s writ ten by different authors. Academic Journals and References: To show loyalty and satisfaction of the custom ers in adapting to the changes and implementations their ban s were doing with i nformation technology was seen in the journals that showed the li es and disli e s of the customers of the ban s. As this helped to form the basic structure for the surveys and questions for the interviews and the surveys, this information w as ta en from library and Internet. 3.4 Survey Questionnaire Analysis: This is explained in the following concept using literature review framewor tha t was developed to now the customer satisfaction level and loyalty in the retai l ban s and the impact of information technology on the retail ban ing services. The questionnaires are first tested as a pilot sample to determine if the quest ionnaires would provide the results in regards to the questions addressed. First the feedbac from the pilot research is ta en into consideration and then it is used in finalizing the questionnaire and then a final version of questionnaire is prepared with the final version of questions. There are three main sections for the survey questionnaires. In the first part c onsists of the retail ban profile questions. Then the next part will explain sa tisfaction and loyalty stages from the survey conducted on sampled people regard s to the impact of information technology on the customers of retail ban s. And the final part would show the characteristics that made the customer s satisfact ion and loyalty towards the retail ban ing. The starting section in the questionnaire had the profile of the customers which had the sample of their education, age and gender level categories which are im portant in this survey. To improve the capacity is the important aspect to show the difference between the choices in selecting the services that where provided by the ban s. The next section contains the details of the level of satisfaction and level of loyalty in this questionnaire. These questions are useful to now the relation b etween the customer satisfaction levels and the loyalty of them towards their ba n with the impact of information technology and the changes that it made in the services of the ban .

The ban customers ties and they also consumed reduced. ily they feel that s provide.

dont feel comfort with these phone and Internet ban ing facili feel that by using internet or phone ban ing the time may not They does not even access these online ban ing facilities eas they are not reliable and convenient as human tellers and ATM

The question assesses the customer s preferences over the ban tellers to the AT Ms or the Internet ban ing or to the phone ban ing. Do customers perceive cost? Ban customers in India and UK perceive extra cost that is associated with the s ervices provided differently in the ban . The survey customers ran ed extra cost a s important as reliable accurate services Why do customers prefer Human Teller/ Operator? Ban ing customers chose the human teller/operator when they are using the ban s ervices an ability to provide instant help and assistance as well as their court eous service. Why not phone ban ing and Internet ban ing? In general the ban ing customers do not see Internet or Phone ban ing services a s convenient. They do not thin that services can minimize the waiting time or t he transaction time. And the ban ing customers also do not perceive that Interne t ban ing and Phone ban ing services are as reliable and accurate as that provid ed by the ATMs or the human tellers. Are the technological innovations such as phone ban ing, ATMs and the Internet b an ing preferred?

How about the Availability of a wide range of innovative and high tech services? This survey availability of a wide range of innovative and high tech services was ran ed low in terms of importance. Which mode of service is least satisfied? In UK the ban customers are less satisfied with the phone ban ing services and few times it goes for the Internet service also. However in comparison to UK the Internet ban ing is low in India. What is the Most Satisfied or the Satisfactory Mode of service? Are the retail ban customers of the ban are more satisfied with the personaliz ed services which are provided by the ban tellers or are they more satisfied wi th the services that are provided by the machines li e ATMs, Internet ban ing an d Phone ban ing? Generally among the services that are provided by the retail ban s are the autom atic teller machine, human tellers/ operators, phone ban ing without operator assi stance , phone ban ing with the operator assistance and internet ban ing in India a nd UK show the same results that customers are more satisfied with the services that are provided by the ATMs. The in-depth interviews which followed the general structure of the questionnair e. This method was done in order to have a similar coverage in terms of the ques tions that were raised and they were able to address the research issue effectiv

As the technology was han eighty percent of preferred interacting an ninety percent are an ing services.

ran ed little low in importance in the findings but more t the survey customers in both the countries said that they with technical services over the human tellers and more th loo ing forward for innovations in the technology in the b

Can it be possible to rate the how frequently the ban

services are used?

ely with the given conceptual frame wor that was developed from the literature review. The difference between the in-depth interview and the questionnaires is that the customers were able to respond and provide more information in terms of their responses and that in turn helped to understand what the customers were e xcepting from the retail ban and its services. The in-depth interviews are also divided into three main parts. The first part would merely introduce the main requirement and it will show the age and education level of the customers and their requirements with services th at are provided by the retail ban s. The second part of the interview is related with the questions regarding the sat isfaction and loyalty of the customers and also nowing their response on the se rvices li e the ATM, Internet ban ing and Phone ban ing. The starting point is s imilar to the questions in the questionnaire but in the later part of the in-dep th interview a more detailed information is obtained from the customers on a per sonal level what ind of service would they prefer and why do they prefer it and would they li e any changes in the services that are provided by the retail ban s. The final part of the in-depth interview that involves factors that we have disc ussed in the framewor . Here in the discussion it was mainly discussing the each service which also defi ned the expectations versus their perceptions that each individual customer had about the services which were provided by the retails ban s. But as in the quest ionnaires we did not get the rating in the in-depth interview. The main concentr ation is mainly on the qualitative discussions, and also to understand the gaps that existed and in what way could the ban improve its services. The output of the in-depth interviews are compared with the questionnaire responses and then a nalyzed. In a survey which was conducted by Ernst and Young (2006) results show that a in India maximum retail customers are satisfied with the ban s which follow the c ountry stream and the confidence improved tremendously in year 2008 as their wa s a global financial crisis in the world. Only India was less affected with this as they had preferred ban ing policies which are followed by the Reserve Ban o f India. "Indians have the highest level of trust and satisfaction in their ban ing indus try the credit crisis had minimal impact on the customer confidence in the Indian ban ing industry. As this survey had surveyed almost twenty thousand and five hu ndred global retail ban ing customers in which there are 1000 from India. The ma in reason for this chec loyalty levels of the customers towards their ban and its services. "In order to drive customer value and reduce attrition, much-improved leverage o f customer data and insight will be critical, as tailored offers and service pro positions are li ely to be positively received by the customers, "said E&Y Natio nal Director Viren H Mehta. HDFC ban is one of India s premier ban s and in the year 2009 it has won the "b est retail ban in India" and this was third time it won the award. This shows t he loyalty of the customers towards this ban , and hence HDFC has managed to ope rate better than its competitors in the retail ban ing. Survey results What will be the main reason in selecting the type of ban ing services?

