BANKING INDUSTUSTY AND IMPACT OF INFOMARTION TECHNOLOGY ON RETAIL BANKING

By NIKHIL CHADA (ST0008235)

A DISSERTATION submitted in partial fulfilment of the requirements for the degree of Master of Business Administration (MBA) At London school of accountancy and management Affiliated to university of Wales Supervisor: Mr NARINDERJITH PANGLI

April 2011

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ACKNOWLEDGEMENT I am heartily thankful to my supervisor, Mr NARINDERJIT PANGLI, whose encouragement, guidance and support from the initial to the final level enabled me to develop an understanding of the subject. I would also like to thank Mr Dak Patel, principal London SAM, Mr Aunul Islam, chair of exam board, Mr Mussadiq Merchant, course administrator for their support. Lastly, I offer my regards and blessings to all of those who supported me in any respect during the completion of the project. Regards, NIKHIL CHADA ST0008235

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DECLARATION This work has not previously been accepted in substance for any degree and is not being concurrently submitted in candidature for any degree. Signed Date STATEMENT 1 This thesis is the result of my own investigations, except where otherwise stated. Where correction services have been used, the extent and nature of the correction is clearly marked in a footnote(s). Other sources are acknowledged by footnotes giving explicit references. A bibliography is appended. Signed Date

STATEMENT 2 I hereby give consent for my thesis, if accepted, to be available for photocopying and for inter-library loan, and for the title and summary to be made available to outside organisations. Signed Date

Candidates on whose behalf the University has approved a bar on access should use the following version of Statement 2: I hereby give consent for my thesis, if accepted, to be available for photocopying and for inter-library loans after expiry of a bar on access approved by the University of Wales on the special recommendation of the Member Institution concerned. Signed Date

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Summary of Dissertation

Title: MR Surname: CHADA Forename(s): NIKHIL Institution: London School of Accountancy and Management (London SAM) Degree Sought: Master of Business Administration (MBA) Title of Dissertation: BANKING INDUSTRY AND IMPACT OF INFORMATION TECHNOLOGY ON RETAIL BANKING

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ABSTRACT
This paper is about banking industry and the impact of information technology. Information technology has played a major role is stimulating the expansion of banks and it provided different services for many years. After the implementation of these services the efficiency of the banks increased and it showed a good correlation between technology and profitability of the assets. We would see the history of retail banking industry and its transformations with information technology. This implementation of technology made retail banking an easier and save process where the customer can access the bank at anytime and from anywhere. Here are the customers really satisfied or not is the main concern. As the competition in the banking industry is increasing day by day to retain an existing customer is the task for the banks. We will check and see how the customers are actually responding to the new technological changes in the process of retail banking as the banks have introduced many innovative and personalized services as phone banking, ATM's and Internet banking. Knowing the current situation of satisfaction can become the main platform for the future to build a more customer focused services. It not only showed an increase in customer satisfaction but also showed a significant increase in the profit level in their transactions. The retail banking industry has benefited more by implementing the information technology. The different services that were introduced in the retail banking industry from the beginning to the present day it was a gradual change. From storing data on to paper now it is stored in a database. Earlier customer would go to the bank and now the bank can be accessed from any place and anytime of the day. A secured and a privatized type of transaction can be seen where the customer has no fear to do the transactions.

Contents
ABSTRACT.........................................................................................................................5 Contents................................................................................................................................5 Executive Summary.............................................................................................................7 Page 5 of 85

1. Chapter.............................................................................................................................9 1.1: Introduction.............................................................................................................10 1.2: Research Objective..................................................................................................13 2. Chapter...........................................................................................................................14 2.1: Literature Review....................................................................................................15 2.1.1: Personal Computer-Banking:..........................................................................20 2.1.2: Telephone Banking:........................................................................................20 2.1.3: Internet Banking:..............................................................................................21 2.1.4: Branch Networking:........................................................................................22 2.1.5: The Downsizing of Banks................................................................................26 2.1.6: The end of cross subsidy..................................................................................26 2.1.7: The move away from the Branch Network......................................................28 2.1.8: Hub and Satellite Banking................................................................................29 2.1.9: Security and accessibility.................................................................................30 2.1.10: Consumers & EFT..........................................................................................31 2.1.11: Does technology give banks a competitive advantage?.................................32 2.1.12: Mondex Function...........................................................................................34 2.1.13: The Needs Based Model................................................................................37 2. 2 :positive aspects of crm in banking sector...............................................................42 2.2.1 Improving customer satisfaction:......................................................................42 2.2.2: Enhancing profitability:....................................................................................44 2.2.3: Operational excellence:....................................................................................45 2.2.4: benefits for the customers................................................................................45 2.2.5.: benefits to the employees................................................................................45 2.2.6: benefits for banks.............................................................................................46 2.3: CRM challenges......................................................................................................46 2.3.1: Exorbitant Costs...............................................................................................46 2.3.2: Inadequate Focus On Objectives.....................................................................47 2.3.3: Insufficient Resources......................................................................................47 2.3.4: Inappropriate Metrics.......................................................................................47 2.3.5: Complex Systems.............................................................................................48 2.3.6: Business Needs Are Most Important................................................................48 2.3.7: No Customer Focus..........................................................................................48 2.3.8: Slow Returns....................................................................................................49 Page 6 of 85

3. Chapter...........................................................................................................................50 3.1: Research Methodology............................................................................................50 3.2: Primary Research....................................................................................................50 3.2.1: Quantitative Research:.....................................................................................51 3.2.2: Qualitative Research:.......................................................................................51 3.2.3: The satisfied measurements:............................................................................52 3.2.4: Banking Habit by Education degrees:..............................................................53 3.2.5: The choice of Bank Transaction:.....................................................................54 3.3: Secondary Research Analysis:...............................................................................57 3.3.1: Press Articles and Industry Reports:................................................................57 3.3.2: Related Books:.................................................................................................57 4. Limitations of research..................................................................................................57 4.1: Reliability:...............................................................................................................58 4.2: Validity:...................................................................................................................59 5. Research ethics...............................................................................................................60 6. Finding of research.........................................................................................................61 6.1. Survey Questionnaires:............................................................................................62 6.1.1: Case 1...................................................................................................................66 6.2.2: Case 2...................................................................................................................67 6.3.3: Case 3...................................................................................................................68 7. Analysis/discussion........................................................................................................68 8. Pitfall of CRM................................................................................................................71 9. Conclusion......................................................................................................................72 10. Recommendations........................................................................................................77 10.1: Cultural Diversity..................................................................................................78 10.2: Training or Public education.................................................................................78 10.4: to study the customer following suggestions emerged from the study:................81 References:.........................................................................................................................82

Executive Summary

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The retail banking world and also its financial managements are preparing to alter from many of the reasons like the deregulation and globalization, which is increasing. While every day the implementations in the technology department are innovating new and more sophisticated and user friendly services for the customers which we can see in the smartcards like the credit and debit cards, ATMs, Internet banking and Phone banking these services are making the retail bank go closer to the customer and at once they can attend many customers very quickly also. How the customers will reply for this new technology? Are the customers are able to accept the services provided by the new banks such as internet banking, phone banking, ATMs and Smart cards or the customer still prefers the old method the traditional service where he needs to travel to the bank to get the service which is personalized given by the bank staff. The main focus of this research paper is on retail banking industry and shows how do the customers perceive the service and elaborates about the interests of the customers by the new technological changes, which were introduced by the retail banks. As in the banking industry the competitions is getting intensified day by day and the customer's expectation are also increasing, acquisitions and mergers and the main reason the globalization and deregulation and technological innovations are increasing have changed the scenario of retail banking industry. Which is the customers preferred facility? Is the customer happy with the facilities providing by the bank such as ATMs, phone banking, internet banking and smart cards or they are interested with the old pattern of banking style which has the human touch in it? This research would mainly focus about the retail banking industry, and tells the customers intension in accepting their services from the retail banks do they still have quality in their services and do they like this new information technology advancements which are implemented by these retail banks.The changes in the technological field, which paved way for greater customer expectations, the competition was intensified like the acquisitions and mergers, globalization and deregulation have changed all the rules of the retail banking industry. The survey is a combination of questionnaires and interviews to check or identify the expectations of the customer to the services provided by the retail banks. Comparing can check the customers satisfaction the traditional services provided by the bank to the new Page 8 of 85

and improvised services with technological innovations in the services like the Internet banking, Phone banking and ATMs. By checking the levels in which the customers compared to the traditional style of banking have used the services. What are the main factors the customer focuses when he is choosing a service in their bank? 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 bank tellers as it had the human touch in it.

The retail banks have to become more customer focused in creating both profitable and meaningful customer experience which is a significant challenge for the retail banks to keep up with. The report analysis has found that the technology will compulsory useful to make the customers satisfy more than expected in the retail banking customers till the services provided are effective, easy accessible and where the customer would not incur any extra charge for this service. To enhance the multi functioning and also to enlarge the customer base line it may be usefulinformation thatwas cited by Cole and Wayland in the customer connection.

1. Chapter

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1.1: Introduction
As the world of business industry was taken over by a two-lettered word called as the information technology. That is the innovations in the telecommunications, related technologies in the information processing is known as "information technology" these would often help to fuel the strong growth for many economies (Coombs et al, 1987). Even banking industry was not spared by this change. Today we cannot imagine the business world without information technology. The retail banking industry particularly has benefited a lot from information technology. During 1952 to recent times a revolution took place in the banking sector, where people deposited their money into the banks that was kept safeand could be accessed only through a check or draft. But today the tractions can be done online within seconds the transactions are done. The banking industry was adapting to this change. Almost all the banks started to see the impacts on the operations in the new banks in the country. The banks had a large arrangement of information technology in their business functioning and it proved one of the biggest advantages of information technology. Initially banking was done personally where customer had to travel to the bank to either get the information or for transaction. In the bank everything was done on paper that is the ledger books for maintenance of accounts, taking customer information, checks, receipts, in and out book maintenance, transfer of money. The retail banking is a very large issue and always relates with the commercial banks also with individual customers as in the balance sheet it shows both the assets and the liabilities. For the liabilities it deals with savings or current or fixed accounts also the loans and mortgages like the educational or housing or the personal loan for the assets side as these are very important products that are offered by the banks. This also has services that include the credit or debit cars or the services, which are related to deposits. Retail banking is nothing but providing services to both the customers and the smallscalebusinesses, which are having number of transactions of low value. This is very different when compared with the normal banking the customers are large in number like the governments or enterprises or the multinational companies that deal in smaller numbers with a high value in the transactions.

