Telebanking and Electronic Banking

Around in 21 century computer and telecommunication and information systems were developed. This was lead to radical change in the way of human being’s live, work and think.  Rapid growth in computer and telecommunication systems helped to reduction in cost as well as transfer voice, data, images and videos around the world within micro seconds.  Developments in telecommunication were penetrated into banking sector to change physical branch network into digitalized and networked banking services units. Now it causes to change fundamental delivery systems to fulfill enormous requirements coming from the customers. It is expected to change further in banking sector with the development of technology.

The changes in new technologies have brought to banking are enormous in their impact on officers, employees, and customers of banks. Advances in technology are help to deliver product and services conveniently and effectively than ever before, thus competition between banks cannot be avoided due to competitive advantage.

Young generation is not afraid of computers and technology and now they comfortable with personal computers and other electronic devices. They expect fast, efficient, and accurate service. The only way to provide instant, quality service to the customerscost effectively through intensive use of the most advanced information technologies and through good people trained in the use of these technologies.

Benefits of Systems

For the Customers

The banks have incorporated advanced technology to satisfy customer by providing Self-inquiry,Remote banking, ATM, Telebanking and Electronic Banking facilities. Furthermore as information is centralized and updates are available simultaneously at all places, single-window service becomes possible, leading to effective reduction in waiting time.

For the Bank

With the systems banks are able to easilyassist the bank in business development and follow-up due to availability of a wide range of inquiry facilities, Immediate replies to customer queries without reference to ledger-keeper, Automatic and prompt carrying out of standing instructions on due date and generation of reports, generation of various MIS reports and periodical returns on due dates and fast and up-to-date information transfer enabling speedier decisions, by interconnecting computerized branches and controlling offices.

For the Employees

Systems have increased the productivity of employees through the accurate computing of cumbersome and time-consuming jobs such as balancing and interest calculations on due dates, automatic printing of covering schedules, deposit receipts, pass book / pass sheet, freeing the staff from performing these time-consuming jobs, and enabling them to give more attention to the needs of the customer, signature retrieval facility, assisting in verification of transactions, sitting at their own terminal and avoidance of duplication of entries due to existence of single-point data entry.

With the implementation of systems in the banking sector, itenables to provide efficient and convenient service cost effectively. Banking is more service oriented. Therefore customers seek human touch even though more sophisticated technology is implemented. The understanding of customer needs, comments, criticisms or requests for new products are difficult while interacting with machines. Moreover, when customers only contact with their banks through electronic interfaces, it prevents banks to sell additional products to customers through cross-selling and upselling. So it hinders the marketing as well.

It is true that systems add value to the banking industry through advanced telecommunication and related technology. But it is difficult to expect all the things done by the systems since still they are just machines. Systems cannot understand the human feelings and requirements.

Furthermore every person doesn’t have same level of education and the computer literacy to attract and grab the innovations in the industry. Therefore banks should address the requirements of their entire customer base. For thisbanks should balance both systems and people component together.  Even though systems add competitive advantage, the industry cannot solely depend on the systems. Therefore both systems and the people component are equally important in banking sector.

E-Commerce in Sri Lanka

Own experience

my experience on e-commerce is not a good one. mostly regarding to online shopping activities, most of time I preferred to use this online shopping to buy sports items and jerseys, which is not available in domestic Sri Lankan market such as the soccer jerseys of Chelsea football club, Byran Munich football club jerseys, spring box (South Africa) national rugby team jerseys, mostly visited website to buy those items are daraz.lk previous kaymu.lk but in there interface those sporty item looks more colourful and attractive, but advertised in there that these items are high quality ones and but offer no guarantee after the sale. Two or three times I used to buy from them and prices was mostly reasonable was offered  option to pay from credit card and also offered the delivery to the home with additional charge.

but there was not enough details available about the product and there was not any after sales services, or guarantees about the product so the assessing their marketing strategy there is not substantial effort to reduce perceived risk level of the customers so the initially customer has to take high risk when purchasing from them.

So, I accepted risk and purchased from them. Since I live for away from Colombo. regarding that their delivery efficiency was high but the packing was awful and there was not only due care about the product. Product was not that mush colourful and durable than they advertised in their site since there was no way to return product once customer unsatisfied. That purchase was a loss from my prospective and I had to bear that in two or three occasions.

