Critical Analysis of the Technology Acceptance Model

Critical Analysis of the Technology Acceptance Model

 Executive Summery

As an essential requirement in the Management Information Systems (MBA-540) students need to assess Technology Acceptance Model with the intension of analyzing practical example in the real business environment. Therefore it was decided to analyze Navision ERP system introduced to Analytical Instruments (Pvt) Limited and its acceptance and rejection by the employees who are using the system.

In the first chapter introduction and discussed and forward the basic identification of the selected organization and the past situation of the organization without the Navision ERP. Thereafter discussion will be on TAM model and the next Navision ERP system Introduction and its acceptance and rejection among employees critical evaluation has presented. Thereafter summery and conclusion and finally referred research and text list.

Analytical Instruments (Pvt) Limited.(AIPL)

A 25 year old organization originally sales driven trading business and it is having a turnover nearly 4 billion LKR. Probably the market leader in the scientific instrumentation industry in Sri Lanka and ICT involvement it considerably high and ICT used to gain competitive edge in the industry. In resent past AIPL was able to introduce a major change in to their internal system that is introduction of Navision ERP system. This introduction was done due to various pressing issues in the past Q soft ERP system. According to the preliminary discussions had with the ICT service provider Navision will be overcoming most of the available draw backs in the q soft system.

On time invoicing, correct inventory records, proper financial records marketing records and information will be easily obtainable by the Navision. So that total staff that is directly interacting with system were trained on the usage of the system and external staff was train about the possible requirements that can be obtain from the Navision. The major emphasis on the Navision is that it will increase the effectiveness of the internal sales support staff of the AIPL. Additionally the Sales man in the field will be benefitted from this.

After introducing the system to the organization the situation was not that much accepted, according to sales mans view point. On the other hand some of the practiced processes and procedures also changed that was another negative factor for the effectiveness of the Navision. In this scenario, the complications in acceptance evaluated by using TAM model.

Critical Evaluation According to TAM

AIPL employees are always welcome new technologies unless it complies with PU & PEOU. Q-Soft ERP system was not effective when the organization grow larger so that people has to move to new technology. On the other hand sales forces are the person who brings revenue to the organization so that facilitation from the office staff is a must. In addition to that keeping them free from office work will increase their effective sales time which can use to bring in sales. On the other hand effective sales forecasting and budgeting will bill increase the effectiveness of the sales strategies? Other than that walk in customers should be treated quickly which was not happened previously.

With all those expectations Navision was brought in to the organization. In fact it was practiced with considerable difficulty due to various reasons major reason is that operators are not adequately trained, therefore unexpected delays and errors were occurred, at the same time report generation was quiet remarkable and effective information was able to drawn from the Navision. Previously manually generated target Vs achievement report was generated by a single key struck.

In addition to that stock records were high in accuracy so that prompt delivery planning and delivering was easy. In logistics handling previously information obtained through a phone call but sometimes it was not accurate. In promising a delivery date to a customer need to be concrete and should be matched so that the world of mouth information was not adequate so that more accurate information could be obtained from Navision with very limited time period.

Previously invoicing was not easy for a walking customer so that number of walking customers were dissatisfied. With the available system it was overcame. Therefore introduction of the Navision was really effective to the organization and it was successful. The major reasons behind are meeting the two major assumptions. So that perceived usefulness and perceived ease of use were matched by the technology so that it created a successful launching of the new technology.  

Ecotourism is a golden opportunity to Sri Lanka

Ecotourism is a golden opportunity to Sri Lanka, since it has the required natural resources. Tourism is a good foreign income earner and ecotourism is an emerging that Sri Lanka needs to capitalize on. To identify the current level of ecotourism and the potential of five star hotels to adapt this concept this investigation is conducted. 

The problem statement of this investigation is to identify the challenges and barriers faced by five star hotels when implementing ecotourism. The objectives which this investigation hopes to achieve are to measure the current level of awareness of ecotourism in Sri Lanka, to identify the challenges and barriers faced by five star hotels when implementing ecotourism, to identify the willingness of five star hotels to invest in ecotourism projects and finally to develop a strategic plan to overcome these challenges and barriers faced by five star hotels.

The population from which the sample was selected are all hotels listed in the Colombo Stock Exchange. Hotels have various levels like 3 star, four star and five star it is impossible to investigate all, so the cluster sampling technique was utilized to select a sample of 6 five star hotels located in Colombo and are listed in the Colombo Stock Exchange.