The majority from the 200 responses of the survey conducted maximum people are s electing or preferring the modes of services based on the services offered to th e customers from their respective ban s. The 5 percent of the reasons are based on the customers physical behavior to select the ban . Every model will have its own limitations in their ban that are only 14 responses that were cited it and they have no reasons to tell, and these two factors are considered as the most i mportant factors to select a retail ban and to open accounts in those ban s. So to attract the customers the ban s should concentrate on their strategy and mai nly on the satisfaction factor of the customers. To reach the customer satisfaction the ban s should improve the technology and c an erase this barrier and can plan how to face this? From the present survey we can notice that the technological innovation such as Internet ban ing has not gi ven a good ran by the customers and can be seen in the present table. To unders tand the broader picture in selecting a retail ban , this process can be found f rom the data of the report, the survey present report conducted on the selected customers to now the research uses.

________________________________________ Total Internet Total Internet Users Ban ing Users (%) (%) ________________________________________ Australia Singapore Hong Kong 48 38 50 21 7 Country

40

The above observations were deduced from the recent surveys. a. the literacy level and the nowledge level are very low so that the new tech nologies are difficult to explain. b. the state of technology that is present in many countries and has an affect o n utilizing the online services. c. The cultural differences that can be seen in the two countries were ta en as the major reason to ta e up the Internet ban ing between the two countries. Through information technology the retail ban customers can access the account status, performances of their businesses, and the newly introduced the products and services. For example the retail ban ing industry in which the automated inf ormation processing would enable the customers to connect with the ban at any t ime or at any point in the retail ban s networ coverage. Thus information techn ology would create and strengthen the customer loyalty with the retail ban . It is critical for the ban s to attain the desired goals with the well-managed C RM solutions. Cross industry competition has dilate the different products that ban s are offering. Ban s major goal is to maintain a highly cordial terms with the consumers if they wish to list themselves among big mar et leaders. There ar e lots of rivals in the mar et who are also adopting different techniques to dev elop consumer relationships. Among the all financial service provider ban s shou ld ma e themselves different by adopting different methods li e raising the valu e, various products line and best accessibility which was not present before. Nowadays consumers are loo ing for the ban s which are not complicated in other

words their process should be easy. They must be providing the useful data and w or s through the all aspects. CRM solution is quite effective in storing the con sumer data. With this all the customers are provided with required information. CRM solution pic s the true data from the customers then it saves the data in th e central repository. Finally that particular data is used to develop the clear understanding of the customers and their present and upcoming demands. With the relevant information, ban s would be able to do the mar et campaigns ef fectively. This gives the strategic advantages from the profitable consumers and ignores the unprofitable ones. The all-successful ban s should be recognizing t he upcoming business opportunities by updating the current product and servicing the future mar et requirements. To cope up with these issues and to achieve the goals ban s needs the web technology that collects the data centrally to ma e s ales across and upcoming opportunities of selling and assist the leader to ma e the right strategy. The consumer relationship is one of the new methods which include consumer loya lty towards organization. Differences between the product and prices are of low importance. With this reasons ban s are now unable to draw the customer attentio n towards products and services. There should be different variety of the produc ts which can stand against the other products in the mar et. That product should meet the consumer demand. The main goal of the ban s to increase and maintains the consumer base. Because when there is big customer strength there will be high profits. Customer means business. Consumer is the soul of the any business so ban s need to maintain the quality so that consumer strength goes up. 3.5 Limitations of research: As we all now the word technology is endless concept but now in the current con text we can see that due to the limited accessibility and the time factor we hav e to limit this dissertation to some extent the ey limitations are as follows : The first limitation is the time factor as we now that a research process is co ntinued for a longer period of time as this ban ing is a never ending process as the dissertation needs to be completed within the course period time. There are many advantages with this research if it is continued for a longer period of ti me but this research was done in the best situations in the best possible given the time constraint. The respondents to the survey were in a small sample due to the given time and t he funding criteria the questionnaires samples were limited and were utilized in an approach of non-probability with the help of useful sampling. So this may be ta en as one of the limitation and accordingly we have enough respondents for t he surveys and the questionnaires to generate a meaningful insight to show the s atisfaction in the retail ban ing customers and also on the impact of informatio n technologies in their ban ing services. The dissertation was mainly dependent on relied contacts and networ s in particu lar situations to improve the sample people for the in-depth interviews and ques tionnaires to understand in a better way about the impact of information technol ogy on the customers of retail ban . The above limitations that are mentioned ra ise an issue of reliability, validity, ability to generalize the findings for th is research and bias. 3.6 Reliability: The results of this research are considered as robust as they are given particul arly using the triangulation methods. The survey results were triangulated with findings from the existing secondary research also from the in depth interviews.