As an investor in Colombo stock exchange, I used to do my most of trading activities via online trading flat form. My first CDS account with the TKS securities put LTD and the early they had a system which was very attractive and very mush user friendly one to do the transaction and was a most efficient trading flat form to use because it has the all the technical tools to analyze the trends on share trading especially.

-         

It was very much descriptive and all account details  such as the current portfolio value, the cost basis value, the cash amount on account, Total port folio balance, margin balance on the account was on the interface and in one click you was able to get the details summary of all the share and cost and their relative gain and adjusted balance in one interface.

-         Due to the cost cutting policies which TKS (Pvt.) Ltd. adapted they introduce new trading flat form and the initial logging password to that flat form was very lengthy one and it took little bit more time to log on to system.

-         Once log on to system the limited data was available on the interface and he had to separately open few more drop boxes to get other details unlike earlier interface. shifting among those drop boxes was tough and some important details was not update especially margin balance. So we had to take a phone call to investment adviser and he has to check with finance division with the remain balance, so the online trading become a mess and I had to close down the account and shifted to company which have maintain prevailing interface.

 Made.com

This was United Kingdom furniture seller and put product and saving front and center in clean in visually stunning interface.

What works?

-         The products are featured in visually over powering way. The item was too big and it feels like you can though it. Compare to other. Furniture seller products feel more alive and vibrant.  Really get a better sense for what you are buying.

-         Product Specifics, including delivery information and dimension are all presented in friendly and intuitive format.

-         The clean checkout, including guest option, makes completing transaction painless.

-         Recommendation from made.com staff reinforce the appeal of the product and help given on added opinion for shopperson the fence.

amazone.com

This has the industry leading abandonment rate is said to be around 65%.

What works ?

-         Most  get top billing, the price, your savings, custom rating its availability and its price in multiple formats give the shopper the most information right off bat.

-         Free  shipping tied with purchase urgency creates a compelling reason to buy now. knowing that the book will be at your door step by soon solves for the instant gratification problem that pulgs on line shopping.

-         The buy button are set to the right on a different colour background than anything else on the page, also the biggest element on the page.

Group on

Their checkout is a study in simplicity, social proof and instant gratification.

What works ?

a house discount and group on hummers home just how much you will save buying now. Most of discount are 50% and creating compelling reason to buy.

-         The clock is literately ticking on a every group on deal. The limited time frame creates a buy it or lose it impulse that makes a buying it now safer than waiting and possibly missing out.

-         Social proof, It is their name, group on shows you how many people are buying the deal, validating your buying stinct and giving you the confidence that others think it is a deal too.

-         The checkout page is simple, clean from, making it easy to get through and complete transaction.

Threadless.com

-         A clean visual search page make it easy to see designs and quickly brows through hundred of shirts design the filters are intuitive (size, style, price) make a narrowing down available choices.

-         The Product pages are on education in less is more with big images and easy sizing options and giant “add to court” but that dominates pose.

-         Social proof in the form of facebook likes, Tweets, Google+ are shown on item’s popularity, reinforcing your purchase decision.

  Issues with e-commerce

-         Lack of Personal Touch

Will miss the touch and relationship that develop with retail store

-         Inability to experience product before purchase

They are many product consumers want to touch, feel, hear and taste, smell before they buy. E- commerce takes away the luxury of that.

-         Need for an internet Access Device

E-commerce can only be transacted with help of an internet access device such as computer or smart phone.

-         Need for an internet connectively

Not just does one need an access device, one also needs internet connectively to participate in e-commerce

-         Credit card fraud

Consumers and business alike suffer from credit card fraud. Some doomsayers go so far as predict that fraud will lead to the demise of online business.

-         Security issues

Consumers can run the risk of identify fraud and other hazards as their personal details are captured by e-commerce business.

-         Delay in receiving goods

If shopping is about instant gratification, then customers are left employ handed for sometime after making a purchase in e-commerce

-         Inability identify scams

Consumers are often taken in by fly-by-night e-commerce web site that look good but are up to no good. Scam artists often accept order and then disappear.