Secondary data was collected from various sources like newspaper articles, corporate publications, government publications, websites etc. The findings of this analysis indicate that the level of awareness of Sri Lanka is low, and there is a great lack of support for ecotourism from the government. The main challenges and barriers faced were incompetent tourist guides, bad infrastructure, natural disasters, lack of cultural endowments, competition, lack of government support, Lack of involvement of community and language barriers.

Tourism in Sri Lanka

Tourism is a major income earner for Sri Lanka and the tourism ministry has been incorporated for than 40 years. As mentioned above ecotourism has been introduced for more than 10 years yet, no proper support has been provided by the ministry. There are many officers and managers within the ministry who have the power and the required resources to develop ecotourism. Since ecotourism not only bring income but also protects the natural resources while developing the rural areas of the country. Having many natural resources like those mentioned above ecotourism is a great opportunity for the country. Since it has a combination of wildlife, forests, culture and interesting ancient cities Sri Lanka is surely an ecotourist’s destination. 

The five star hotels alone cannot successfully implement ecotourism in Sri Lanka since it requires a lot of investment. Therefore it is important for the government to contribute for the development of ecotourism. From the data analysis given above it is clear that Cinnamon grand is the most dedicated five star hotel for the implementation of ecotourism. The other hotels are in the initial stage of identifying ecotourism while Hilton does not speak of ecotourism at all. The SLEF along with the government need to create awareness of ecotourism attained.     

The major challenges and barriers faced by hotels when implementing ecotourism have been identified and the strategic plan provides solutions that need to be adapted by the hotels in order to implement ecotourism in Sri Lanka. This plan is aimed at the managers of five star hotels and also for the government of Sri Lanka to identify the importance of their support in order to effectively develop ecotourism.

INTERNET THREATS AND SAFETY METHODS AMONG CHILDREN IN SRI LANAKA

Now-a-days internet has become a vital part in our life style. In every aspect of our lives, internet has become a part of them. Internet is essential in each and every field and profession. It has become a common and a well-known thing among everyone from the small child to adult persons which means every person in the society is aware about the internet. That means even the small children are aware about what is called internet. In today’s society, children are growing with the technological environment so that it’s not a new thing or magical thing for them further.

Internet has both advantages and disadvantages. When concentrating about the advantages, e-mail facilities, access to information, online shopping, online chat, downloading services can be considered as the main advantages. Identity theft, loss of confidential information/data, theft of network resources, damaged personal reputation; financial losses are the common disadvantages.

  

When using internet, one should be aware about all of those. But, the pathetic situation is when children are using the internet, they are only aware of the benefits of the internet most of the time. Although they are using internet, they don’t know anything about internet threats. So that as a result, automatically they become victims of the internet threats.

Lack of awareness of the internet threats can cause negative consequences on children such as child abuse, sexual harassments, child pornography etc. If no precautions are taken, children and young people can come across serious dangers and become the victims of internet crimes.

If the children are allowed to use internet, they should be made aware by the parents about the internet threats as well as safety methods.  If using those methods, one can avoid the threats and use internet safely without getting affected by any bad impact.

In the course of surveying the research which is the awareness level of internet threats and safety among children researchers tried to carryout a particular structure of the field. Followings were made as the conclusions based on the analysis of relevant literature, the results of questionnaire survey and the findings about the awareness on internet threats and safety among students of both schools.

The study was carried out with view point of identifying the awareness level of children about internet threats and safety methods in Sri Lanka. Though internet is providing many opportunities for children, it has exposed the children to a greater risk due to limitation in awareness about threats and safety. Though many researches have been carried out in this context, after reviewing the literature it was notorious that majority of these studies have been conducted primarily on Western economies. Therefore the study was designed to fill the existing gap in literature and accordingly research objective was set out. The scope was limited to from the grade nine to thirteen students in selected two schools due to the information accessibility.

The sample was collected using stratified sampling method in a way to minimize the sampling error and information was gathered mainly using a questionnaire. Further secondary data was also assisted in drawing an appropriate conclusion. The SPSS software was used in analysing the gathered data through survey. The findings indicated that nowadays almost all the students  have internet access device and daily browse and most of the students are spending approximately one hours browsing internet especially playing online games. Further it was observed that there was no any relationship between parental mediation and awareness level about internet threats and safety among children. However the educational level and concern about threats protecting behaviour are highly affect to the awareness level among children of internet threats and safety.

However it has to be noted that the research is subjected to certain limitations including generalization of the findings among students in other provinces in Sri Lanka since the sample was obtained only from the western province and Sabaragamuwa province.