3.7 Validity: To meet the requirements of the sample size we had enough respondents. Then main issue is with the approach of non-probability of the convenience sampling. But however with a good representation of the responses were very objective for this research. 3.8 Ability to generalize: With the triangulation method in the research we may approach the respondents an d ma e them feel that there is a solid stable state to face and also to ensure w ith an exited theme which will be related to the affects of information technolo gy on the customers of retail ban s. 3.9 Inherent bias: We could see a natural intension to respond from the sample of people ta en. The research design is developed in the best way as it has a complementary approach to ma e this by utilizing both the research paradigms. The triangulation formed by the many sources of research will limit the interests of the sampled people of customers. From the above points discussed the survey results are triangulate d by ta ing the results from secondary research analysis and in-depth interviews which already exists. According to the survey results we would be able to compare and come to a conclu sion to our analysis. But there is an issue always occurs mainly due to the unce rtainty in the coverage extensiveness as there are many reasons li e the cultura l differences, the geographical barriers and also the response rates. The other survey limitations are stated in the Berenson and Levine (2002, p.18) we have ta rgeted 300 responses but we could manage to get only 250 and where not able to f ocus on the customers high net worth importance, about the information about the competitors were not included. 3.10 Research ethics: This research has ta en help from many sources li e the Internet, people and fro m the ban ing industry. Here in this research we are trying to show the customer s loyalty to the retail ban ing as they are introducing new technologies to the ir customers and are they still able to sustain their customer s loyalty. With t he retail ban s reputation in the ban ing industry it has to thin of new strate gies to satisfy their customers and also eep their loyalty. Understanding what are the important pointers about the customers that would eep them satisfied. M eeting the customer s expectation should be the first thing to eep in mind of t o the eep the loyalty of the customer.

"Everyone nows that customers are more nowledgeable and more s eptical than ev er before and that in today s environment they do a lot more homewor before com mitting to a ban s service. Many consumers will chec products and prices onlin e before ma ing a decision about what to purchase. HSBC probably has a business objective to drive more transactions to its website which is understandable, but if you want to maintain trust, you want to maintain trust, you should aim for m aximum transparency." In the retail ban ing industry they have seen a speedy growth due to the Web tha t is creating great opportunities for the new businesses in the retail ban s. An d it also shows different methods of using the business mar et for the new ban e rs. "Experts estimates that consumer use of on-line ban ing services will increa se over 20 fold by the end of the century. Geography and the number of branches become irrelevant and community ban s are able to offer the same level of servic

e and convenience to customers as the largest ban s. In the past over 60% of exi sting ban customers have cited ban selection to be based on convenience of loc ation. For the customers of today, convenience of location includes the availabi lity of 24-hour access via the Internet. "(Wilson, 1996) Chapter - 4 4.1 Results and Analysis: The secondary data finding involve both the surveys on the in-depth interviews a nd questionnaires. This is elaborated separately further in a detailed way as sh own below as 4.1.1: Case 1 The following are the details of case1 Name: swetha reddy Age: 34 Gender: Female Occupation: Manager Traditional ban ing Swetha has been ban ing with ICICI for 4 years. She said initially she had to tr avel to the ban on frequent bases to withdraw money. In the queue for long hour s for withdrawal and that used to ta e away lot of time including the travel tim e. For smallest of information also she had to travel to the ban and get the in formation personally. Though the service was good in the ban as the ban teller s were friendly and very courteous but still she was not satisfied with that. After the introduction new services the retail ban s introduced ATMs and that sa ved swetha s time it became very easy to withdraw money chec the account detail s and also deposit money. Yes, there was wait time but compared to the normal tr aditional ban ing it was much easier to do this. And the ban slowly introduced the Internet and phone ban ing which actually made their life easier. In the ini tial stages she was s eptical about giving out her information and she was not s ure if it was secure or not. The ban assured her of the security and whenever t hey login it would be into a secure site where information cannot be hac ed. As they produce individual truncation pin numbers and passwords. And the site is fu nctional 24 hrs a day and seven days a wee and she can withdraw or transact eve n after the ban ing wor ing. For a wor ing woman li e her these technological in novations has proven to be successful as she can access the ban at any time and from anywhere which is a greatest service the ban could give to her. 4.2.2: Case 2 Name: Mr. John Thomason Gender: Male Occupation: Businessman In the initial days when john opened an account with Barclays ban , he li ed the services which were provided by the ban . Wherein he is always treated right wh en visits the ban for his transactions. But when the ban s introduced the new s ervices li e the ATMs or phone or Internet ban ing it was not the same for him. He felt the personal touch was missing as in the traditional ban ing scenario. T here were benefits in the new the services which were provided by the ban but s till he preferred the services in which the human touch was always there. 4.3.3: Case 3 Name: Rajashe ar Age: 42 Gender: Male Occupation: Customer service executive ICICI Retail ban ing ICICI ban was the first ban in India in 1997 which has offered for the first t