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Lending and retail banking both are considered many a time as synonyms, but it is assumed to be a part of retail banking. The customers are given priority in a smooth way in this retail banking, and it is mainly divided into three important forms and they are as follows: the multiple groups of customers either be it for small business, consumer or corporate. The multiple distribution channels like the branch, call center and Internet and the last one is the multiple product like the securities, credit cards, insurance and deposits and investments. "A power has risen up in the government greater than the people themselves, consisting of many and various powerful interests, combined in one mass, and held together by the cohesive power of the vast surplus in banks." (John Callhoun, 1836) The change started very slowly with preliminary soft wares or the database for the maintenance of their data in the background. And gradually it started to grow and importance of information technology was increasing. It was used in very sector of the bank. They introduced new technologies and made the process more customers centric and with each new technology the bank received great appreciation from their customers. For very small information the customer had to travel to the bank 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 problem 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 account 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 information about is balance all this by following few easy steps. And the banks 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 got habituated with these technology and they started to withdraw money on a frequent basis. And the many other applications were introduced in the banking sector by the information technology like the online, mobile service, SMS service, electronic authentication and electronic signature services. And the banking industry has also taken care of the security as it plays a vital role when the transactions are through the Internet. A secured site is provided to Page 11 of 85

the customer to perform his transactions through the Internet. No other industry has gained profit from this as the banking sector. As in the middle of an economic fall and the reforming of the financial legislation to the banking industry in the past few years the impact of these information technologies innovations on the customer behavior was very huge. The information technology has introduced new ways of delivering the retail banking to the customers and hence retail banks have found themselves at the adaptation of technology for past decades. The main question rises is that the retail bank customers are able to like this technology services are more interested about the older tradition that had a banking staff's personal touch to it. As the services that the customers receive are given by the banks in the after working hours, were the help is available to the customer 24/7, accuracy and reliability and at low cost have become important to the retail bank customers when compared to the traditional system the new improved technological help that the banks are getting have become very famous among their customers. With the retail banks reputation in the banking industry it has to think of new strategies to satisfy their customers and also keep their loyalty. Understanding what are the important pointers about the customers that would keep them satisfied. Meeting the customers expectation should be the first thing to keep in mind of the bank to keep the loyalty of the customer. "Everyone knows that customers are more knowledgeable and more skeptical than ever before and that in today's environment they do a lot more homework before committing to a bank's service. Many consumers will check products and prices online before making 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 maximum transparency." In the retail banking industry they have seen a speedy growth due to the Web that is creating great opportunities for the new businesses in the retail banks. And it also shows Page 12 of 85

an important method to see available bankers in the market "Experts estimates that consumer use of on-line banking services will increase over 20 fold by the end of the century. Geography and the number of branches become irrelevant and community banks are able to offer the same level of service and convenience to customers as the largest banks. In the past over 60% of existing bank customers have cited bank selection to be based on convenience of location. For the customers of today, convenience of location includes the availability of 24 hour access via the Internet."(Wilson 1996). The present bankers are concentrating on how the customers will transact and it also shows their traditional banks against their online challengers (From Darby 1999). According to Fletcher's Research "around 200,000 people in the UK are already banking online and predicted seven million would be by 2002." According to Vernon (1999) with the Internet the banking brands should face the competitors to attract their customers, which will be hard to focus due to pressure. "By the year 2005 two billion people will be on the Internet representing 90% of the buying power on the planet."

1.2: Research Objective

The research objective is to show the customers level of satisfaction in the retail banking? Page 13 of 85

The customers level of satisfaction with the traditional services which is provided by the bank tellers compared to the satisfaction level of the technological services provided like the Internet banking, phone banking, Smartcards and ATMs. What are the reasons behind the customer satisfaction in the retail banking with all the technological changes? Check how frequently the customers are using the new services like the ATMs, Internet banking and Phone banking when compared to the traditional system of banking.

2. Chapter

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2.1: Literature Review

The meaning of Retail banking is that it provides a deviated service to their customers. The basic service of retail banking is checking and saving accounts. Many retail banks have arranged for services where the customer can do all his business at one place. Due to this the customer would stay with them and it would evidently show the customers loyalty. As the banking services have opted for many changes, which would show the increase in the profit level. The retail banking is customer centric. The services that the retail bank provides are residential mortgages, deposit services, installment loans, individual retirement accounts and equity credit loans. As retail banking is equipped with many services have high businesses in the banking industry. "Customer satisfaction is result expectations."(Kessler 1996) After the banking industry was taken over by the technology even retail banking also changed to this technology driven society. Earlier the retail banking was functioning in a personalized style that is the customer had to go to the bank to do any transactions and they also had to wait for their turn to do the transactions. Money plays a vital role in any economic life of the human being. In the ancient Greece and Rome they had a practice of storing precious metals and coins in safe places. According to them safest place to store all this was the temple. Temples in the Greece and Rome accept precious metal gold and coins and in return they used to give a receipt for the deposit. Loans were also given to the people and interest was collect from them. Traders who carried money with them while travelling they deposited their metallic coins to a well known merchant who gave hinds "the letters of transfer of money" this is how the system of banking started from here. During the 17th century goldsmiths in London became the moneylenders. After this modern banking system has evolved. The banking industry was mainly divided into three type's reserve banks, central banks, cooperative banks and other private banks.

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"A bank collects money from those who have it to spare or who are saving it out of their incomes and lends this money to those who require it"(Crowther) Retail Banking is a business process in which the money is collected from the people in the form of deposits or loans, which are given, to the businessmen and industrialists and to the common people out of the deposit amount. The banks from the early stages have been playing a crucial role in the economy. They have been providing credits to industrialists, traders, agriculturists and many others to invest for a productive use. " A banking company is one which transacts the business of banking which means accepting for the purpose of lending or investment of deposits of money from the public repayable on demand or otherwise withdrawals by cheques, draft order or otherwise"(banking Companies Act, 1949). In the banking system the customer has to go to the bank to either deposit or to withdraw money or to get any information. Earlier everything in the banks was stored on paper that customer information, ledger books, receipts, account information and in and out management of banks was stored in the papers. Then the introduction of the first software the data ware was introduced by the information technology and storing the information was easy and they didn't need a room to store the data. This was the first impact of information technology on banking industry. Then they introduced the plastic cards which had a customized personal identification number called as the "PIN number" which would be allotted to individual customers specifically designed for privacy of the customer. With this plastic card called the Debit card customers can get information about their account a saving or a current account from the Automated Telling Machine they can deposit or withdraw money within seconds. Then the Internet influenced business industry. With the entry of Internet the banking industry was the one, which benefited the most. Customers who travel a lot it was becoming difficult for them to transact. Then the solution that the information technology came up with is the online service, which would make the bank 12 available 24hours a day and 7 days a week. Customer is asked to online to a secured site in which he needs to answer the security questions and then the customer gets his username and password for Page 16 of 85

his online banking account. Where the customer can transact his current or saving account, can transfer the money to other's account with a different bank account number, also they can do the trading they can sell and buy the shares online. The customer can even take the print of his account statement all this can be done from any system or place. "Banks lend by creating credit. They create the means of payment out of nothing." (Ralph Hawtrey) This was appreciated by the customers a lot and the bank took all the necessary steps to satisfy the customers. This is a convenient process where the customer can access his saving account or current account and transfer the money to another account without even travelling. Through this online and wireless banking the customer can pay his bills without going to his bank. Electronic authentication and Electronic signatures banks is used for proper identification of the customer's identity. These processes would increase the efficiency of electronic transaction. Secured online encryption is a safe of doing the transactions when the customers are online. Mobile banking is the calescent area in the banking industry and very soon it would be replacing the credit and debit card systems in the near future. Most of the banking industry are sending the alerts through SMS to their customers it is safe and very useful now a days. Magnetic Ink Character Recognition is a technology mainly used by the banking industry to check the processing of a cheque. These characters are printed with magnetic ink to a toner. Security is one of the most important factors for any information technology based processing and which is very critical. Many security measures should be taken care of. To validate the transactions the " Maker checker concept, transmission of electronic messages over a network in encrypted form, due authentication by means of providing digital signatures and storage of electronic records in conformity with the provisions of the IT Act, 2000 and amendment 2008." Electronic funds transfer the customer could be able to transfer up to five lakhs to any bank 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 Page 17 of 85

service as this is one thing a customer would appreciate 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 banking industry can contact the customers with any updates or any new schemes or new plans by sending an sms to the customer's phone and customer can even get his monthly account statement to his email within seconds. Centralized banking core is a terminology used to describe a process, which is provided, by a group of bank with is in network with each other. Here the customer can access his funds from any of the branch, which is a member of the network banking. They can deposit or withdraw or any other information that they need they can get it. This kind of banking has become in almost all the states and countries where the banks are under core with other banks. "Retail banking is typical mass market banking where individual customers use local branches of larger commercial banks. Services offered include savings and checking accounts, mortgages, personal loans, debit cards, credit cards and so" As the retail banks introduced new services for the customer and they have also made sure that what ever the customer asked for done. The customers in the initially stages had a notion that security would not be their when they are transacting through internet but the retail banking has made sure that the security of data would be at the top and every transaction that the customer would do would be in 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 which is provided to the customers is personalized when compared to the traditional banking the new technological were customer centric and can be accessed at any time and from any place. These things have changed the customer's psychology about banking and retail banking become even easier to the customers. Earlier the customer had to visit the branch for any queries. But now when check the usage of the ATM s increased to high extent, which is very remarkable because when in the olden days when Internet was nowhere in the picture and today when you look at the 10 times more the usage is seen. Page 18 of 85

This will describe the different types of new technologies or the electronic methods, which are using by the present banks. The retail banks should find and use these technological inventions for its distribution channels. Combining different technological innovations together to form an Electronic banking, here the Electronic banking is developed due to the electronic delivery channels hence the name is given as electronic banking. 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 know about the importance of working together. Now the banking industries have seen this service and this had evolved a new picture in their businesses as the world itself has seen the growth in the recent years in this new technology. The various forms of electronic delivery channels are explained. ATMs (Automated Teller Machines)(Rose 1999)the definition of an ATM is "an ATM combines a computer terminal, record-keeping system and cash vault in one unit, permitting the customers to enter the bank's book keeping system with a plastic card containing a Personal Identification Number (PIN) or by punching a special code number into the computer terminal linked to the bank's computerized records 24 hours a day". Once they get the access it starts to offer the services of the retail bank to its customers. These machines can be located outside the bank, in the malls, airports and in all the major locations in the city apart from their home branch. The main reason why the retail banks have introduced this service is for cash dispensing. But later on with the innovations in the information technology the ATMs have started to provide many other services like the funds transfer, bill payments, deposits, and mini statement. The retail banks have opted for this service from the ATMs because it had a competitive advantage when compared to other services. With the combination of both the services that is from the ATMs and the human tellers during the peak banking hours it gave more productivity. As it saves lot of time of the customer instead of standing in the queue in the bank they can directly withdraw the money from the ATM as they can utilize this time in doing something else. For the retail banks the ATMs have proven very cost efficient which gave high productivity in a less period of time when compared with the human tellers. On an Page 19 of 85

average a human teller can give service to about four thousand three hundred while compared with the transaction of the ATM it is six thousand four hundred and if the human tellers take a break in between still the service is continued by the ATMs during and after the banking hours.