Importance or advantages of human intervention in a bank

Importance or advantages of human intervention in a bank

Importance or advantages of digitalized systems in a bank

· E-banking: This enables the bank to deliver its services easily to its  customers. To make the system user friendly to all clients, banks have used a Graphical User Interface  , with this software , customers can access their bank details on their own computers, make money transfers from one account to another, print  bank statements and  inquire about their financial transactions. Another technology used by banks to exchange data between the bank and clients is called Electronic Data Interchange this software can be used to transmit business transaction in a computer-readable form. So the client on the other end will be in position to read the information clearly. 

· Plastic money:  Credit cards or smart cards like Visa / Master  have made the banking industry more flexible than before. With a credit card , a customer can borrow a specific amount of money from the bank to purchase any thing and the bank bills them later. In this case, they don’t have to go through the hassle of borrowing small money. Then with Smart Cards like visa/Master electron , a customer can pay for anything using that card and that money is deducted from their bank accounts automatically, they can also use the same card to deposit  or withdraw money from their accounts using an ATM machine.

· Self inquiry facility: Instead of customers lining up or going to the help desk, banks have provided simple self inquiry systems on all branches. A customer can use their ATM card to know  their account balance, or to get their bank statement. This saves time on both sides.

· Remote banking: Banks have installed ATM machines in various areas  this means a customer does not have to go to the main branch to make transactions. This facility has also enabled anytime banking, because customers can use ATM machines to deposit money on their accounts. Remote banking has helped people in rural areas improve on their culture of saving money.

· Centralized Information results to quick services: This enables banks to transfer information from one branch to another at ease.  For example, if a customer registered their account with a rural branch, they can still get details of their account while at the main bran in an urban area.

· Signature retrieval facilities:  Technology has played a big role in reducing fraud in banks which protects its clients. For example, banks use a technology which verifies signatures before a customers withdraws large sums of money on a specific account and this reduces on the errors or risks which might arise due to forgery.

 Disadvantages of digitalized systems in a bank

·         Accessing money through an automatic teller machine (ATM) anytime is convenient to clients. On the other hand, that freedom can allow easier access to people’s money for someone who has stolen  ATM card.

 ·      Online Banking

Online banking empowers customers to pay bills and transfer money without leaving their living room. Unfortunately, it also allows new ways for criminals to seize control of their bank accounts and other information associated with them. If a criminal finds out one’s online banking log in information, for example, he can make money transfers and can probably find other numbers.

 ·      Fast Credit

Advanced banking technology allows bank account holders  to arrange for credit faster than in the past. Decades ago, obtaining credit was purely a paper based process. Today consumers can acquire credit lines instantly. While many people enjoy the convenience of getting a car loan or store credit card within minutes, the temptation can lead them to borrow money they can't afford.

 ·      RFID Payment

By using Radio Frequency Identification (RFID) technology, customers can pay for goods or services by simply waving their debit or credit card in front of a reader. The RFID chip inside the card broadcasts bank information wherever go, which can be quite convenient

for example, instead of having to go into the gas station to pay, you can simply make sure your wallet is close enough to the reader. However scammers can get that information if they have their own scanner.

·      Website Interruption

Many consumers become reliant upon technology to pay bills or conduct other kinds of banking transactions. Ideally, this is a beneficial arrangement.

For example, if client forget a credit card payment, he don't need to worry about whether paper check will get to Credit Card Company in time. Simply log on and make the payment. If the bank's website suffers an interruption, may be unable to send payments to creditors, incurring late fees or other consequences. Unfortunately, websites experience downtime on occasion.

  Importance or advantages of human intervention in a bank

·         Humans provide judgment to the system. It is a common perception that humans are more flexible, adaptable and creative than a purely automatic system. 

Eg:-Banks are tending to keep backups of databases even though how much advanced the existing systems used.

-In ATMs employees are deciding how much cash need to be loaded  for specific periods.

-Implementation Integrated Risk Management processes even though it generate reports through automated systems.

- Banking systems are controlling by the staff through placing username /passwords

 ·         Customer service is the key objective in service organization like a bank

Because it can help differentiate a company from its competitors, the employees themselves in the process of deciding about the customer service, it is them who are in the direct contact with clients and meet those most often

Sales people bridge the gap between customer needs and the product/service that fulfils that need. Often, salespeople are dealing with already warmed up prospects that have an existing awareness of the company through marketing and advertising efforts, and it’s the job of the salesperson to close the deal by introducing further information and helping the customer make those connections.