4.4.4 Case 4 Name: Ali bhasha Age: 29 Gender: Male Occupation: Owner of supermar et Customer ICICI ban As per this customer, he is very much interested about fast services and it shou ld be secure. In his interview he mentioned that, he was very comfort with the i nternet transfers and security of the ICICI ban ing industry. But he mentioned t hat, now days there are so much of scams and scammers are trying to hi e the ban ing software. The ban has to improve the services to avoid this ind of situat ions and also need be with new software updates in the mar et. As per this interview, the ban ing customers are more worried about the security and safe internet ban ing. This is one reason ware the ban s are introduced the Mondex systems in the ban ing industry. As per this interview with the customer s he is not worried about he charges but he loo s only safe ban ing. 3.4.5 Case 5 Name: Issac Age: 44 Gender: Male Occupation: Manager in BPO Customer of share trading in ICICI ban

(ICICI DIRECT)

This person is having full nowledge about the ban ing and able to do maximum in ternet ban ing and telephone ban ing. As per his intention, the ban is followin g all safe methods but the hac ers are very cleaver to hac the ban ing systems. So, sometimes he feel not to go with internet ban ing, but it is essential for him. When we as ed the about the downsize ban ing and reducing branch networ s. He st ates that it will be good indication but not always. Whenever he want to rectify the problems about personal ban ing issues or usages then, he will prefer only direct contact not by phone nor mails. As per this interview, we can assume that branch downsizing is not much preferab

ime the internet ban ing to its customers with the help of its "Finacle s e ban ing solution and established itself as a leader in the internet and e-commerce s pace". In the future it expanded its services in the e-commerce li e the funds t ransfer, bill payments and for the corporate ban ing which is on the Internet. F or ICICI ban the Internet has become a critical element which helped the ban w in the award for "multi-channel strategy" which turned out to be the main source for its growth. During the years 2000 to 2004 was able to convert almost 70% of its routine ban ing transactions to different sources of ban ing which they pro vided. In today s date only 25% of transactions ta e place in the ban s and the remaining percent of transactions are done through the net, as this has helped t he ban to use its wor on the customer acquisitions more. The ICICI ban on an average has for a month almost three hundred thousand customers which is the hig hest in the world. Nowadays in the CRM environment we loo the ris of different suppliers who are building the rational database technology. And this promotes the consumer relati onship as a tool of the organization. The reason is mostly all latest ban ing ap plications are developed with the database gives the average consumer informatio n. The main problem arises when various CRM data marts are implemented and runs with different applications. Next you will find that cannot be pacifying the eac h information in the database. This is always advisable to implement only one CR M system and next to ma e the database with the different applications.

le. Customers will feel happy and secure when the branch people contacted him di rectly to rectify the problems. The notion of consumer orientation seems genuine. There are various pitfalls whi ch don t allow some necessary changes. The ban s can minimize the ris by ignori ng them. These are as: Pragmatic business explanation Information of low quality Big time for planning Commitment to the consumer Ignoring the human side of equation Disagreement on power No rules are clearly defined Less motivation Less Authority Too many expectations from consumer. Failure to reengineer business process

Chapter 5 5.1 Conclusions: Information technology s innovation may increase or reduce still the customer sa tisfaction would depend upon the need and expectations of the customers, as we c an find all this information in our research. The requirements and expectations will change in the entire country due to the various categories li e education, age group and many other levels. We can see here due to the implementation of in formation technology new services were invented and advancement of the existing ones. These new services li e Internet ban ing, electronic payments, and investm ent securities have increased the income of the ban and a more convenient servi ce for the customers.

How the ban ing industry is made available to its customers by giving a 24/7 service to their customers? They have introduced secured modes fo r transferring their money. Technology indeed had a very positive impact on the retail ban ing industry. As ban ing industry has become more efficient and the p rofits and customer satisfaction increased. As information technology is a vital part for any business process and the innovations in this process has helped th e ban ing industry for a very long period of time and the customer were satisfie d with each new innovation for their own comfort the retail ban ing industry was doing this. It all started by exchanging of coins and now the retail ban ing in dustry is a sophisticated business where all the customers are treated with a sp ecial treatment as they are being introduced to new and better services every ti me. Retail ban ing industry is one industry, which is implements lots of service , related technology, which traditionally was provided by the persons of the ban , but with the changing technology they have come up with services, which would ma e the life of the customer easier while they are ban ing. The customers woul d receive the same amount comfort while they are ban ing personally online or th rough Internet the service will never be different. They would have the privileg es of the customer always and would be treated the same no matter what technolog y they use. It is clearly explained that the complete ban ing business is moving with many c hanges. The changes are nothing but developing new technologies to ma e ban pro cess easy. Many ban s are choosing new methods of ban ing from cross subsidy acc ounts. It is directly saying that they are readily neglecting the accounts ma in g less profit. Offering attractive interest rates and ban ing charges encourage these accounts. By doing these ways the accounts are maintain higher balance acc ounts, which ma e profits to the ban s. The ban ers are also approaching new met hods li e telephone ban ing; ATMs and Interactive voice response so that it has c hances to gain money with these increases in facilities. Anyhow to provide any ind of service to the customer all category people are considered and not single person is ta en into consideration. The ban s will always try to gain more prof its from all accounts. If there are any low cost ma ing customers then they are considered as an economic channel for distribution and also treated as availabl e customers . But the customers should be aware that they are maintaining adequa te amount or not else the ban s will remove the accounts from the ban ing proces s completely. The Midland ban says, "The fact is that ban s are becoming more selective. Peop le tend to thin they have a divine right to an account, but it is a two-way pro cess." (Wright D., 2003 p.3/12). There is also one more point to be observed tha t the ban s prefer to only high accessing customers. The ban s are also selectin g the customers who are profit ma ing and credit worthy before they are given an account. Since ban s are providing high accessible facilities to customers thr ough many available mediums li e Internet. But the ban s are giving an opportuni ty to hac ers to do frauds things on the available data on Internet. So this typ e of service needs maximum care to wor on. If this ind of facility is ta en ex tra care with more secured way then it may lead to less use of the available opt ions during process for the customers who are in exact need. An adequate data is to be ept on the Internet and suitable methods are ta en if not the customers may lose confidence hence the utilizing of these offers will reduce. Many of the ATMs are replaced with the branch networ since there is an increase in usage after the telephone ban ing services are offered. Anyhow technology wil l be considered as an advantage inn the competitive ban ing mar et. But in most cases it is observed that the technological advantages will exists only for shor t period only. The new technologies li e ATMs and Mondex are adopted only for lim ited period as technologically advanced one. If these are employed for long peri od then it may effect the ban structure and its position. One example, which ex plains this situation, is that the ATMs are not able to become a strategic tool t o provide the required branch networ information since the customers will alway