2.1.1: Personal Computer-Banking: According to (Rose 1999)"PC-Banking is a service which allows the bank's customers to access information about their accounts via a proprietary network, usually with the help of proprietary software installed on their personal computer". If the consumer can easily access he can perform many functions, which are provided by the retail bank. As this will also increase an awareness and importance of computer literacy among the customers in turn it will increase the usage of personal computers. This will definitely support the growth of the PC banking service which will virtually connects the branch bank into the customer's house or the office. 12 available 24 hours a day and 7 days a week. This in turn would benefit the ATMs and the Telephone banking.

2.1.2: Telephone Banking: "Telephone banking (telephone banking) can be considered as a form of remote or virtual banking, which is essentially the delivery of branch financial services via telecommunication devices where the bank customers can perform retail banking transactions by dialing a touch-tone telephone or mobile communication unit, which is connected to an automated system of the bank by utilizing Automated Voice Response (AVR) technology" (Balachandher et al, 2001). Telebanking has many benefits for both the customers and to the banks according to Leow (1999). Mainly for 12 customers it can give improved easy methods to access which is enhanced and the time can also be saved. And according to the banks' perspective these services related to the telephone are substantially lower than any of their Page 20 of 85

branch services that are provided by the bank and it costs very less compared to all these. It is similar to the impact that the ATMs produce only exception is that it cannot dispense the cash like the ATMs. The telebanking delivers the conduit that gives service even after the bank office hours. It increases the continual productivity for the retail bank. The retail banks offer its services to the customers at their home or the offices so that it could avoid to go bank for any kind of need, so this method may save time and can also improve the productivity by providing greater convenience to the customers.

2.1.3: Internet Banking: According to Essinger (1999) the idea about Internet banking is to provide customers access to their bank accounts via a web site and to enable them to enact certain transactions on their account, given compliance with stringent security checks".According to the Federal Reserve Board of Chicago's Office of the Comptroller of the Currency (OCC) Internet Banking Handbook (2001), Internet Banking can be described as"the provision of traditional (banking) services over the internet. Internet banking offers more flexibility and convenience to its customers whom combined with a virtually absolute control over their banking. Servicedelivery gives the information to the customer about the new bank products and many more services also about the transactions that are being conducted by the retail banks. An alternative delivery channel for the retail banks is that it can reach the customers by PC-Banking and Telebanking, which will improve the productivity. Along with the improvements in the huge productivity it can also have an advantage that the distance hurdles and time are eliminated. The retail banking will continue its productivity with unexpected chances of banking to the customers. (Chorafas, 1988) Electronic Fund Transfer Process will be very useful to the customers that they can transfer money from their account into merchandise account for buying products at the purchasing place itself using online transaction which is called Electronic Funds Transfer at Point of Sale Page 21 of 85

(EETPoS). A Point of Sale will use the smart card like debit or credit card the funds can be transferred by activating the facility Electronic Fund Transfer Process (Chorafas, 1988). Due to the increase in the productivity of the bank has resulted in the use of EETPoS which helps the customer to pay for the purchasing during shopping by avoiding giving cash to them and also can be useful instead of using cheque or withdrawals for the shopping. This service can work even after the working hours of the banks, and hence the productivity increases for the banks during non-banking hours. This mainly saves the customer energy and precious time to go the banks or searching nearby branches to withdraw money or at least search for ATMs so this may lead to loss in the productivity of the banks.

2.1.4: Branch Networking: "Networking of branches is the inter- connecting and computerization of geographically scattered stand alone bank branches into one unified system in the form of a Wide Area Network (WAN) or Enterprise Network (EN) for creating and sharing of consolidated customer information or records. Thus there will be speed rate in the transactions in the inter-branch without the distance and time that are eliminated. So the productivity time period will also increase. Since there are more number of branches for a bank to serve its customers and under one bank there will huge labor working in the branches with a goal to improve the productivity in each and every branch. The customer should travel to near by branch and spend more time to do production activities. Are the customers of the bank today are they more satisfied and better served from their banks with the innovations or they are happy with old format that has a human approach to its services is the main question. The factors like

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availability of instant help, availability of service after the office hours, convenience, accuracy and reliability, low cost for the usage are important for the bank customers. Customer satisfaction is Result- Expectations" (Anderson and Roland, 1997). To measure the customer satisfaction the tools are categorized into three levels of satisfaction, which based on the model of three levels of satisfaction by (Kano) 1. Desired quality tools surveys on customer satisfaction which is only way to know about the customers where as the perceptual surveys have the views of the competitor's customers. 2. Expected quality tools talks 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 bankers are divided into three categories as stated by (Fisher, 1998) 1. Transparent Customer and customer technology shows the core of the operations in a bank. This is the technology, which the customer only expects. If the customer is satisfied and the technology reaches their expectation then they will remain calm, otherwise the consumer would contact the bank quickly to give his feedback on this or gives complain. The main example would be if there were no facilities to see the account transactions in statement, the customers will expect from the banks even though the technology and the bank process are transparent. For example let us see the problem of the statement was delayed by a technical reason the customer would feel angry that the normal standard of service as expected has not been met. 2. Customer Independent is a technology which would involve the customer's conduction and the transactions which are completed with in the bank is mainly independent of any human contact with the bank like the internet banking, phone banking and the ATM's which would not require any assistance. Page 23 of 85

3. The bank employee will assist a customer and he uses the customer technology to finish the transactions like the customer service in the call center would use the customer relationship management to under the file where the customer details are stored in the customer profile and then the customers are contacted and enquire on their banking transaction problems and also provide the billing up to date. According to Spiggle and Sewell (1987) the model for motivation for the bank selection is used to show as an example for the customer satisfaction. The retail bank can be attributed according to Spiggle and Sewell's model into three types 1. Locations for the retail outlets are at variable distances and travel time and assortment. 2. Consumer psychological sates like the perceptions, attitudes, attribute weights and image are directly viewed as the preferences and shaping choice of patronage. 3. The characteristics of the consumer like the lifestyles and demographic characteristics. This model of motivation was applied for the qualitative analysis in the questionnaires for the survey and to study the selection reasons to the mode of services given by the bank 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 retail banking industry, According to Cole and Wayland (1997). Considering the customer's knowledge and customer's connection with technology and taking them as the basic needs for the customers connection strategy. It shows the new technologies found and are used to make the online connections for customers such as ATMs, self-service systems, Internetand the call center for the customer care system. According to these systems the technologies are increasing the capability of the strategic supporting changes through the Page 24 of 85

improvements in the strength of customer 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 know whether the customer connection technology will be useful to satisfy maximum in the customer of retail banking and also increasing promoting collaboration of the potential customer base and the interdependency, which was mentioned by Cole and Wayland. From the results it is showing that customer connection technology always doesn't satisfy the customer maximum. Anyhow the customer connection technologies such as ATM will satisfy the customers in some cases when compared with other services like Internet banking and phone banking. According to Sloan management review: 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 because of the bank technological services, customer likings, or the attributes or the customer characteristics? There were many studies done by the marketing perspective to understand the customer's satisfaction but psychological explanations of these kinds of behaviors are little explored. From this study we can seek the explanation in our research from the customer's perspective of his internal state. And the retail banks 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. From Met expectation method we will conclude that by reaching the customer expectation can lead to customer satisfaction. If we cross their expectations then can make customer delight. Always the expectation levels will be an increasing one and dynamic. The personal expectations are more than the personal status, which are always tough to estimate. The Needs Based Model will be helpful to satisfy the customer in three aspects of the customer such as security, justice and selfesteem. This model will explain that the needs are focused on the customers physiological behavior and to reach their expectations will concentrate on attribute but not on the customer.

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2.1.5: The Downsizing of Banks There are many factors, which influence the banks in downsizing. As financial service sectors prefer to globalize the business from the national level to international, there has been huge competition in the international financial services of customer awareness, availability and information. There are many levels in the banking structure like other industries have. But it is very difficult to face this never-ending competitive market. The higher levels of management will interact with the primary line managers with the help of availability of the technological information. This is also useful while horizontal information transfer among the departments. (Jacques M., 12 June 1994,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 banks have been working on the small account holders prices, which are subsidized to get more profits. These are high value transactions with less volume to subsidies the low value transactions with large volumes. Since it is taken as a positive aspect but it may lead to negative effects on the ability of the banks to compete the market. Anyhow "Banks now increasingly accept that they must recover transaction costs from those customers that incur them" (Channon D., 1993, p146). The main reason for this step has been observed from the Customers service revenue matrix- if the losses are increasing by many of the customers- it is important that the services should increase to 20%, which may return large profits to the banks. The less revenue making customers should bare the transaction charges. There should be a strategic reason if those customers are not following it like the student accounts. This may affect the customers to do transactions with the bank or it may also decrease the revenues from the profit making customers and may have more burdens on them. This step will make to keep the large incentives to attract many of the profitable customers in Page 26 of 85

the market. However Economist Vilfredo Pareto (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 others". (Sloman J, 1994, p.400) the main advice, which is given here, is that to get more profits the banking elements within it should not affect the other factors for subsidy. This pricing method has been seen in the First Chicago Bank. This policy was adopted by the City bank to some group of retail customers it attracted some customers and removed some use less customers. "As a consequence, because the bank was able to offer a superior service to its better customers . . .. It actually doubled its share of the New York retail market."(Channon D., 1993, p.147) If there are savings in the price drivers that cannot be transferred to the pricing policy, by this nearly 80% of no profit making customers can be attracted. The savings made should be used in decreasing the prices and use these small accounts in returns of revenue or to attract new profit making customers. From the study made in the year 1995-96 reveals that there may be chances to decrease the interest rate for the medium and low access accounts when compared to the long period accounts. Even though the interbank rate is falling the interest given to the 90 day larger and medium balance maintaining accounts are increasing gradually. The Deposit accounts will show large positive correlation in the instant access accounts than the 90-day accounts only few of the higher levels are interested but not all. The basic proposal which can be seen here is that the lower level accounts should process simply with the market but the large order accounts are effectively given more importance by the banks itself. This leads to the argument that why the move away occurs in the effort banking. Short period low balance accounts are not given higher importance by most the banks which are cost intensive. This problem can be overcome by showing interest on the cost drivers by making these accounts in the operation automation process. It has observed that new technologically useful banking can be provided like ATMs instead of concentrating on cost intensives this facilities are useful. Page 27 of 85