Bank employees play a key role in the building of loyalty and trust between customer and the bank. There is a high correlation between the customer service quality and profitability.

Eg:-Employees meet potential non customers,even existing customers time to time and create awareness of them regarding banks products/services, benefits of dealing with the bank.

-Initial level customer attraction mostly depends on the reliability of bank staff.

-Even for maintaining existing relationship with clients staff has to work on tactfully .such as keep wishing for B’Days, offering gifts.

 Problems may create through human intervention in a bank

·         Work overload

Extreme pressure, stress, and fatigue from work overload can lead to loss of concentration and consequently to inadvertent errors or omissions. Even the best trained employee cannot sustain flawless work if overtime and overwork have become routine.

·         Complex tasks

If tasks and procedures are too complicated and unsystematic, employees may be not able to repeat them correctly and consistently hundreds of times during the day, every day of the week.

·         Unclear instructions

If the job to be done is unclear and poorly documented, execution may result in errors especially by new recruits. If the procedures and sequence of steps are stored in someone's memory, they may not be repeatable and transferable to others.

·         Lack of standards

If banking procedures lack standards and are subject to whimsical changes, personal style and interpretation, then we are inviting errors and confusion. There is nothing wrong with changing procedures, especially for the sake of improvement. The problem is when these changes are not documented and communicated right away to the rest of the organization. Another problem occurs when it is not clear who is authorized to make the changes in procedures. In this day and age of all-out employee empowerment, we should address this downside risk of changing things without proper and timely documentation and communication.

·         Lack of training

If untrained or inadequately trained personnel are assigned even the simplest of tasks, then errors are prone to happen. If fact, these incompetent employee may not even know they are committing mistakes.

·         Monotonous jobs

The minds of employees bored with monotonous jobs wander continuously. They try to fight the system and eventually lose concentration and make mistakes.

·         Poor working conditions

An employee working under adverse working conditions, will make mistakes, whether he likes it or not. Distracted and irritated by noisy, hot, cramped, or poorly illuminated work area, he cannot put enough attention to the job on hand.

·         Inadequate, unreliable equipment

If employees are made to work with machines that keep on breaking down or difficult to operate, then equipment induced human errors are inevitable.

·         Wrong incentives

Finally, employees must be financially motivated to do things right the first time, rather than to produce the most volume or quantity. Incentives, like piece rates, which are tied to the volume of output, e.g. number of documents processed, can be very counterproductive by inducing employees to disregard quality and accuracy in their haste to reach or exceed quotas.

Conclusion

As highlighted above it could observe importance and issues related to the both systems and employees related to the banking sector.

However the basic purpose of any organization to achieve pre set goals so that it important to hold their employees motivated and satisfied. If the employees are motivated, case by case the quality and quantity of performance increase that has a positive effect directly to all organization’s performance.

Humans provide judgment to the systems though systems provide high efficient contribution towards success of banking activities.

Simply systems can’t play the intended role without human touch in banking .Hence it can conclude that human intervention as the most crucial factor.

Digitalization in Banking system

Digitalization in Banking system

Digitalization is one of the key main aspects discussed in macro level when it comes to banking industry in last decade. Most of the banks in the world are either transformed or in the stage of transformation process towards a digitalized banking environment. It is important to note that this digitalization has supported the banks in many ways to avoid many problems that they faced in the past years with lot of manual work; such as High cost of providing service, obtaining a competitive advantage over other firms that involved in the business, saving more time for productive work etc.

Most of the banks have introduced their own systems by themselves whereas some banks have purchased from system developers. Therefore these systems have provided extended banking activities towards customers as well as it has enhanced the productivity within the organization to a greater extent. Most of the manual work has been automated and it has reduced the work that the staff has involved in the past. Some of the activities that have been systemized are;

-          Balance Inquiry

-          Funds Transfers

-          Cash Deposits and Withdrawals

-          Account’s Opening

-          Credit application

These are only few factors that the bank has included the systems and have made the process more effective. It seems that almost all the functions that a bank involved in have been digitalized. We can observe that the system factor has a greater importance when the bank moves forward in the future world not only to have competitive advantage over the others but also for long term sustainability.