s expect in high range. So ATMs are decreasing the barriers for the new entries into the mar et. To do the ban ing process there is no need to consider these br anch networ s. Now-a-days many of the super mar ets are providing credit cards t o its customers to attract them with low interest rates. This will affect the ba n ing sector. Many ban s li e Ban of Scotland are attracting its customers by o ffering very low rates and also to compete its competitors in the retail-ban ing environment. In order to withhold in the mar et the new entries will offer low rates to its customers, easy ban ing process, and penetration pricing all are fo r temporarily, hence the competition is increasing. The industries may sha eout and it may lead to losses due to price war in the mar et. This will also shows e ffect in the future pricing in the financial and ban ing sectors. If the ban is restructuring then the savings made through the ban s may show er rors hence it is advised that it is a ris y factor to invest high potential amou nt. This situation cannot ta en very easily as this is not a single accident to happen Barings directors had been aware for several wee s of the existence of a f ile in Lessons computer records called Error Account 88888. (Kane F., et al., 2005 5, pp.2/3). Anyhow this may not lead the ban to fall down. If the directors are operating in a perfect way without any mista es and neglecting any ind of bad situations occurred the ban may see supernormal profits within no time. But one point to be ta en seriously that this ind of situations is repeating continuou sly. CRM is basically the solution system, which helps to increase the profits from m edium to long. With its great capability of storing consumer nowledge, proper t reatment of consumer and perceptions it maintain its standard to meet the custom er requirements. There are some important points which improve in maintain the good relationship with consumer and that are: Positive staff attitude Honesty, integrity and reliability Proactive advice Consistent delivery of superiors fast and efficient complaints Quality service Delivery of promise 11simplicity and ease of doing business Resolution policy All the private sector ban s are trying to allure the main parts of society by i ts way of CRM solutions. Some nationalized ban s are also following it. Many ban personnel accepted that CRM systems assisted them in maintain consumer retenti on. With this the ban s are able to ma e high profits. As it is helpful in attai ning the goals they li e to Continue with this processed and update them accordingly. Some employees thin t hat it is only wastage of time as they are not aware of it. The statics shows th at more than 83% of the users were happy after the implementation of these solut ions. And around 17% were the unhappy one due to some cost considerations. Security is a major factor as in the current era where the security has become a major issue in ban ing because of the ongoing things that are leading to the lo ss of the ban s, loo ing at the percentage of ban frauds though information tec hnology has bring in impact on the ban ing industry has also given a buzz on the security index as well. Ban s have come up with strong security systems which h as impacted in a very huge manner li e the people have started building trust on the ban and security systems have bought in revolution to the ban ing industry different ban s have employed different security systems when the people are do ing internet ban ing and telephone ban ing li e by employing some security quest ions or authorization codes which have reduced the fraudulent activities in a ve ry large scale.

5.2

Recommendations:

The recent economic downtown reduced the UK and Indian retail ban s productivity. The money has transferred from the present ban s into the new ban s because of other ban s technology innovations. An example would be the ICICI ban in India as it continually develops the cutting edge in the information technology in mob ile and Internet ban ing. Compare to other ban s li e SBI and other Government s ubsidiary ban not reached up to the level of ICICI ban , because without the go vernments help it would not reached to this level due to these ban s under gover nment control. 5.2.1 Cultural Diversity:

Choice shows for example the aged group people would use ATMs, which will little easy to access. There are options of different language changing and selection in the electronic services, which will be seen in ATMs. Information search which deals with gathering information li e facts as the customers satisfaction and co nvenience is ran ed higher and given more importance. 5.2.2 Training or Public education: The biggest problem for the ban s is to give some training to the customers abo ut the information technology and its innovations, this nowledge will be much u seful to the customers. To achieve this, government should help because since it will provide funds to employees to ma e the people learn and upgrade new uses i n the ban s. From the need-based model the customers should improve their nowle dge to use ne technologies in ban ing and also to improve their s ills. Courses about the computer should ma e to learn by the people. The problems arises is wi th the older aged people since they are less educated and this problem may seen less in youth. Currently CRM focus is on how to save money and time and increase profitability. It is possible by redefining of all the process and techniques. This will cost less as compared to other methods and moreover assists in the growth of currentl y existing client. It is saying that "it is seven times more expensive to acquir e a new customer than to eep an existing one", Hence the importance of consumer data and management should not be ignored. It is of great importance for any or ganization to achieve the desired goals. CRM is a bundle of methods, procedures, techniques, organizational culture and technological solutions. It increased th e company s capability to chec the differences as per the consumer behavior and demands. It sees the upcoming opportunities to serve the customer and act accor dingly. All the ban s must focus on the consumer relationship building techniques li e r eply to the queries as soon as possible, searching the attrition of the consumer for specific service and give the rates to the product to all the networ s and branches. Suggestion box is important to now the thoughts of the employees. It gives the picture what actually are the advices and suggestion for any improveme nts. It is important for healthy environment. Another way of strengthens the relationship with the electronic feedbac . Consum er will provide the feedbac electronically to now their behavior and thoughts