2.1.7: The move away from the Branch Network Basically the whole bank operations, trainings, personnel and lending are completely depends on the bank branch manager (Smith S., Wield D., 1994, p.98) "in theory promotion was open to anyone The relationship between Interbank rates, deposits and mortgagerates, who could demonstrate the necessary 'aptitude' and 'dedication'" From the past few years maximum banks are not following the need to facilitate special services to the corporate and personnel customers by the normal bankers. It has observed that the branch managers are feeling more difficult to provide such special services to their high revenue making clients. The branch manager should follow as below: Increasing non-banking services for salesman. Branch administration head decisions. The central point of reference for personal banking. It is also planning to perform significant method of working a corporate banking function. One more important point is there that it does not have the suitable decision making in lending the larger and medium balance accounts. It has considered as just 'errand boy' to send a short message. Anyhow the main thing to be remembered is that the branch manager does not have the advantages in both training and experience since it may be the treated personal thinking. But anyhow it has been advised that the managers are "lacking in some aspects of credit evaluation" (Channon D., 1993, p.210). As the competition in the market has been increasing it has become difficult to know in which bank to access. Many of them are moving to the Accounts Officer System from the past few years. Even though it is covering the customer needs effectively but it has some disadvantages in its own bank. Basically account officer is well trained only in loans and has adequate knowledge in the non-loan products. Due to this low knowledge on other products is leading to neglect the other services development needed for the accounts. These Account Officer are found very expensive in many of the cases. Hence the branch Page 28 of 85

manager can be able operate all kind of works with good knowledge to run maximum accounts. To recover its costs good penetration and an high volume of profitable business are important" (ibid. p.212). Hence the account services of this kind can be able to provide only for the large and middle size accounts. Many of the UK banks have moved towards the American Hub and Satellite system from the branch system. Thus the services offered are splitting into departmentalized and functional elements. Due to this the labor has been made into segment wise. 2.1.8: Hub and Satellite Banking 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 training managers are needed. The processing of data can be possible in the same Hub building or in a different data processing area (DP). The word processing and standing order clerks are generally centralized. This DP and Hub will support a satellite network or offer many limited services to the personal customer in the branches. "Many satellite branches have no managers"(Smith S., Wield. D., 1994, 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 horizontally and vertically integrated (ibid). This limited the opportunities in career development for the labour. The main reason for this situation is that the traditional hierarchy has been removed and replaced with the insular levels, which will not move constantly. Hub will also serve the corporate branch but it does not offer any special services to the business customers like by answering solely. It has been observed in some cases that the banks are having limited savings and in some cases it found 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 are in need for bank processing (ibid. p.103). As the flexibility has decreased and hence there has been decrease in the productivity. In the higher stages of specializations may be reason in increase of the staff costs. Let us see one example that in 1994-1995 Barclays bank has removed 3400 or -3.7% of staff. In this mean time the staff prices are raised quickly from 2607 to 2728 Page 29 of 85

million pounds or 4.6% of increase. The clerical staff costs are raised to 2.75% (Bifu). Hub and satellite banking elements are communicated with each other by relief staff cover, information system (electronic or paper) and managing teams to look over the network. There is a need to increase the relief staff cover since there is a specialization in the bank process. It can be seen that the banking system is intending to include Tyalorist theory in their methodology. There is necessity to see the inputs like the Ford plants, which are not proof of banking network. It also says that: While new technology, business process re-engineering and the total quality movement may have created more efficient companies, . . . .Efficiency should not be confused with competitiveness. Competitiveness, . . . .relies on innovation, and innovation relies on people (Donkin R., 1995b, London page 12) If the banks are not able to become competitive advantage in the market it may lead to non productivity. If the banks are not maintaining the flexibility and the organization slack goes to zero position then it may effect that it cannot be able to change to medium term from short term. It means that if there any severe crisis occurs then there will be no specialists and man power to clear the problems. So it is advised to always look underlying cause for any kind of change. 2.1.9: Security and accessibility The bank amount can be returned back by the Internet users may be not sufficient. There are many problems with the customers to use Internet banking since they feel difficult to access to connect. It can notice that the problems raised in network policing cannot be financial institution controlling or ownership of specific institution/individual. The main aspect to be seen is security many of the banks are facing huge threat from computer hackings. Recent events-notably one young Russian hackers penetration of Citibanks own computer system-show that banks find it hard enough to keep their proprietary networks secure( The Economist, 1995b, p.123) Page 30 of 85

The security for open Internet system is highly risky factors for the banking system. If any worse thing happen like hacking then the Internet banking will make the customers to lose confidence. To overcome this problem many of the bankers are using encryption of the data. Anyhow encrypting the data many not provide security 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 analysis 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 branches (Garrett B, 1997, p22). To improve the reliability the data is decentralized into network. Anyhow the survey report says that 54% has lost the data. The main goal of the management security is not only to protect from the viruses and hackers but also it should make it clear and approximate. The authorized people only should access the data in a practical and useful way. It is necessary to satisfy both the managerial and customers requirements in security.

2.1.10: Consumers & EFT This explains that there is tremendous increase in use of electronic devices like plastic cards and ATMs. From the American Bankers Association many of the customers are not interested to take the pre-authorized credit transfer methods like paying the wages and showing reluctance if preauthorized debits are taken like paying bills. Both are proportional to each other as income increases gradually whereas there is decrease in payments for the goods and services. It is advised that the customers are not readily take up convenience without any limitations and will react by taking economic worth

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rationality (King R., 1995, p43). The new technological innovations and ATMs are providing very easy way of banking to the customers. It will not say that the old systems are not useful or insufficient and are in final stage. This new innovations will make the both customers and banks to access easily and also to hold up data effectively. But The more complex the architecture of a computer system and its associated software the more likely it is to fail.(ibid., p.47) If any of the system fails then it will lead to a big problem as the customers will lose confidence on the bank flexibility and quality of network. If customers are satisfied and comfort with the technological methods like ATM then they will arrange some way banking available around them. In such cases if ATM network goes down then it tend to a big personal tragedy since they commit to payments. The previous methods of banking like manual cheque clearing and accounting are having more chances of errors than the today ATMs. Any of wrong deposit has occurred then they can be observed before all debits are posted. The modern banking system is very much flexible that clearing of cheques can be done automatically and 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 before it is noticed. (ibid.) If this situation is considered as an extreme one then it may lead to credit blackout anyhow it is not suggested but it can be done.

2.1.11: Does technology give banks a competitive advantage? To become competitive advantage it needs to develop a suitable, different, unique and impossible to copy. So technology will not answer this question. sustainability. . . . demands . . . .that a firms competitive advantage resists erosion by competitor behavior or industry evolution(Porter M., 1985, p20)

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M. Porter advised that to decide whether technological change will become competitive advantage can be done by adopting some criteria: If technology is increasing then the bank products will become unique hence many shares can be expected in the new market by keeping remaining things constant and as it has pioneering effect. The new technology should be made secure and protect from re-duplicating by others so that it can become sustainably advantageous. Even though if others can copy the technology the bank should use its competitive advantage and increase its traffic rate. . . . . Pioneering may lead to a variety of potential first-mover advantages in cost or differentiation 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 organisation or firm. These technological changes can be able to change the structure of the firm effectively or may become worst. By considering this point it is suggested that technological change that improves a firms competitive advantage may worsen structure as it is imitated. (ibid.). It became very evident in some cases like Nat Wests development case of Mondex and also for other firms like NatWest strategic alliance and Tesco. Many banking services like cash handling when emergency to clear the cheque, traveller cheques are being strategically ready to replace with new elements by the Mondex. Hence by adopting new technological changes may lead to worst consequences in the industry. So if any new technological changes are willing to implement then it is suggested to introduce it in the organizational level and the strategic effects are to be observed with the new changes. This method was found to be used very seldom in many of the cases. However there is necessity to notice the threats from the new entries in banking like building societies are considered as the direct competitors. This will lead to heavy stress in developing new technological strategic changes. Page 33 of 85

2.1.12: Mondex Function Even though the credit cards, cheques and debit cards has been introduced they cannot be replace by paper money. The new changes have not dominated the Global requirement as primary payment is by cash. If the payment systems are done with cash then it will give satisfaction and confidence in banking system. Mondex functions will match with the cash that is transferred widely; even though it performs 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 card works using a reading electronic device. The main will allow transferring money to any part of the world only by monetary computer or telephone basis. Mondex is different from other bank system cards since they can make only individual card transactions as they have data base method. This reveals that the Supporting the infrastructure required for such a process means marginal cost per transaction for such initiatives is always likely to be uneconomic for the lowest value transactions, leading to their exclusion or substantial cross-subsidization (Jones T., 1996). Anyhow Mondex has planned a new method is to transfer the money without any third party to overcome the above problem. But there are some connections with the banks in certain levels of processing in the Mondex system of functioning. Anyhow the level of connection with the banks depends on the type of transactions doing. Individual transactions are done directly using the Customer Wallet transactions. Now if the transactions are between the retailer and customer then the transferring will not be done directly using banking system, but the process will continue periodically transferred to the bank through the telephone network from the retailer terminal Point of Scale (POS). James Essinger wrote about Mondex in his book as Electronic Payment Systems -Winning New Customers (1992), have a huge impact on the entire retail and financial services business (Bifu 1994, p 7). By using the Mondex secured system of money transfer using telephones has reduced the difficulty and risk of counting and transporting Page 34 of 85

of cash. Hence this will decrease the employees of the cashier and security in the financial and banking systems. Mondex provides a facility that the foreign currency can be transferrable into five currencies simultaneously in the global level using the telephone network systems. Thus the increased use of Mondex will reduce the travellers cheques and also the Bankers Union can transfer the cash to foreign countries without using the banking process (ibid.). Thus by using the Mondex method will increase the home banking process. This electronic method of transferring and payments will make to decrease in jobs of cashier and cheque clearance in the banks due to less use of paper in the banking process. One thing should be notice that this Mondex is eroding the Banking system slowly. Anyhow this statement was refused in a telephone call made by Nina Humphries to Mondex international. She advised that the banking process still continue and the communication can be seen in the banks and cards. But she cannot 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 check balance, deposit, transfer cash from or to other individual cards and withdraw money (Mondex, 1994, pp.10-2). Hence by using the terminal interconnection of the banking network the employers are able to pay there employees with charging 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 workers embossing on the cards. The question here arises is that will the people are ready to pay for this technology since we have free system of payment as direct cash exchange of cash. Apart 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 Units 10,000 700 Page 35 of 85

Payphones Screen phones ATM's adapted for Mondex Car parks Buses [Based on information supplied by MONDEX]

200 2,000 20 6 80

Nat West and Midland are estimating that Mondex will replace these 20% cash transaction in UK within 20-30 years (Bifu, 1994, p.8). This also advises that the effect of Mondex on the employment levels and banking system may not estimated up to 20 years. In the mean while the banking system will completely become worst in the market and lead to disfunctionality. It will also show greater impact on the basic functions of the banking. Hence Nat West and Midland are planning to introduce new technological offers to the customers to become competitive advantage in the market by smart card offer. Apart from the banks other financial systems are trying to innovative new payment system like providing electronic smart cards to do payments. Due to these new methods of payments, increasing competition the employment levels are decreasing it has effecting completely in the banking industry. . . . . History and experience shows that when profits are under threat,
TOO.(ibid.

