Supporting Research Report – ABC Bank Internet Banking

Supporting Research Report – ABC Bank Internet Banking

Executive Summary

Industry Background

The banking industry is one that primarily deals with the handling of money. Corporations in the industry manage cash, credit, and other types of financial transactions. The banking industry is one of the key drivers of economies. Banks use deposits from their customers to give different types of loans that end up making an impact on the economy (Beatty & Liao, 2014). The banking industry is sustained by a lot of factors, including customer satisfaction. Customers look for efficiency in the management of their finances and security in the finances that they keep with the banks. Internet banking is one of the ways that companies in the industry are providing the efficiency that customers need.

Technology Trends

Technology is an important part of the banking industry. In particular, internet banking is something that characterizes good services by a bank. A lot of customers judge the effectiveness of their banks by the efficiency and effectiveness of their online banking capabilities (Renuka & Dinesh, 2018). Therefore, most of the recent technology trends in the industry have focused on improving the banking industry. One of the common technology trends is chatbots. A lot of banks are utilizing artificial intelligence (AI) to improve customer experience. Customers no longer have to wait a long time to have their issues resolved (Montazemi & Qahri-Saremi, 2015). Chatbots are trained to give solutions to some of the common issues that face customers. Another technology trend in banking is cybersecurity. The banking industry is sensitive to security issues because of the nature of the data that they hold in their systems. Therefore, banks are constantly investing in better cybersecurity systems to keep their systems more secure. Cloud computing is also a common trend in the industry. Cloud computing allows the storage and handling of larger sets of data without having to upgrade the system infrastructure. Therefore, banks are able to scale up more easily to provide better services to their customers.

Project Approach

An agile project management approach will be used to develop the appropriate technology system for the ABC online banking system. Agile project management is an iterative approach that involves the delivery of a part of a project in different periods throughout the project’s life cycle. The project will specifically use the Scrum project management approach. Scrum is a type of project management process that is divided into different cycles named sprints. In each sprint, the project team develops project goals that have to be achieved within a specified time period.

Selected Vendors

The possible vendors for the network technology systems include Cisco, Alloys, and Oracle. These companies have the potential to provide ABC Bank with some good quality network systems. However, they each have their advantages and disadvantages. From the three options, Cisco is the best alternative. Cisco’s main advantage is its security. The company provides encryptions that can help protect the network from interceptions. Given that this is an online banking system, it will need a company that can provide the best possible security for the system. Cisco is also highly responsive, which makes them an appropriate network system.

Oracle is the best vendor for the database management system. This vendor had the highest score in the scoring criteria. The oracle servers have the advantage of having syntax enhancements and performance improvements. However, this system is very expensive.

The recommended vendor for the cloud computing systems is IBM. IBM scores high on the selection criteria. One of the main advantages of this vendor is that they are fast to respond to customer queries. IN a cloud system, the company should be able to reach the vendors easily to solve issues affecting the company’s data. The disadvantage of this vendor is that they are expensive. However, the other good option, Amazon, has systems that cannot be customized. Therefore, the company is better off paying more for systems that can be customized.

Alternative Approach

The competitive nature of the banking industry makes it necessary for the company to have an alternative approach to developing its systems that will give them a competitive advantage over competitors. In this case, the recommended alternative approach to developing the company’s systems is using a software application to manage the systems. A majority of people use smartphones and want to access their banks through a software application. A software system can be made to be relevant to the needs of the consumers, hence, enhancing their experiences.

Impact Analysis

The development of an efficient system will likely have a positive impact on ABC Bank. The success of banking companies depends on their ability to integrate good technologies into their services. ABC will be successful if it adapts to the trends in the banking sector by developing an online banking system that provides the quality of services that could match, or even be better, than the ones that are offered by competitors. Therefore, if done correctly, this project is expected to improve customer experiences and create a competitive advantage for the company.

Cost-Benefit Analysis

The benefits of this project far outweigh the costs. The cost considerations that need to be made include the following. Increasing efficiency will cost $4000, Reduction in price will cost $3000, Hiring more staff includes $10000, and purchasing more computer systems to handle the new technology will cost $5000. However, ABC Bank will gain millions or possibly billions from the improved service delivery that these investments will cause. The banking industry is driven by improved efficiency; hence, the companies will benefit from having improved online banking systems.

Financial Analysis

The financial impact of the project must be considered in the planning phase. The project is only viable if it has a reasonable return on investment. A good system will help the company to achieve a high market capitalization from the improved efficiency that will attract more customers to the bank (Wonglimpiyarat, 2017). This project is likely to be financially viable.

Risk Analysis

The main risk that the company faces is financial. There is a risk of investing in the development of online banking systems and not getting an adequate return on investment. This risk will be managed by ensuring that the right project management decisions are made. The technology system decisions made will consider the ones that are likely to bring about the highest benefit to the company to avoid losses.

References

Beatty, A., & Liao, S. (2014). Financial accounting in the banking industry: A review of the empirical literature. Journal of Accounting and Economics, 58(2-3), 339-383.

Montazemi, A. R., & Qahri-Saremi, H. (2015). Factors affecting adoption of online banking: A meta-analytic structural equation modelling study. Information & Management, 52(2), 210-226.

Renuka, S., & Dinesh, G. P. (2018). Impact of new trends on banking and insurance. Asian Journal of Management, 9(3), 1149-1151.

Wonglimpiyarat, J. (2017). FinTech banking industry: a systemic approach. Foresight.

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Conducting research and creating a supporting research report serves two important purposes with respect to your project (Internet Banking):

Supporting Research Report

It explains your technological choices in terms of business benefits and risks. This explanation is critical for executive approval.
It either reinforces or improves your plan—but only if you apply the results of your research to a new draft of your plan. In the industry, project managers develop their plans iteratively by changing them as they conduct more research and identify better or cheaper alternatives. This iterative approach is especially relevant to IT projects because new technologies are being developed and retired at a very quick pace.

For this assignment, you will compile research and create a supporting research report. Then, based on your research, you will identify and explain the rationale for three improvements to the project plan you submitted last week.

Compile additional research on your project’s industry, recommended technology vendors, and the categories presented in the supporting research report. You may want to include the Gartner Group and Forrester Research in your list of organizations to research.