According to the current trends most of customers are requesting for digitalized solutions in banking, simply because they have less time to spend on banking activities. This is a more common thing in the developed countries like USA, UK, German, Switzerland, Japan, Australia etc. Further, most of the young generation is involved in doing banking through systems which is a more common trend in developed countries as well as emerging economies. This is one fact that the banks should focus on when developing e-products. Since most of youngsters using systems it is prudent to invest more on systems than on people in order to have a sustainable future. Currently most of the banks in developed countries are operating in more digitalized environment and physical branch outlets are very less in operation. Therefore in future there will only be virtual banks exist without any staff involvement. This has already introduced to the world and some of the banks are currently practicing it where they say “Digital branch” existence made possible.

There is just a one problem that is customers are not bits and bytes but human beings. Most large banks seem to be ignoring this fact. Customer and bank relationship has consistently found to be widening due to this reason where bank is mostly focusing on the development of its digitalization aspects rather than concentrating on customer satisfaction point. This seems to be much short term strategy where banks need to be careful of handling of the customers who will lose their faith on them in future due to this rapid technology focus. Especially banks do need to think beyond the profits and figures and should focus more on customer satisfaction which is continuously lacking on them.

Since the banking itself is a high contact service, it is important that the people should be treated well in order to have a successful future sustainability. The reason behind this is that the human behavior is not always adhere to such computer based rules, algorithms, statistical methods etc. Further, banking business is a “High Contact Service” which means it always has high involvement with the customer in a very professional way and at high end. At the point of service encounter customer always look for solutions for their financial problems through the person whom they deal with. This proves that the customer is not 100% believing in digitalized solutions for their problems but they seek friendly and courteous service from the professional banker. At the point of financial advisory service we can clearly see this fact and how true it is. Therefore most of the people seek a one to one contact point service still in the society where they feel comfortable. Especially this we can observe from most of the elders as well as emerging country people.

Interaction between the bank and the customer is extremely important rather than being mostly digitalized because it will always connect people. Systems can be unavailable and it can be temporarily out of service at times. But if the people factor is there that means the business is concentrating on business continuity and they have a backup for any system emergency. Further if the telecommunication connections turned down for one day it will be really hard to do your transactions using the systems provided for the activities. Therefore if the bank is about to be mostly digitalized they must ensure that the service won’t be interrupted by any external factors. There are two entities in this people factor

-          Customers

-          Staff

However, the future will be more and more technological. Therefore we cannot ignore that fact that we have to adapt to the situation n future. There will be a day that emerging economies like Srilanka, the whole customer base will demand for digitalized products. Therefore we have to be prepared. Thinking about the future we can say that the system factor is more important than the people factor. But we need to identify the ways and means as to how we can improve the service or the customer satisfaction factors without affected by system failures. Under no circumstances the banks should 100% systemize their functions. Because whatever said and done it is clear human behavior can be only identified by another human. Software or a system can hardly understand this behavioral aspect since it cannot think and do anything.

One can argue that Bank can deliver a speedy and accurate service by using of systems here it gives more accurate results. The question here is “Are these systems or digitalized solutions can understand human behavior? Do these have the human touch required for a high contact service?”. According to the concept of marketing mix there are 4P’s of production mix (Product,Price,Place,Promotion) where as they have extended the traditional marketing mix to 7P’s by including the factors People, Process and Physical evidence. Therefore we can still prove that in a service organization how importantly identified the importance of the people fact.

Further banks can increase profitability by the way of reducing of the staff of the organization to a certain extent. There will be clear profit maximization from this strategy where most of the banks use this as a key strategy by offering staff schemes such as voluntary retirement scheme (VRS). But in this case also we have to consider on the existing staff and keep the required amount of staff to perform the duties. This is mainly because the behavioral factors of the clients and to address them accordingly.

Conclusion

From the above factors we can understand that the both the factors People and Systems are important. But it can swing either way. This is because mainly customers don’t have the proper knowledge of using the systems. They are more comfortable in conventional banking practices. Therefore there is a challenge of providing the necessary knowledge to the customers of using the systems for the banking activities. Further if we are to promote more on systems point of view we need to develop the telecommunication system to the level of signals without breakdowns. There should be a backup plan for any system breakdowns.

People factor too is important. But we should realize the truth that we are moving forward towards a more digitalized environment in future. Therefore it is the System Factor is the more important than People Factor. Further there should be ways and means of meeting the requirements of the behavioral intentions of the customers. With this rapid development in the technology it is not impossible to create things that can feel human touch (Using Artificial Intelligence). Therefore I would go ahead with the system is more important than people factor in Banks in future. 