According to Adler (2002, P.16) culture is " that complex whole which includes nowledge, belief, art, law, morals, customs and any capabilities and habits acqu ired by a person or as a member of the society" culture is expressed differently in different countries through their values with which they lead their life and in their world. In the survey we can see that in the initially stages in India the Internet ban ing was not ta en up properly because of the cultural innovatio ns. The cultural diversities are processed with the many levels when the technol ogical innovations of the information technology to improve the customer satisfa ction of the retail ban s (Adler, 2002)

about the current products. This will helps in improving the products and servic es. Ban s would be able to get the benefits as low price ma ers. CRM solutions e nable the ban to decide the low price and high benefits strategies. It assists in maintain the consumer faith and their capability to analyze the product which they are using from long. With the help of sales executives and their performan ces and service staff retail ban ing are able to develop the successful consumer relationships. Correct CRM solution increases the customer satisfaction level and it leads to g rowth of the company. It assists in building self-motivations in the consumers, which give boost to generate revenues. There are various issues, which attract t he attention of the ban s li e its efficiency, its applicability and targets. Ma ny ban s got benefitted from CRM solutions. Indian retails ban s must concentrat e on this and put more attention on the customer relationship activities. The In dian ban s are not yet developed in CRM solutions. They needs to implement CRM a s per the requirement and trained their employee wherever it is necessary. Then only this institution would be able to meet the demands of "universal ban ing" T he main goal of the CRM is to ma e the use of technology and human resources. To set the vision on the perspective of consumer various ban s should understand t he significance of CRM. And CRM understands the significance of consumer only 5.2.3 Steps that ban er can follow to build up long-term relationship with their customers who related to the CRM: Welcome call Sheets of profile Ban customer interaction detail file Diary of appointments Dates trac er alarm

2. Participation of every personnel in the process, which CRM solution should not ignore. Whether the personnel belong to HR department of Finance all should participate. It is not for single individual rather it comes when all wor s in a team. 3. Ban s personnel should communicate with consumer so that they should get q uic and prompt reply. 4. It should be understandable by every personnel that CRM system is for assi sting them to ma e interaction with consumer. It realizes beforehand the consume r needs and provide with services as per their needs. 5. Whether ban s are meeting its goals or not CRM systems should be ta en as a practice of regular development.

It contains the collecting the information from the various institutions and the n ma es them in one whole. This from the technological point of view, all the in formation pertaining to the consumer should be made in one externally and intern ally. This studies the consequences of the detailed research. It analyze that wh ether the various segmentations of the consumer has reached to the ey points li e sales force, web surveys, mails etc. While interacting with the and while ma ing all the transactions all the points should touched. The online system of doi ng business has changed the complete scenario. It enables the consumer and organ ization within the reach of each other. All the details can be seen from custome r care centers through online and then through mobile devices. 5.2.4 To study the customer following suggestions emerged from the study: 1. Educating and providing the proper training related to CRM solutions is be ing followed by the private sector ban s and with this they are running. This is what all nationalized ban should focus on.

6. Listening to the consumer problems is the half wor done. So every employe e duty is to listen properly to all issues of the consumer and act quic ly. 7. For the continuous growth of the technologies all the ban s should opt for new technology. These will assist them in maintain the one to one interaction w ith the consumer on Internet. 8. With the day-to-day changes in the consumer needs and requirements new ser vices should be launched. 9. What will be the cost for implementing the CRM strategies? It should be me asured By the ban s at the time of profit evaluation. This should be based for the long run not for earning for the short term. 10. Focus should be on the training of all the employees. It is not just to tr ained wor ed but to all level personnel. 5.3 SCOPE FOR FUTURE RESEARCH: The process of ban ing is a never ending one as this industry is one which is co ntinuously evolving always so as in the current era there are so many frauds tha t are ongoing li e money laundering so we should continue the research process i n way that would improve the online ban ing security as of now there are so many developments that are ongoing li e developing a system that would reduce the ha c ing of accounts and money laundering products and personal identity.

Chapter - 6 Bibliography Al-Hawari, M. and Ward, T. (2006), The effect of automated service quality on Au stralian ban s financial performance and the mediating role of customer satisfact ion, Mar eting Intelligence & Planning, Vol. 24 No. 2, pp. 127-47. Bateson, J and Hoffman, K. (1997), Essentials of service mar eting, The Dryden P ress, Fort Worth, TX. Vol. 28 No. 4, pp. 120-37. Bateson, J. (1985), Perceived control and the service encounter, in Czepiel, J.A ., The Service Encounter: Managing Employee/Customer Interaction in Service Busi nesses, Lexington Boo s, Lexington, MA. Bauer et al., (2005), Measuring the quality of eban ing portals, International J ournal of Ban Mar eting, Vol. 23 No. 2, pp. 153-75. Berry, L. (1995), On Great Service: A Framewor for Action, the Free Press, New Yor , NY.