WORKERS ARE

,p.9)

Experts are advising that the market share will fall tremendously in the credit card market position as explained in Competition between Store and Bank credit cards, page 31. There are chances to become success in this new market. Anyhow if they are not successful in electronic cash market system then have bare penalty from the banking and retail banking system. It tells that the bank is dealing with huge investments and risks. It not only deals with the banking process to be successful in the market with competitive

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advantageous methods but also to remain in the market even if there are any kind of changes occur in the bank market environment. 2.1.13: The Needs Based Model Justice in the Needs Based Model means the basic need to fulfill and then judging depending on the fairness in the procedures and rules. Except the Human Tellers compared to the information technological innovations tends to treat the consumer gently. Whereas to treat the illiterates, less educates and aged people will be hard and to handle such people may be tough because they feel they are treated unfairly, and they stops using the Human teller services and starts using the latest information technologies like internet banking and online services. Self Esteem means to feel self worth and may capable in handling the situations. All the customers will expect to treat them as a special customer like if any customer has to stand in a queue for longer time to do any transactions or like if they dont know how to operate ATMs then they may feel inferior and not in a state to control the situation and will behave odd. "Security" means the need to feel unthreatened by any economic or physical harm. This would explain why the accuracy and reliability are given second rank and it is an important service method in this report. The customers may feel unsatisfied if the security need is avoided in the banking process. Thus because of non secure reasons especially in the phone banking and internet banking lead them to rank lower when compared to the levels of satisfaction. From our survey we can see that both of them given a very low rank in reliability and accuracy. The Expectation model failed to elaborate the reason why the customers are not accepting these information technological inventions such as phone banking and Internet banking and it also failed to explain about the customer satisfaction analyzing. But the Needs Based Model could explain the affect of information technological innovations from the customer behavior. The Needs Based Model is useful only to explain about the customers satisfaction and it cannot able explain the many other factors such as convenience and bank services provided in other than banking hours, Page 37 of 85

but by merging these two factors may help to explain the understanding the customer. The most important outcome for the marketing activity is customer satisfaction (Surprenant Churchhill, 1982, Oliver 1980, Mick and Fournier 1999 and Spreng et al 1996). For the competitive retail banking industry the customer satisfaction is considered as the main essence for its success. According to Kanji's customer satisfaction model we can recognize the loyalty of the customer through his level of satisfaction and this model allows the retail banks to analyze their customer satisfaction levels when they change or introduce any new innovation of the information technology. For retail banks why the loyalty of the customers matters is because it is compelling and clear as it leads to more profitable growth for the bank. The main reason is that the loyal customers would stay longer with the retail bank if they are treated well. As they will be the ones who recommend this to their family members, friends and colleagues which is the new business plan for the getting new customers for the banks. It is a difficult task to maintain the loyalty of the customers as there would be many things that matter like the data, efforts and the insights that are needed to achieve the loyalty of the customers and to make them stay for a longer time. The main things that are required to get the loyalty of the customers in an effective manner are the first and foremost one is it should be able to categorize the customers individually by their intensity of their loyalty. And the second on is to find the root cause of the customer's loyalty so that they can specifically introduce the service according to their requirements. And the third one is that it should be grounded according to the customers economics so that the bank would be able to calculate the lifetime value of the loyal customer what can they do to get the same loyalty from their other customers. And finally it should maintain the commitment between the customers and the staff or to the services that they provide and what best they can do more in the future to increase the loyalty of their customers.

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What are the important issues which will make the customer to loyal to their interested bank is they are expecting accuracy and efficiency from the services that they get from the bank. They can easily shift to other banks or never use the service again if they don't see these in the services. As the bank can quickly replace a lost card or provide the pin for the card or transferring money at the time of emergency would make the customer be loyal to their bank for a lifetime. As many leading banks think that by winning the customer's loyalty and advocacy is the main step which is more important than just getting the satisfaction of the customer. To get a satisfactory experience to the customer the retail bank requires mainly focusing on the basic requirements of the customer and solving the problems that are expected in a quicker manner. To merit the customer's loyalty it requires much more detailed working on the expectations of the customers. But delivering just the basic needs or expectations of the customer consistently with reliable service is only a start to get the loyalty of the customer the retail banks have to give beyond the ordinary service to reap the confidence and loyalty of their customers. Kano's model of customer satisfaction model: Accords to Kano explains that by blinding fulfilling the customers requirement has a great risk as the retail bank are not aware of it. There are different types of customers and their requirements are different. Without the measurement and understanding the retail banks would not be able to provide good customer satisfaction. By providing the superfluous quality and concentrate on what says the customers and what not to think is the only one area which would in turn drive to their competitors. The present model would help the retail banks to concentrate on more than two methods, and also there are three types of customer requirements.

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Source: http://www.gopal-kanji.com/ksci.html

The important and first and foremost dimension would discuss about the fulfillment of the need as this measures at what level the customer requirements are satisfied and it will be ranging from completely unfulfilled to completely fulfilled. Now the next dimension will explain about the customers subjective reaction to the first dimension. This dimension will focus mainly on the customers fulfillment and this will be ranging from un satisfaction to delight. As these methods will estimate the level of customer satisfaction and it is mainly helpful to know the satisfied level of the customer even though it may differ for various types of customer expectations. Many expectations are normal because they will not tell their requirements overly. These expectations are very normal and important to all the customers and may feel by saying " this requirement would be little silly. And even these requirements are not reached, then also the customers will not think about it and dont think of complaining and will neglect later. The customers will think of complaining only if they feel those services are not at all provided. By improving these requirements the customers may not be delighted. And it may even say as the fundamental quality. The customer would complain if the basic Page 40 of 85

needs are not provided and if they meet these needs then they will satisfy, if they are not met then they are dissatisfied. From these many needs there is a possibility to reach higher than the customer expectations so that they can perceive an additional advantage called delightful:. If the retail banks can understand their customer's unknown wants or needs and fulfill them then the customer would be delighted but if the bank doesn't do it also they will not have in harm because the customer is not aware of it so there is no way he would feel bad about it.

Source: and-tools/

http://www.processexcellencenetwork.com/methodologies-statistical-analysis-

One major thing that makes the banking industry more in demand is providing the consumer what they ask for. Are they able to recognize the needs of their customer and on that basis are they able to stand before the aggressive competition? Beating the other industries in low margins and upcoming technologies is the herculean task. CRM is the system which gives half way to complicated confusing banking issues. Technology is more important than any business requirement for the running of CRM development. CRM solution committed to banking industry in which there whole sole is to support all Page 41 of 85

main business processes. The banks are the one who follows the latest technology as per the business requirement. These shows the financial Industry always participate actively. There are some new challenges which seem to take part in the existing one. Banks should focus on the consumers needs and desires and deliver according to the. Banks has to invent some new techniques to reach the target customers and provide the services which they are looking for. The product should be as per the consumer needs and cost efficient. As per today's economic scenarios bank have to give the reason for any technological investment. It is necessary that CRM should reach to the quantifiable return on investment. Economic globalization increases competition and it makes the environment of stagnant changes. With this making and keeping the consumer has never been so necessary. Currently the latest ways to performing the business activities have changed the new picture of market. Customer can now enjoy the different varieties of product and services which was not available before. As a result of this they became choosier and financial institution needs to state-of-the-art CRM systems to cope with this environment. Banks are now providing value added services as financial products becomes commodity

2. 2 :positive aspects of crm in banking sector

2.2.1 Improving customer satisfaction: Now the customer is more aware of the products and the additional benefits. They look if the banks operations are providing the services as per their needs. They will take their hands back if they found the product is not up to the mark. Not only this they shows their disinterest if they will find the same quality low price somewhere else. Financial Industry should learn to handle the vast consumer relationship life cycle. Making the every business interaction as a highly cordial and meaningful one can make the customers to purchase more. Highly interactive transactions make the customer feel friendly and comfortable. This makes the customer to do some additional purchases. It is

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like constantly strengthen the value of their working not only to the consumers but to the business partners as well. Not only this they must make sure that the processes should be easy, appropriate and at low cost to continue the business with them. There is a big chance of losing the consumer when the request is not fulfilled within the time span. So the financial institution should react so quickly to fulfill the request as soon as possible. If the time period between the customer request and its fulfillment decreases the chances of losing them will be less. This is the system which should record each detail of the customer. It should manage the full-personalizedinformation which is accumulated from continuous customer interactions. This customer Information is highly effective in making of marketing strategies and day-to-day sales. Ultimately these strategies are useful to handle the various challenges. Rough targeted marketing and financial institution can increase the value and recognition of the brand. At the time of raising the brand value before the upcoming competition bank must take the advantage of power of their brands.

Advantages of good branding: It increases the market share of the various services which allure the consumer attention. With good brand name the level of keeping more price goes increases as customers faith is strong on the product. Other characteristics also an addition advantage to the product who has brand name the new product can easily be launched and tested in the market because of the goodwill of the brand.

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2.2.2: Enhancing profitability: This will not be satisfactory to provide the consumer with the desired product. If any financial institution intends to stand before the competition it should concentrate on the profitability. Financial institution should find the more profitable fields. They should invent the different methods to sell the product across more efficiently. It is easy to have the big share of the market as high product acuteness is there. Additionally the selling of more goods makes the profits go high. With the close relationship of the buyer-seller profitability rises. When profitability of any organisation increases share in the market will be more. To make some decisions in sales, marketing and services banks needs business intelligence. Banks should include the high technologies to make the work faster. This helps to fragment the data quickly and overcome the technological hurdles. Different data of customers are saved at many places. This data can be accessible with some ways. With the variations in the industry build or with any merger and acquisition the information can also be distributed to less administrative area. Moreover with an less informative data, it is highly difficult to gather all the information of household for the marketing strategist and sales representatives. A well-managed CRM solution that works with different applications can initiate the compilation and analysis of data. This system is operated with lot of business partners and suppliers which facilitate the data compilation that strengthen financial institution sales force.