-         Extra ordinary high reliance on website.

For a e-commerce business, its web site is everything even a few minute of down time can lead to a substantial loss of money. 

-         Multiplicity of regulation and taxation 

Regulators are still not clear about tax implication of e-commerce transactions. This is especially true when seller and buyer are located in two different countries. This can be lead to multiplicity of taxation as well as higher expenses on accounting and compliance.

-         Charge backs

Credit card issues are quite liberal in permitting charge backs upon customer request. This put e-commerce business in a bad position if the goods have already been delivered.

-         Need for expanded Reserve logistic

In case at physical retail, customer are usually willing to travel to the retail outlet to return or replace if required. But receiving goods back is bigger night more on e-commerce business. This has led to the growth of the reverse logistic functions.

  No standing queues or being placed on hold forever.

-         Easier to compare prices

There several shopping search engine and comparison shopping website that help customers to locate the best price.

  

-         No need for a physical store

Since there is no need for a physical store e-commerce bussiness save on one of biggest cost overhead that retailers have to bear.

  -         Common availability of coupons and deals

Through there is nothing about e-commerce that makes intractably oriented to discounts the way online business has led to lowered prices on line. this is an advantage for the buyer.  

-         Lot of choices

Since there are no shelf size or store size limitations e-commerce business are able to list any different items.

-         Stores are open all the time

Eliminating the limitation of store timing is a bigger convenience for customers.

-         Ability to buy and sell to other consumers

Action sites and listing sites allow individual to buy and sell for each other this operas whole new paradigm of e-commerce.

-         Ability to have vendors bid for your business

Online business has opened new vistas for consumers. It is now possible to list your requirement online and have supplier bid for your business.

-         Not about location

Conventional wisdom lay a log of emphasis the location of physical store but e-commerce has liberated business from shackles of location.

-         Ability to scale up rapidly

E-commerce business are able to scale up easier than any physical retailers as they are not bond by physical limitations of self space. With the choice of right third party logistic provider one can scale up one’s logistic too. 

-         Unlimited self space

Being liberated from physical store also entails being liberated from the limitation of self space. This allows e-commerce business to “stock” wide range of products.

 -         Ease of communication

Since the e-commerce merchant captures contact information in the form of e-mail sending out automated and customized e-mail is quite easy.

-         Superior customization

Using cookies and other methods of monitoring a consumer’s behavior, on          e-commerce website can customize may aspect of what customer sees.

-         Efficient procument

Because entire supplicant can be linked with business to business e-commerce system, procument became faster ,transparent ,cheaper.

-         Superior inventory management

If e-commerce business can tune in to order processing system of their suppliers, they can maintain lower inventors and still not face stock out situations. 

-         Reduce employers cost

Since e-commerce process automated to large extend fewer employ are required for lower end  jobs. Human resources can be used more effectively for high level functions.

-         Ability to track logistics

Since effective logistics is the key to successful e-commerce business, the ability   to    trigger   and  monitor   logistic   online   is   available   tool   for   the e-commerce business.

When I first learned about the Professor William Edwards Deming idea that 95% performance should addressed to the system and only 5% to the people it seemed totally counter intuitive to me. Not even the idea it self but its consequences. I mean a simple thought that you can basically stop working individually with people on their performance as it just not make any sence.  The impact of suboptimal system improvement should be ten fold or better than the best possible people related changers.

The original theory of 95 / 5 was not about performance I think literal but about variability in performance. Let me use a sport analogy to explain that let’s take a basketball player if he scores anything between 5 and 30 points game and neither of extreme is an extra ordinary bad or extraordinary good game for him,variability of his performance high, as a comparison we can have another guy, a second tier player who regularly score anything between and 0 and 5 points. Variability of his performance is significantly lower, Even though his average performance is significantly worse.

Now is not surprise that system  govern variability, I mean the more repeatable the situation the less variability you can expect . If the team player are consequently set to create situation for one player his performance. will be sort of repeatable. He won’t suddenly disappearing  from the game. At the same system also govern the variability of performance of a role player who joins the game only under special circumstances (eg:- when team need more three pointers or may be when one of important player is injured variability of performance of such a play will be significantly higher).