Bitner, J.M. (2002), Service and technology: opportunities and paradoxes, Managi ng Service Quality, Vol. 11 No.6, pp.375-9. Boyer et al., (2002), E-services: operations strategy a case study and a method for analyzing operational benefits, Journal of Operations Management,Vol. 20 No. 2, pp. 175-88. Cronin, J. (2003), Loo ing bac to see forward in services mar eting: some ideas to consider, Managing Service Quality, Vol. 13 No. 5, pp. 332-7. Dabhol ar, P. (1994), Technology based service delivery, Advances in Services Ma nagement, Vol. 3 pp.241-71. Dabhol ar, P. and Bagozzi, R. (2002), An attitudinal model of technology-based s elf-service: moderating effects of consumers traits and situational factors, Jour nal of Academy of Mar eting Science, Vol. 30 No. 3, pp. 184-201. Dabhol ar, P.A. (2003), Technology in service delivery: implications for self-se rvice and service support, Handboo of Service Mar eting and Management, Sage, Beverly Hills, CA. Dabhol ar, et al. (2003), Understanding consumer motivation a nd behaviour related to self-scanning in retailing: implications for strategy an d research on technology-based self-service, International Journal of Service In dustry Management, Vol. 14 No. 1, pp. 59-95. Gronroos et al., (2001), The Net Offer model: a case example from the virtual ma r etplace, Management Decision, Vol. 38 No. 4, pp. 243-52. Iqbal et al. (2003), Understanding consumer choices and preferences in transacti on-based e-services, Journal of Service Research., Vol. 6 No. 1, pp. 51-65. Joseph et al. (2003), Service quality in the ban ing sector: the impact of techn ology on service delivery, International Journal of Ban Mar eting, Vol. 17 No. 4, pp. 182-91. Kim et al. (2006), Online service attributes available on apparel retail web sit es: an E-S-QUAL approach, Managing Service Quality, Vol. 16 No. 1, pp. 51-77. Lewis, B and Mitchell, V. (1994), Service quality: students assessment of ban s a nd societies, International Journal of Ban Mar eting, Vol. 12 No.4, pp.3-12. Mols, N. (2000), The internet and service mar eting the case of Danish retail ba n ing, Internet Research: Electronic Networ ing Applications and Policy, Vol. 10 No. 1, pp. 7-18. Murungi,I. (2003), Development of Cooperative Law in Kenya. Oa land, J. (2000), Total Quality Management, Butterworth-Heinemann, Oxford. Parasuraman A.et al. (2002), A conceptual model of service quality and its impli cations for future research, Journal of Mar eting,Vol. 49 pp.41-50. Parasuraman, A.et al. (1988), SERVQUAL: a multiple-item scale for measuring cons umer perceptions of service quality, Journal of Retailing, Vol. 64 pp.12-40. Pereira M. (1995).Ban strategy: competitive strategies vol 6 pp 75-6. Roth A. and Menor I. (2003). Insights into service operations management: a rese arch agenda, production and operations management, vol.12 pp 145-64. Rust et al. (2001).E-service and customer, International Journal of Electronic C

ommerce, vol.5 pp 83-99. Saunders W. (1994).Universal ban ing in the United States Wiley, Newyor . Sethi V. and King W (1994). Development of measures to assess the extent to whic h an information technology application provides competitive advantage.Managemen t science,40(12),pp 1601- 1627. Schultze, U. (2003), Complementing self-serve technology with service relationshi ps: the customer perspective, E-service Journal, Vol. 3 No. 1, pp. 7- 31. Smith, C.P. (2007), Retail Ban ing Technology, International Business Communicat ions, London. Vandermerwe, S. (1993), From Tin Soldiers to Russian Dolls, Butterworth-Heineman n, Oxford. Yang, et al., (2001), Consumer perceptions of service quality in Internet-based electronic commerce, Proceedings of the EMAC Conference, 8-11 May 2001, Bergen. Yang, Z. and Fang, X. (2004), Online service quality dimensions and their relati onships with satisfaction: a content analysis of customer reviews of securities bro erage services, International Journal of Service Industry Management, Vol. 1 5 No. 3, pp. 302-26. Yen, H.R. (2005), An attribute-based model of quality satisfaction for Internet self service technology, The Service Industries Journal, Vol. 25 No. 5, pp. 64159. Zeithaml, V. (2003), Service-excellence in electronic channels, Managing Service Quality, Vol. 12 No. 3, pp. 135-8. Zeithaml, V. (2002), Service quality, profitability and the economic worth of cu stomers: what we now and what we need to learn, Journal of the Academy of Mar e ting Science, Vol. 28 No. 1, pp. 67-85. Zeithaml, et al.(2003), A conceptual framewor for understanding e-service quali ty: implications for future research and managerial practice, MSI Wor ing Paper Series No 00-115, Cambridge, MA, pp. 1-49. Zhang, X. and Prybuto , V.R. (2005), A consumer perspective of e-service quality, IEEE Transactions on Engineering Management, Vol. 52 No. 4, pp. 461- 77. Bifu, (2004), Mondex: The electronic replacement for cash, (Bifu: jon/rmb/mondex/ Sept.94) Berger, A. N. (2003), The economic effects of technological progress: evidence f rom the ban ing industry, Journal of Money, Credit, Ban ing, 35 (2), 141-176. Brynjolfsson, E., and Hitt, L.M. (2000), Beyond computation: information technol ogy, organizational transformation and business performance, Journal of Economic Persp ectives, 14(4), 23-48. Ban s lend by creating credit. they create the means of payment out of nothing. - Ralph M. Hawtrey 1879-1975, former Secretary of the British Treasury Bifu, (2006), Ban ing, Insurance and Finance Unions Response to the H. M. Treasur y Consultation Document on the Electronic Presentation of Cheques