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2.2.3: Operational excellence: All the banks must brings together its sales and services. It should use the various channels which facilitates the portals for the consumers and workers. From direct meeting to indirect online meeting, they should available on each possible ways of interaction. A highly efficient CRM solution should work with all the modes of communications. It includes fax, email, online portals, wireless device and interaction with bank employees. This gives a interaction between touch points to an work bay and linked the work bay to the all the business partners. This service enables the bank personnel on any consumer's important events. These should be ready to take appropriate actions. Each personnel are having the proper knowledge and skills to achieve the desired goals of the organization. They have all skill sets to deliver with high quality. What is relationship of the customer with the industry? The effective CRM system should be able to analyze this. It should provide the data to see the consumer stability in the relationship.

2.2.4: 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 professional. Industry can design better-personalized services if the data of the consumer is updated. Quick action to any issues faced by them. 2.2.5.: benefits to the employees They will get enough time to focus on the customer demands and orders. All the personnel are strengthening with the idea to provide the good quality services and to fulfill the orders as they have asked for. Rate of satisfaction will be high. The top-level personnel are strengthen with the data which is effective in building customer relationship and make the making quick.

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2.2.6: benefits for banks There will be an ideal utilization of the resources. The individualized services provide the consumer faith and level of satisfaction. There will be better consumer acquirement, hold and sale across. The goodwill of the industry should get improved in the consumers' minds.

2.3: CRM challenges

Though CRM is the complete package which contains all the strategies of making profits but still there are some loopholes. One of the main issues which CRM system is facing is to not meeting the expectation of reducing the consumer retention. This is the reason for the CRM downfall. What is CRM failure? What is the reason 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 characteristics. There are many industrieswho give it a definition of business strategies and others tells it is pertaining to technology. There is very less percentage 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 installing CRM. Most of the project fails to get the desired results due to the various issues exists in the CRM. However the exact the rating if failure is just 5%. Mainly the big industries are failed. Medium size organization has a high rate of success. 2.3.1: Exorbitant Costs CRM requires the large investment to manage its customer database. This huge investment considers being a big problem. There are some other expenses also like maintenance 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 leaves the CRM user with bad experience. This is what we call a CRM success and ultimately CRM failure. Page 46 of 85

2.3.2: Inadequate Focus On Objectives The second thing which needs to be taken in the mind is that the aims and objectives should be clear. Whole management and employees should be well aware of these objectives, so that they can work 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 its focus on the goals, which ultimately vanishes. Sometimes goals gets changed and lost their value. In that time companies taken towards goals which are important and ignores the one which are of less importance. This is the main issue which is faced by many companies while using CRM. 2.3.3: Insufficient Resources In case the situation goes bad to worse in the organization, the industry start reducing their budgets for the running phase. When there are no funds then some important costs needed for the CRM success will not be taken. This is also the one of the reasons for CRM failure in between. The main thing is that stability is completely lost. The industries are failed to utilize the important resources which are needed for get achieve the goals are then resulted in failures. 2.3.4: Inappropriate Metrics Every industry is inefficient to get the benefit out of right metrics. The root cause for the fiasco of CRM is to inefficiency to make the right decision of selecting the method of measuring. There are various methods which are being used for measuring the goals. Industries are patient enough to take right decision about which metrics is actually needed for different purpose. But after the big research also they are failed to choose the right decision. Consequently they are unable to get the desired measurements and realized the CRM inefficiency.

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2.3.5: Complex Systems Is the CRM is the simple one? What hypothesis says? Is this actually the case? Various industries that are using it are having the various notions. They have noticed the complications of CRM systems which are completely vague. If the situation will continue like this how the normal employee would be able to cope? The solution is effective training should be given in a proper manner so that they able to handle the complexities not with much difficulty.

2.3.6: Business Needs Are Most Important A major mistake that a company makes is to let the technology controls the CRM systems. Now all the companies are putting their efforts to solve these issues by visiting the company leaders, gaining the technological requirements and then use this for the different issues. This is not the proper solution to the problem. Rather they must try to recognize their business issues and then try to see the suitable solutions.

2.3.7: No Customer Focus Is a CRM played the part in customer related strategy? The answer is yes it is. This is the way that it should go; it needs different endeavor on the organizational part. This has to boost the employeesself-motivation and needs to be based on consumer. This takes the huge effort of the organization. The issue of CRM comes up because of the unwillingness of the personnel to focus more on consumer. Consequently expenses on implementation and updating go high. There is lots of consumer strategy which are being followed by the organization to attain the customer loyalty. With disinclination of employees who are doing the implementation.

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2.3.8: Slow Returns Other big reason for the fiasco of the CRM is its inefficiency to provide the return on investment. Industries have to wait for long to recognize the real return on investments. It takes lot of time for industries to find any return on investments. This is the main problem with the CRM. Organization unable to recognize it at early stage and its like the test of their patience. They find it quite difficult for waiting for so long. Most of the issues with CRM can be have the solutions which finally went. More focus is the indispensable thing. Select the proper CRM systems that provide the desired results. Right person on the right job should be employed with right measurements. Following these methods can take long period to resolve the existing problem in the CRM systems.

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3. Chapter

3.1: Research Methodology

To gather the information the survey method should be used. To show the impact of information technology on the customers of retail banking industry, checking all the information that they have collected does Data analysis used. Surveys or questionnaires should be prepared to check if the customers are satisfied by the services provided by them. Also take a survey of the banking officials for ideas or changing for the betterment of the retail banking industry. Also checking the current trends of the market and if they needed have to do a research on this method and work on it. This is a simple but a more concise data to show how the impact of information technology has helped the retail banking industry change for better development while also keeping in mind the requirements and queries of the customers and getting it resolved by opting for this implementation of technology. A survey should be done among the bank employees to check if the customer was able to adapt to the new technology or were they happy with the old system the personalized banking. The main the reason was the customers trust factor when they do the transaction online they always think about the site which they use is save or not. Questionnaires should be given to customers to check if they are satisfied with services provided by the retail bank and how easily could they adapt to 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 qualitative 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. Page 50 of 85

3.2.1: Quantitative Research: Questionnaires are given to the customers to check their views on the new implementations in the retails bank. How the information technology has changed their view about retail banking the services which were introduced to them did they like them. This analysis helps to assess the loyalty and satisfaction of the customers and shows the reasons behind their levels of satisfaction. Here basically it shows the reasons behind their loyalty and theirs levels of satisfaction in using the new technologies introduced by the bank.

3.2.2: Qualitative Research: This research is mainly based on the interviews which have been conducted to understand the loyalty and satisfaction of the customer in a better way. The method in which the interview was conducted was they had a questionnaire that would ask few basic questions and rating them when they were asked 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 retail banking industry what affects the information technology on the customers satisfaction. a survey was conducted on the people based on the questionnaire taken from Hills (1996) customer satisfaction measurements book. This required information is adopted from Woodruff, Donnelly (1992), Oliver (1997), Cardinal (1999), Johnson (1998) and other available literature in the libraries and from Internet. By dividing various types of customers into groups based on educational level and age and conducted questionnaire. This survey will mainly focus on the customer satisfaction Page 51 of 85

and their opinions in the retail banking services offered from the following methods: Internet banking, phone banking, ATMs, Bank Tellers.

3.2.3: The satisfied measurements: The main use of this survey is to see the customers valuable feedback on the services provided by the retail bankers and comparing them with satisfied level. The services are offered to the customers by the retail bankers by utilizing the old culture of service rather than the new information technology innovations services provided to the customers. In the questionnaire there are 10 issues where the retail customers will find when they use the services provided by the retail banks. The customers are requested to rate the issues which of them were relevant to them or not which were provided by the banks human tellers against the automatic teller machines, call center to internet banking and phone banking. And the data which is detailed shows the importance of the criteria which is used by the customers to measure their satisfied degrees while they are using the facilities of the retail banks, and the association of the questions is seen in the given example: if the consumers rates the availability of a wide range of innovative services and high tech services which is an important issue from all of them in order to select a bank and they also accept that the internet banking is the high tech and innovative services, hence from the survey we can conclude that the customers are satisfied by using the internet banking facility. This interviewing process is held only on the randomly selected sample of people, the maximum interviews will held in the railway stations, premises of banks and shopping centers. If the customers are above the age of 18 can easily access the retail banking and can do transacting with the banks are eligible for this. The questionnaires are mainly filled in from the information which has been collected from the customers which will reduce the problems of inappropriate reason from the banks and reply from complaints. Some of this was answered through emails. Before plunge into the survey, there were interviews that were conducted on 10 participants from different educational levels of different age groups to gather the Page 52 of 85

feedback on the questionnaires on a trial bases. The main report findings and other factors and its effects are explained here. Do the bank customers using the bank tellers and using how frequently these facilities rather than Internet banking, ATMs, phone banking and other services? Which are the customers banking habits? From this survey report we can find how often these ATMs are used in India and UK. Now the second goes to the Human teller's service which is provided by the retail bank in both the countries. When the analysis made on the varying people in age groups and educational levels in both the countries are as follows: (see table 1).

3.2.4: Banking Habit by Education degrees: The usage of the banking services will differ from many groups of people like educational levels and age of the retail bank customers. In both the countries maximum educated group people prefer to use human tellers. When it comes to the age factor there are chances of using the information technological innovations which may be ATMs for aged people rather than to use human teller services (see table 2). But 45-55 group customers will prefer to use the human operator services provided by the retail banks rather than using the technology innovations like ATMs? 1. Which facility provided by the retail banking is more satisfied the customers or which mode of service is used frequently? 2. Do the customers of the retail banks are satisfied more with the human tellers which is provided by the retail banks or the technology innovations including Internet banking, phone banking or ATM machines satisfy the customer maximum? Normally in the services provided from the retail banks are the " automatic teller machine", "human tellers/ operators", " phone banking without operator assistance", phone banking with the operator assistance" and" internet banking" in India and UK, and Page 53 of 85

this will explain that the more satisfied services provided to the customers are by the ATM machines. The most important service dimension which is liked 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 given to them only in the office hours. Similarly the Internet banking and phone banking is serviced equal to the ATMs after office hours it is available.

3.2.5: The choice of Bank Transaction: The choice of the bank tellers is utilized more to make Bank transactions in India such as to apply for any loan or to take the bank statements and paying the bills.