Of course to some points  system also governs performance itself, think what happens when the star player sits on the bench through out whole game or when a guy who is typically a sub players in thewhole game. It does not mean, however that you tell a third-tier player to substitute team leader and expect them to score 30 points a gone. It is not going to happen in consistent manager.

What professor Deming was talking about basically that system governance is responsible for creating stable and repetitive environment. So people’s performances are controllable. Again it is not about how exactly people perform but how their performance varies day to day.

 It can be true to factory floor in other words it is place where workers are suppose to produce same thing in repeatable manner. I could exploit the basket ball analogy further pointing that every game, every play is different, but I guess in software development we simply do not need that analogy anymore it’s enough to ask him many time have you built extract the same feature. 

And for all sometime who accidently have this chance, but how many times have you built the feature in second time in exactly some way you did first.

I bring this argument to show that in knowledge work, or sport, we naturally have significantly higher variability to deal with and unlike shop floor that is good, what more there is different value attached to every single thing we develop in fact even worse them that. Very often we do not know exactly what value attached to each item we are going to build so we need to take account both expected cost and expected pay off. Naturally is not consideration on a shop floor as in this situation pay off or each part is well known. In knowledge work on the other hand pay off function is extreamly important and never flat.

Coming back to basket ball analogy it youwanted to bet which player is going score 30+ points during next game would you rather chose reliable guy who avarage 15 and who always score double figure but rarely, if never exceeds 20 or rather crazy shooter who average is as well but depending on the day can score either nothing or 40+ points. Bravo you have just chosen higher variability. This is because you have taken pay off into account in former case any pay off is almost impossible as because of low variability. it is highly unlikely that the guy is going to score 30+ points. the other case is different story though.

Now especially when we think about product development we are in betting business, we bet that this or that feature will bring a ton of new users or track load of money. We can’t ignore the pay off function, we can’t assume the pay off functions flat. In either case we would be throwing the baby out with the bath water.

Let’s try to translate low level many factoring process> The production line would be a sort of process. Analyzes, coding, testing, development what interesting thought is what is happening on each of these stations how exactly the work done, who make  the decisions by whom the work is done. Take coding for example who decides whether  unit test are there or not, how many of them, what kind of them, who decides on specific coding style a manager. Most of even every, of those division made by coder or worker.

The conclusion of this theory is that in our world workers can be influence the system heavily. Thus completely change the Demings equation. All n’ all in knowledge work there is clear line that separates system from people thus the whole notion of addressing the specific part of influence to one or the other is flawed.

My massage in all that is that we should first understand our work. How it gets done and what kinds of system we operate in. Because when we think about that it is become oblivious that there is no simple way of separating the people from the system in knowledge be work so the my argument is people are equally important or sometime more important than system according the types of work that engaged in and some time system are more important in less variable, respected work.   

Technology and Banks Transformation

The 21st century is all about convergence of computing, communications, information and knowledge. This will radically change the way we live, work, and think. The growth of high speed networks, coupled with the falling cost of computing power, is making possible applications undreamed of in the past. Voice, data, images, and video may now be transferred around the world in micro-seconds. This explosion of technology is changing the banking industry from paper and branch banks to' digitized and networked banking services. Bankers are convinced that investing in IT is critical. Its potential and consequences on the banking industry future is enormous. Advances in technology are allowing for delivery of banking products and services more conveniently and effectively than ever before - thus creating new bases of competition

Technology and Banks Transformation

Computers are getting more sophisticated. They have given banks a potential they could only dream about and have given bank customers high expectations. The changes that new technologies have brought to banking are enormous in their impact on officers, employees, and customers of banks. Consistent management and decision support systems provide the bank that competitive edge to forge ahead in the banking marketplace.

The advantages from computerization are from three sides - to the customer, to the bank and to the employee.

For the customer:- Banks are aware of customer's need for new services and plan to make them available. IT has increased the level of competition and forced them to integrate the new technologies in order to satisfy their customers. They have already developed and implemented a certain number of solutions among them:

-        Self-inquiry facility

-        Remote banking

-        Anytime banking-

-        Telebanking: A 24-hour service through which inquiries regarding balances and transactions in the account can be made over the phone.