Modern Day Banking Systems

Modern Day Banking Systems

In modern day banking systems are technological advanced, innovative and user friendly compare to last five years ago situation. To expand their market share, to attract more business banks compete each other with continuous technological advancement and improvement of their staff.

These innovative banking operations have reduced the importance of Branch Banking operations further due to the customers’ acceptability of the internet banking concept.

Banking industry as a whole is being undergo immense changes with the adoption of high tech delivery channels as it would focus more on self-services.

Branchless banking is fast replacing the brick and motor branch due to the advancement of technology. The future of retail banking will depend on electronic banking and it is pro poor system, which will reduce cost to deliver the banking products and services.

Since the business of banking is about financial services, efficient and effective combination of people and systems will lead to the success of the business.

In service marketing sector people are the most important and expensive business system component. People play a vital role in most operational systems and processes. Knowledge, skills and attitudes often determine the quality and quantity of the system output. High performance business system requires right fit of people to jobs.

Jim Collins, in his book "Good to Great," said, "Those who build great companies understand that the ultimate throttle on growth for any great company is not markets, or technology, or competition, or products. It is one thing above all others: the ability to get and keep enough of the right people.

Good systems and processes can leverage ordinary people to produce extraordinary results. They also reduce the company's dependence on people that come and go—especially the superstars. A systemized work environment increases job satisfaction and boosts productivity. People stay longer and become more valuable to the organization.

Recently banks introduced cash deposit machines apart from cash withdrawal machines (ATM). Customers are not more reluctant to use these machines since they feel curious whether the transaction carried out successfully or not.

To encourage the same banks initiate fee on over the counter withdrawals.

Eg.Commercial Bank

Sampath Bank

Survival of the banking industry depends on the confidence and interest of the public towards banks. Accordingly, modern day banking concept is about relationship management, building profitable, reliable and professional relationships with the customers.

To mitigate the default/credit risk Know Your Customer (KYC) concept is played crucial role in the soundness in banking sector.

To provide better service to satisfy their clients banks must have reliable, updated, sophisticated information and supportive system. But for the customer relationship management (CRM), customer interaction is very important. Without direct interaction bank will lost cross selling and upselling opportunities too. It will affect the growth of the business. 

The combination of good people and good systems produces great results. To get top results, banks have to turn their systems more aware and user friendly to their staff. This translates to increased creativity, productivity, and superior customer service.

The overall performance of a quality management system and its processes ultimately depends on the involvement of competent people and whether they are properly introduced and integrated into the organization. The involvement of people is important in order for an organization’s quality management system to achieve outcomes which are consistent and aligned with their strategies and values. It is critical to identify, develop and evaluate the knowledge, skills, behavior and work environment required for the effective involvement of people with the necessary competence.

Further banks must provide guidelines for human factors which influence people involvement and competence, and creates value that helps to achieve the organization’s objectives.

It is critical to identify, develop and evaluate the knowledge, skills, behavior and work environment required for the effective involvement of people with the necessary competence.

On the other hand, when growing a business, it’s important to define, implement, and establish systems early on. A business system is a working combination of people and automated applications organized to meet a certain set of business objectives.

Every aspect of the business should have a system in place to gauge productivity, effectiveness, and growth.

Systems are put into place to leverage resources: time, capital, and assets. With established systems, banks ensuring that every part of the business is being used to its full potential and is available, on call, when need it.

However, when the all banking activities fully automated, collapse of the system will lead to crucial damage to their clientele.Eg. Recent ransomware cyber-attack.

Since the new generation is more technologically advanced than the previous gen and they are more interested on internet banking and related systems.

But the matured generation still intends to walk to the bank and have a chat with bank staff and maintain cordial relationship. This relationship spread positive word of mouth about the bank and it is important for the banking point of view.

It is experienced that pensioners love to walk to the bank on pension date and chat with bank staff and stay in the bank for a while.

Commercial bank introduces applying loans (personal and cash margin) through online. However, to evaluate the credibility of the client, staff has to contact or ask the customer to visit the branch. For the credit decisions interviewing of the customer is very important.

Further the accepting of security documents should be done in front of a bank officer too.

It is experienced that in a day bank have to reply lots of over the phone queries of customers. Fully automated system will not able to facilitate those unsystematic operational requirements.

According to the Commercial Banks of Ceylon PLC annual report 60% of their staff consist with the bankers with more than 10 years’ experience and the management consider its employees are the most valuable asset to them.

Accordingly, discussion concludes with that both people factor and the system factor act a vital role in the banking industry and they are inter dependable on each other.