TABLE 1 Results from Survey (Question 6) Human Banking ATM Phone Internet Banking

India App of Loan 92/100 Update a/c 96/100 Bill Payment 99/100

11/100 82/100 83/100

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

42/100 65/100 79/100

UK App of loan 86/100 15/100 18/100 Update a/c 83/100 94/100 78/100 Bill payment 43/100 93/100 36/100

71/100

However in UK the maximum bank customers will choose the ATM facility more over the bank operator services.

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Which mode of service is least satisfied? In UK the bank customers are not satisfied with the services provided by the retail banks like phone banking few times it goes for the Internet service also. However in comparison to UK the Internet banking is low in India. Which dimension of service is perceived as important? We have listed in ten criteria in the questionnaire that customers will think about it only after using the bank 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 banking services minimum taking time. e. Ease of use f. Minimal processing or transaction time by a machine or a teller. g. High tech innovative services offered. h. No extra cost. i. Instant help or assistance j. Reliable accurate services. According to the results of the survey the two countries retail customers are ranked as "convenience convenient location" will be the best bank service offered. Each and every customer who took the survey in both the countries have chosen "reliable accurate services" as the second best bank service as the second best bank service. And may think about the facility of high tech services offered, the report shows that the high tech innovative services offered is ranked least and given low importance. Do the technological services provide by the retail bankers such as ATMs, Internet banking and phone banking are given importance? The technology innovations are ranked bit lower importance and still more than 80% of the survey customers of two countries are showing Page 55 of 85

interest to prefer these technological services rather than bank tellers or (operators). And above 90% of customers prefer for new banking services with the technology innovations. TABLE 2 Survey Question 8 - Overall, do you prefer interacting with the Banking technological services over human tellers? Findings INDIA YES 132 No 18 88% 81% 81 19 UK

TABLE 3 Survey Question 10 - Do you look forward to more technological Innovative banking services? Findings INDIA Yes No 134 16 85 15 UK 85% 86%

Do customers perceive cost? Bank customers in India and UK perceive extra cost that is associated with the services provided differently in the bank. The survey customers ranked extra cost as important as reliable accurate services Why the bank customers preferring the Human teller or operator? When the banking customers are using the bank services like human operator can have an advantage of any kind of help on the spot itself and also have better service. Page 56 of 85

Why the Internet and phone banking do not prefer more? The bank customers dont feel comfort with these phone and Internet banking facilities and they also feel that by using internet or phone banking the time may not consumed reduced. They does not even access these online banking facilities easily they feel that they are not reliable and convenient as human tellers and ATMs provide.

3.3: Secondary Research Analysis:

This secondary research analysis report will explain about the facts of how to develop the literature review structure and analysis framework. The sources for this 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 like the interviews, opinions and from the surveys. This combination of information has basically helped to develop the literature review in an effective manner. 3.3.2: Related Books: The literature review was basically dependent on the books. These books show the theoretical aspects for the research which has been takes from these books written by different authors. Academic Journals and References: To show loyalty and satisfaction of the customers in adapting to the changes and implementations their banks were doing with information technology was seen in the journals that showed the likes and dislikes of the customers of the banks. As this helped to form the basic structure for the surveys and questions for the interviews and the surveys, this information was taken from library and Internet.

4. Limitations of research

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The dissertation is still not completed since there are many research limitations where the researches are kept. The main key limitations in this research are as follows: The first and foremost is the time limitation contradictory to the annual research which has more funds so that it can easily run for more years and may able to access all research issues but we have limited time to finish the research, the time limit will be within the course of time period the dissertation should be completed. There are many advantages with this research if it continued for a longer period of time 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 the 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 taken as one of the limitation and according to me I had enough respondents for the surveys and the questionnaires to generate a meaningful insight to show the satisfaction in the retail banking customers and also on the impact of information technologies in their banking services. As it is a dissertation belongs to a student and hence may have low funds to do research. The dissertation was mainly dependent on relied contacts and networks in particular situations to improve the sample people for the in-depth interviews and questionnaires to understand in a better way about the impact of information technology on the customers of retail bank.The above limitations that are mentioned raise an issue of reliability, validity, ability to generalize the findings for this research and bias.

4.1: Reliability:
The results of this research are considered as robust as they are given particularly using the triangulation methods. The survey results were triangulated with findings from the existing secondary research also from the in depth interviews. Page 58 of 85

4.2: 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.

4.3: Ability to generalize:

With the triangulation method in the research we may approach the respondents and make them feel that there is a solid stable state to face and also to ensure with an exited theme which will be related to the affects of information technology on the customers of retail banks.

4.4: Inherent bias:

we could see a natural intension to respond from the sample of people taken. The research design is developed in the best way as it has a complementary approach to make 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 triangulated by taking 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 conclusion to our analysis. But there is an issue always occurs mainly due to the uncertainty in the coverage extensivenessas there are many reasons like the cultural 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 targeted 300 responses but we could manage to get only 250 and where not able to focus on the customers high net worth importance, about the information about the competitors were not included. Page 59 of 85

5. Research ethics

This research has taken help from many sources like the Internet, people and from the banking industry. Here in this research we are trying to show the customer's loyalty to the Page 60 of 85

retail banking as they are introducing new technologies to their customers and are they still able to sustain their customer's loyalty. With the retail banks reputation in the banking industry it has to think of new strategies to satisfy their customers and also keep their loyalty. Understanding what are the important pointers about the customers that would keep them satisfied. Meeting the customer's expectation should be the first thing to keep in mind of to the keep the loyalty of the customer. "Everyone knows that customers are more knowledgeable and more skeptical than ever before and that in today's environment they do a lot more homework before committing to a bank's service. Many consumers will check products and prices online before making 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 maximum transparency." In the retail banking industry they have seen a speedy growth due to the Web that is creating great opportunities for the new businesses in the retail banks. And it also shows different methods of using the business market for the new bankers. "Experts estimates that consumer use of on-line banking services will increase over 20 fold by the end of the century. Geography and the number of branches become irrelevant and community banks are able to offer the same level of service and convenience to customers as the largest banks. In the past over 60% of existing bank customers have cited bank selection to be based on convenience of location. For the customers of today, convenience of location includes the availability of 24-hour access via the Internet."(Wilson, 1996)

6. Finding of research
The secondary data finding involve both the surveys on thein-depth interviews and questionnaires. This is elaborated separately further in a detailed way as shown below as Page 61 of 85

6.1. Survey Questionnaires:

This is explained in the following concept using literature review framework that was developed toknow the customer satisfaction level and loyalty in the retail banks and the impact of information technology on the retail banking services. The questionnaires are first tested as a pilot sample to determine if the questionnaires would provide the results in regards to the questions addressed. First the feedback from the pilot research is taken 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 consists of the retail bank profile questions. Then the next part will explain satisfaction and loyalty stages from the survey conducted on sampled people regards to the impact of information technology on the customers of retail banks. And the final part would show the characteristics that made the customer's satisfaction and loyalty towards the retail banking. 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 important 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 banks. The next section contains the details of the level of satisfaction and level of loyalty in this questionnaire. These questions are useful to know the relation between the customer satisfaction levels and the loyalty of them towards their bank with the impact of information technology and the changes that it made in the services of the bank. Can it be possible to rate the how frequently the bank services are used?

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The question assesses the customer's preferences over the bank tellers to the ATMs or the Internet banking or to the phone banking. Do customers perceive cost? Bank customers in India and UK perceive extra cost that is associated with the services provided differently in the bank. The survey customers ranked extra cost as important as reliable accurate services Why do customers prefer Human Teller/ Operator? Banking customers chose the human teller/operator when they are using the bank services an ability to provide instant help and assistance as well as their courteous service. Why not phone banking and Internet banking? In general the banking customers do not see Internet or Phone banking services as convenient. They do not think that services can minimize the waiting time or the transaction time. And the banking customers also do not perceive that Internet banking and Phone banking services are as reliable and accurate as that provided by the ATMs or the human tellers.

Are the technological innovations such as phone banking, ATMs and the Internet banking preferred? As the technology was ranked little low in importance in the findings but more than eighty percent of the survey customers in both the countries said that they preferred interacting with technical services over the human tellers and more than ninety percent are looking forward for innovations in the technology in the banking services.

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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 ranked low in terms of importance.

Which mode of service is least satisfied? In UK the bank customers are less satisfied with the phone banking services and few times it goes for the Internet service also. However in comparison to UK the Internet banking is low in India. What is the Most Satisfied or the Satisfactory Mode of service? Are the retail bank customers of the bank are more satisfied with the personalized services which are provided by the bank tellers or are they more satisfied with the services that are provided by the machines like ATMs, Internet banking and Phone banking? Generally among the services that are provided by the retail banks are the automatic teller machine, human tellers/ operators, phone banking without operator assistance , phone banking with the operator assistance and internet banking in India and 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 questionnaire. This method was done in order to have a similar coverage in terms of the questions that were raised and they were able to address the research issue effectively with the given conceptual frame work 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 excepting from the retail bank and its services. Page 64 of 85

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 that are provided by the retail banks. The second part of the interview is related with the questions regarding the satisfaction and loyalty of the customers and also knowing their response on the services like the ATM, Internet banking and Phone banking. The starting point is similar to the questions in the questionnaire but in the later part of the in-depth interview a more detailed information is obtained from the customers on a personal level what kind of service would they prefer and why do they prefer it and would they like any changes in the services that are provided by the retail banks. The final part of the in-depth interview that involves factors that we have discussed in the framework. Here in the discussion it was mainly discussing the each service which also defined the expectations versus their perceptions that each individual customer had about the services which were provided by the retails banks. But as in the questionnaires we did not get the rating in the in-depth interview. The main concentration is mainly on the qualitative discussions,and also to understand the gaps that existed and in what way could the bank improve its services. The output of the in-depth interviews are compared with the questionnaire responses and then analyzed. In a survey which was conducted by Ernst and Young results show that a in India maximum retail customers are satisfied with the banks which follow the country stream and the confidence improved tremendously in year 2008 as their was a global financial

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crisis in the world. Only India was less affected with this as they had preferred banking policieswhich are followed by the Reserve Bank of India. "Indians have the highest level of trust and satisfaction in their banking industry the credit crisis had minimal impact on the customer confidence in the Indian banking industry. As this survey had surveyed almost twenty thousand and five hundred global retail banking customers in which there are1000 from India. The main reason for this check loyalty levels of the customers towards their bank and its services. "In order to drive customer value and reduce attrition, much-improved leverage of customer data and insight will be critical, as tailored offers and service propositions are likely to be positively received by the customers,"said E&Y National Director Viren H Mehta. HDFC bank is one of India's premier banks and in the year 2009 it has won the "best retail bank in India" and this was third time it won the award. This shows the loyalty of the customers towards this bank, and hence HDFC has managed to operate better than its competitors in the retail banking.