-        Electronic Banking:

For the bank. During the last decade, banks applied IT to a wide range of back and front office tasks in addition to a great number of new products. The major advantages for the bank to implement IT are:

-        Availability of a wide range of inquiry facilities,

-        Immediate replies to customer queries without reference to ledger-keeper as terminals are provided to Managers and Chief Managers.

-        Automatic and prompt carrying out of standing instructions on due date and generation of reports.

-        Generation of various MIS reports and periodical returns on due dates.

-        Fast and up-to-date information transfer enabling speedier decisions, by interconnecting computerized branches and controlling offices.

For the employees. IT has increased their productivity through the followings:

-        Accurate computing of cumbersome and time-consuming jobs such as balancing and interest calculations on due dates.

-        Automatic printing of covering schedules, deposit receipts, pass book / pass sheet, freeing the staff from performing these time-consuming jobs, and enabling them to give more attention to the needs of the customer.

-        Signature retrieval facility, assisting in verification of transactions, sitting at their own terminal.

-        Avoidance of duplication of entries due to existence of single-point data entry.

The new Delivery Systems. The increasing cost of building brick-and-mortar branches, decreasing cost of computers, high delivery costs and slow revenue growth force a relook at the conventional delivery systems. Moreover, growing comfort of technology usage by the customer is rapidly fostering usage of non-branch channels for routine transactions.

Human Resources (People) Problems. Banking industry is heavily depending upon information technology that needs professionals for development, implementation and support.

Problems that are facing banks with people.

-        Shortage of qualified personnel.

-        Lack of professional training programs-

-        High turnover rate of technical staff.

-        Resistance to change.. The only way to solve this problem is to design adequate training programs and increase the awareness of the employees. Most banks have realized this fact and some of them have established a training centers.

Therefore it is very much need the support of the systems as well as from people to run the banking industry where highly vulnerable. The banks are therefore faced with the challenges of matching skills and performance to compensation systems to retain the best and skilled employees.

E-Commerce Experiences in Sri Lanka

E-Commerce-E-commerce is a process of buying, selling, transferring or exchanging products, services, and/or information via electronic networks and computers. There are several categories of ecommerce web sites such as B2B, B2C, C2C, e-learning, e-government and etc. Both organizations and consumers getting benefits from ecommerce web sites. For an examples consumers getting benefits such as more products & services, cheaper products & services, instant delivery, information availability and participations in auctions. There are several business applications that used e-commerce namely online banking, email, electronic tickets, instant messaging and online shopping & order tracking. In this document I will share my online experience in Sri lanka and overseas.

1.               Categorize Experience

Good experience- The product which I purchase from e-bay and other online site reaches me on the said date, which had given me good experience and trusted.

Bad experience- One of my friend had ordered a product from Alibab.com, the product had not been received by him and the cash refund had taken place after 02 months, which had made him to reduce confidence on alibab site  and  continue  purchasing with e-bay.

Delaying experience- My friend had ordered a pair sandals from alibab.com , but the product had reached him after 02 months due to some festival in china which had made the shipping delay and the customer was disappointed  with the poor service.

Delay in refunding experience- My friend had ordered a pair of sunglasses from alibab.com long time back, he had not received the product and he had been refunded for the product nearly after 03 months.

2.               Product Purchasing

 With an average of over 10,000 visitors per day and over 186,000 Facebook fans,

ü  WWW.MYDEAL.LK-          

It is one of the top e-commerce websites in Sri Lanka that has grown every step of the way, remaining ahead of the pack while delivering exciting new offers that are beneficial to merchants, stakeholders and their colossal clientele. This web site (mydeal.lk) having different product categories such as Automotive & Car Care, Bags & Luggage, Bed & Linen, Books, Computers & Accessories, Electronics, Food & Drinks, Home & Garden, Pet Care, Wrist Watches, Footwear, Jewelry & Fashion, Mobile Phones & Tablets, School & Stationary, Events, Office Supplies, Sports & Outdoors, etc.

From this website I have purchased the following items

Ø  Shoe rack

Ø  Laundry bags

Ø  Ironing cloths

Ø  Glass storage bottles

Ø  Jar sets

Ø  Glass pitcher with lid

Ø  Huawei Honor 4X Gold Smart phone

Ø   Electric foot massager.