Channon D. F., (2003), Ban strategic management and mar eting, p. 48-79 Don in R., (2005a) Recruitment: Reviving the spirit of Siegmund Earburg People ma nagement could be at the centre of a City crisis, Financial Times Dunne, T., Foster, L., Haltiwanger, J. and Tros e, K. (2000), Wage and productiv ity dispersion in U.S. manufacturing: the role of computer investment, NBER Wor ing Paper 7465. Don in R., (2005b) Recruitment: Human resources and an agenda for competition Companies must nurture their employees to create an innovative wor force, Financi al Times, Ernst & Young, (20066), Managing the virtual ban , (Business Monitor - Ernst & Y oung, New Yor , http://businessmoni . . .proc/180/virt.html, 22/05/11) Geoffrey Crowther, (2006): Every ban has a very great deal of the money-lender i n its composition. It collects money from those who have to spare or who are sa ving it out of their income, and it lends this money out to those who require it . (An Outline Of Money, 2nd ed, Pg 23) Garrett B, (2007), Planning for a secure future, Chartered Ban er, (Canterbury: T he Chartered institute of ban ers, Feb., Vol. 3, No. 2) Hotelling, H. (2009), Stability in competition, Economic Journal, 39, 4157. Jacques M., (12 June 2004), Caste down; Culture Essay, Sunday Times, (London: Time s Newspapers Ltd.) Johnson G., Scholes K., (1998) and 3rd. Ed, Exploring corporate strategy: Text a nd cases,

Koza , S. (2005), The role of information technology in the profit and cost effi ciency improvements of the ban ing sector, Journal of Academy of Business and Ec onomics, February 1, 2005. King R., (2005), Value Conflicts and Social Choice in Electronic Payment Systems, Ed. Finnegan R., et al., and Information Technology: Social issues a reader, (Lo ndon: Hodder & Stoughton Educational in association with the Open University pre ss, 1997)

Mondex (2004), Mondex: The worldwide alternative to cash, (London: National West minster Ban Plc.) Mondex, (2007), in real life, (http://www.mondex.com/swinreal.htm, 1/06/11) Milne, A. (2006), What is in it for us? Networ effects and ban payment innovat ion,

Kane F., et al., (2005) The final chapter; Barrings ban ess Focus, Sunday Times, (London: Times Newspapers Ltd.,)

collapse; Insight; Busin

Jones T., (2006), Submission to the House of Representatives: Mondex on ture Of money , June 11th 1996 (http:/ / www.mondex.com/hserep.htm, 11/5/11)

the fu

Journal of Ban ing & Finance, 30 (6): 1613-1630. Oliner, S. and Sichel, D. (2000). The Resurgence of growth in the late 1990s: Is information technology the story?, Journal of Economic Perspectives 14, 3-22. Porter M., (1985), Competitive advantage: Creating and sustaining superior perfo rmance, (London: The free press) Rohlfs, J. (2004), A theory of interdependent demand for a communication service , Bell Journal of Economics, 5 (1), 16-37.

Shu, W. and Strassmann,P. A. (2005), Does information technology provide ban s w ith profit?, Information and Management, 42 (5), 781-787. Sloman J., (2004), Economics, 2nd Ed., (London: Harvister Wheatsheaf, 1991) Saloner, G. and Shepard, S. (2005), Adoption of technologies with networ effect s: an empirical examination of the adoption of automated teller machines, RAND J ournal of Economics, 26(3), 479-501. Tam, K. Y. (2008), The impact of information technology investments on firm perf ormance and evaluation; evidence from newly industrialized economies, Information System Research, 9 (1): 85-98. The Economist, (2005a), A job for special branches: ban ing technology. (Multime dia ios s), (European Business ASAP, Key words: ban ing technology, 20 May, 11) The Economist, (2005b), Finance and Economics: Surfs up for new-wave ban ers, The E conomist, (The Economist, Oct. 7-13th, Vol, 337, No. 7935) Wright D., (2003), Personal Finance Editor, "Ban s hide criteria for rejecting c ustomers; Personal Finance", Sunday Times (London: Times Newspapers Ltd) Questionnaire Name: Gender: Age: Occupation How you related to the ban ing industry? 1. Can it be possible to rate the how frequently the ban services are used / 2. Do customers perceive cost? 3. Why do customers prefer Human Teller/ Operator? 4. Why not phone ban ing and Internet ban ing? 5. Are the technological innovations such as phone ban ing, ATMs and the In ternet ban ing preferred? 6. How about the Availability of a wide range of innovative and high tech s ervices? 7. Which mode of service is least satisfied? 8. What is the Most Satisfied or the Satisfactory Mode of service? 9. Are the retail ban customers of the ban are more satisfied with the pe rsonalized services which are provided by the ban tellers or are they more sati sfied with the services that are provided by the machines li e ATMs, Internet ba

Smith S., Wield D., (2004), "New Technology and Ban Organizational Technology ",

wor : Ban ing on IT as an

n ing and Phone ban ing? 10. How you rate about the safety of internet ban ing ? 11. What is opinion about downsizing ban s and reducing the branch networ ? 12. Is it essential to come to the ban for rectify the problems and ban ing issues?