ü  WOW.LK

Another prominent online site which I do purchase frequently is the “WOW.LK”.

Wow.lk is the other one of the online store that I’m accessing frequently. Their having different categories of products such as Electronics, Phones & Tabs, Fashion, Home & Kitchen, Health & Beauty, Baby & Kids, Sports & Fitness, Foods & Giftables, Brands and Others. The “Other” category contains the beverages, books, stationaries & office items, services (TV services, AC services), musical instrumentals and automotive. The “Brands” category contains the products under brand names such as Samsung, Sony, LG, Unilever, Lego, Yamaha, etc. On the “Deals” page, you can quickly see the latest discounted products.

From this online store I purchased the 32GB USB Pen Drives with discounted price plus five years company warranty. I paid online and pick up that from their store at Thimbiriygasya.

ü  THE HOUSE OF GIFTS

The House of Gifts” is the one of the online gift store that my sister in law accesses frequently.

This online gift shop contains homeware including tableware, candles, vases, cushions, ornaments, accessories, glassware and gifts for Ladies, Gents and Kids. They offer some of the best deals in Sri Lanka for gift items sold online.

The items which she frequently purchase from this is the

ü  Flower Vases

ü  Cushion sets

ü  Glassware items

ü  Gift items specially during the festival season

ü  Toys for kids

ü  “CATCHME.LK”

“catchme.lk” is the other one of the online store that I’m accessing frequently. Their having different categories of products such as Gadgets & Widgets, Lifestyle & Living, Powerbox, Bed Sheets, Garden & Outdoor, Beauty & Wellness, Vehicle Accessories and Health & Fitness. Their having clearance sales that up to 90% off and combo deals that same as up to 90% off. We can pay online or cash on delivery time. From this online store I purchased the toaster with company warranty and paid cash on delivery time.  

ü  E-Bay –E-Bay Inc. is a multinational e-commerce corporation, facilitating online consumer-to-consumer and business-to-consumer sales. Even though there are many popular online purchase sites across the world most people prefer e-bay since its very convenient, reliable & trustworthy online portal which has a strong customer base. I have purchased many items from e-bay, which includes.

·         Phone Cover

·         Dress items

·         Pen drive

·         Selfie stick

·         Wireless mouse

3.               Website Visited

I have visited many websites with regard to online purchases, since the technology is widely spreading in the global world, access to online purchases have become easier and convenient for Consumers. The websites which I have visited so far as follows.

ü    Tori house-

Is the one of the Facebook page gift store that I’m accessing? This Facebook page contains the different categories of products such as Emoji Mugs, Decorative Flowers, English Country Cottage Design Metal Vases, Jewellery Stands & Boxes, Glass Bottles, Vases, Mirrors & Wall Hangings, Candle Holders, Metal Furniture, Kitchen Utensils, Clocks, Teddy Bears and Aprons.

ü    Ikman.lk- It is one of the most popular website in Srilanka, it has become one the popular website to purchase and sell goods of any kinds from across the island. We can Buy and sell everything from used cars to mobile phones and computers, or search for property, jobs and more in Sri Lanka!

ü    Ideabeam.lk- It is one of the most popular website in srilanka , where it gives in-depth information regarding the prices , specifications of electronics items (All brands of phones, tablets, power bank, charger, etc)  which could be purchased in srilanka. It gives the prices ranges of the products with the specifications of the location which could be purchased in the market, I personally prior to purchasing any electronics items I get the details of the prices and do the comparisons and make the purchase at the shop which gives highest customer service.

ü    Alibaba.com- It is one of the fastest growing online site to do purchasing , it consists categories ranging from Apparel, personal care, food, telecoms, sports & gift items , electronics with colors ranges and specifications to customer requirements, with lower delivery cost.

4.               Website Comments

Prior to purchasing products from online , I first go through the web site comments with regard to customer comments with regard to product in terms of product quality, sellers details, time of delivery and any delays any unique comments with regard to the products. These are the comments which were available on the site at the time of viewing the products. These items were purchased from e-bay.