6.1.1: Case 1
The following are the details of case1 Name: swetha reddy Age: 34 Gender: Female Occupation: Manager Traditional banking

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Swetha has been banking with ICICI for 4 years. She said initially she had to travel to the bank on frequent bases to withdraw money. In the queue for long hours for withdrawal and that used to take away lot of time including the travel time. For smallest of information also she had to travel to the bank and get the information personally. Though the service was good in the bank as the bank tellers were friendly and very courteous but still she was not satisfied with that. After the introduction new services the retail banks introduced ATMs and that saved swetha's time it became very easy to withdraw money check the account details and also deposit money. Yes, there was wait time but compared to the normal traditional banking it was much easier to do this. And the bank slowly introduced the Internet and phone banking which actually made their life easier. In the initial stages she was skeptical about giving out her information and she was not sure if it was secure or not. The bank assured her of the security and whenever they login it would be into a secure site where information cannot be hacked. As they produce individual truncation pin numbers and passwords. And the site is functional 24 hrs a day and seven days a week and she can withdraw or transact even after the banking working.For a working woman like her these technological innovations has proven to be successful as she can access the bank at any time and from anywhere which is a greatest service the bank could give to her.

6.2.2: Case 2
Name: Mr. John Thomason Gender: Male Occupation: Businessman In the initial days when john opened an account with Barclays bank. He liked the services which were provided by the bank. Wherein he is always treated right when visits the bank for his transactions. But when the banks introduced the new services like the ATMs or phone or Internet banking it was not the same for him. He felt the personal touch was missing as in the traditional banking scenario. There were benefits in the new the services Page 67 of 85

which were provided by the bank but still he preferred the services in which the human touch was always there.

6.3.3: Case 3
ICICI bank was the first bank in India in 1997 which has offered for the first time the internet banking to its customers with the help of its "Finacle's e banking solution and established itself as a leader in the internet and e-commerce space". In the future it expanded its services in the e-commerce like the funds transfer, bill payments and for the corporate banking which is on the Internet. For ICICI bank the Internet has become a critical element which helped the bank win 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 banking transactions to different sources of banking which they provided. In today's date only 25% of transactions take place in the banks and the remaining percent of transactions are done through the net, as this has helped the bank to use its work on the customer acquisitions more. The ICICI bank on an average has for a month almost three hundred thousand customers which is the highest in the world.

7. Analysis/discussion
What will be the main reason in selecting the type of banking services? The majority from the 200 responses of the survey conducted maximum people are selecting or preferring the modes of services based on the services offered to the customers from their respective banks. The 5 percent of the reasons are based on the customers physical behavior to select the bank. Every model will have its own limitations in their bank 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 important factors to select Page 68 of 85

a retail bank and to open accounts in those banks. So to attract the customers the banks should concentrate on their strategy and mainly on the satisfaction factor of the customers. To reach the customer satisfaction the banks should improve the technology and can erase this barrier and can plan how to face this? From the present survey we can notice that the technological innovation such as Internet banking has not given a good rank by the customers and can be seen in the present table. To understand the broader picture in selecting a retail bank, this process can be found from the data of the report, the survey present report conducted on the selected customers to know the research uses.

Country

Total Internet Total Internet Users Banking Users (%) (%) 48 38 50 21 7 40

Australia Singapore Hong Kong

The above observations were deduced from the recent surveys. a.the literacy level and the knowledge level are very low so that the new technologies are difficult to explain. b. the state of technology that is present in many countries and has an affect on utilizing the online services. c. The cultural differences that can be seen in the two countries were taken as the major reason to take up the Internet banking between the two countries. Through information technology the retail bank customers can access the account status, performances of their businesses, and the newly introduced the products and services. For example the retail banking industry in which the automated information processing would Page 69 of 85

enable the customers to connect with the bank at any time or at any point in the retail banks network coverage. Thus information technology would create and strengthen the customer loyalty with the retail bank. It is critical for the banks to attain the desired goals with the well-managed CRM solutions. Cross industry competition has dilate the different products that banks are offering. Banks major goal is to maintain a highly cordial terms with the consumers if they wish to list themselves among big market leaders.There are lots of rivals in the market who are also adopting different techniques to develop consumer relationships. Among the all financial service provider banks should make themselves different by adopting different methods like raising the value, various products line and best accessibility which was not present before. Nowadays consumers are looking for the banks which are not complicated in other words their process should be easy. They must be providing the useful data and works through the all aspects. CRM solution is quite effective in storing the consumer data. With this all the customers are provided with required information. CRM solution picks the true data from the customers then it saves the data in the 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, banks would be able to do the market campaigns effectively. This gives the strategic advantages from the profitable consumers and ignores the unprofitable ones. The all-successful banks should be recognizing the upcoming business opportunities by updating the current product and servicing the future market requirements. To cope up with these issues and to achieve the goals banks needs the web technology that collects the data centrally to make sales across and upcoming opportunities of selling and assist the leader to make the right strategy. The consumer relationship is one of the new methods which include consumer loyalty towards organization. Differences between the product and prices are of low importance. Page 70 of 85

With this reasons banks are now unable to draw the customer attention towards products and services. There should be different variety of the products which can stand against the other products in the market. That product should meet the consumer demand. The main goal of the banks 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 banks need to maintain the quality so that consumer strength goes up.

8. Pitfall of CRM
Nowadays in the CRM environment we look the risk of different suppliers who are building the rational database technology. And this promotes the consumer relationship as a tool of the organization. The reason is mostly all latest banking applications are developed with the database gives the average consumer information. 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 each information in the database. This is always advisable to implement only one CRM system and next to make the database with the different applications.

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The notion of consumer orientation seems genuine. There are various pitfalls which don't allow some necessary changes. The banks can minimize the risk by ignoring 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

9. Conclusion
Information technology's innovation may increase or reduce still the customer satisfaction would depend upon the need and expectations of the customers, as we can find all this information in our research. The requirements and expectations will change in the entire Page 72 of 85

country due to the various categories like education, age group and many other levels. We can see here due to the implementation of information technology new services were invented and advancement of the existing ones. These new services like Internet banking, electronic payments, and investment securities have increased the income of the bank and a more convenient service for the customers. How the retail banking industry is made available to its customers by giving a 24/7 service to their customers? They have introduced secured modes for transferring their money. Technology indeed had a very positive impact on the retail banking industry. As retail banking industry has become more efficient and the profits and customer satisfaction increased. As information technology is a vital part for any business process and the innovations in this process has helped the banking industry for a very long period of time and the customer were satisfied with each new innovation for their own comfort the retail banking industry was doing this. It all started by exchanging of coins and now the retail banking industry is a sophisticated business where all the customers are treated with a special treatment as they are being introduced to new and better services every time. Retail banking industry is one industry, which is implements lots of service, related technology, which traditionally was provided by the persons of the bank, but with the changing technology they have come up with services, which would make the life of the customer easier while they are banking. The customers would receive the same amount comfort while they are banking personally online or through Internet the service will never be different. They would have the privileges of the customer always and would be treated the same no matter what technology they use. It is clearly explained that the complete banking business is moving with many changes. The changes are nothing but developing new technologies to make bank process easy. Many banks are choosing new methods of banking from cross subsidy accounts. It is directly saying that they are readily neglecting the accounts making less profit. Offering attractive interest rates and banking charges encourage these accounts. By doing these ways the accounts are maintain higher balance accounts, which makes profits to the banks. The bankers are also approaching new methods like telephone banking; ATMs Page 73 of 85

and Interactive voice response so that it has chances to gain money with these increases in facilities. Anyhow to provide any kind of service to the customer all category people are considered and not single person is taken into consideration. The banks will always try to gain more profits from all accounts. If there are any low cost making customers then they are considered as an economic channel for distribution and also treated as 'available customers'. But the customers should be aware that they are maintaining adequate amount or not else the banks will remove the accounts from the banking process completely. The Midland bank says, "The fact is that banks are becoming more selective. People tend to think they have a divine right to an account, but it is a two-way process." (Wright D., 1993 p.3/12). There is also one more point to be observed that the banks prefer to only high accessing customers. The banks are also selecting the customers who are profit making and credit worthy before they are given an account. Since banks are providing high accessible facilities to customers through many available mediums like Internet. But the banks are giving an opportunity to hackers to do frauds things on the available data on Internet. So this type of service needs maximum care to work on. If this kind of facility is taken extra care with more secured way then it may lead to less use of the available options during process for the customers who are in exact need. An adequate data is to be kept on the Internet and suitable methods are taken if not the customers may lose confidence hence the utilizing of these offers will reduce. Many of the ATMs are replaced with the branch network since there is an increase in usage after the telephone banking services are offered. Anyhow technology will be considered as an advantage inn the competitive banking market. But in most cases it is observed that the technological advantages will exists only for short period only. The new technologies like ATMs and Mondex are adopted only for limited period as technologically advanced one. If these are employed for long period then it may effect the bank structure and its position. One example, which explains this situation, is that the ATMs are not able to become a strategic tool to provide the required branch network information since the customers will always expect in high range. So ATMs are decreasing the barriers for the new entries into the market. To do the banking process Page 74 of 85

there is no need to consider these branch networks. Now-a-days many of the super markets are providing credit cards to its customers to attract them with low interest rates. This will effect the banking sector. Many banks like Bank of Scotland are attracting its customers by offering very low rates and also to compete its competitors in the retailbanking environment. In order to withhold in the market the new entries will offer low rates to its customers, easy banking process, and penetration pricing all are for temporarily, hence the competition is increasing. The industries may shakeout and it may lead to losses due to price war in the market. This will also shows effect in the future pricing in the financial and banking sectors. If the bank is restructuring then the savings made through the banks may show errors hence it is advised that it is a risky factor to invest high potential amount. This situation cannot taken very easily as this is not a single accident to happen Barings directors had been aware for several weeks of the existence of a file in Lessons computer records called Error Account 88888. (Kane F., et al., 1995, pp.2/3). Anyhow this may not lead the bank to fall down. If the directors are operating in a perfect way without any mistakes and neglecting any kind of bad situations occurred the bank may see supernormal profits within no time. But one point to be taken seriously that this kind of situations is repeating continuously.

CRM is basically the solution system, which helps to increase the profits from medium to long. With its great capability of storing consumer knowledge, proper treatment of consumer and perceptions it maintain its standard to meet the customer 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 ofsuperiors fast and efficient complaints Quality service Page 75 of 85

 Delivery of promise 11simplicity and ease of doing business Resolution policy All the private sector banks are trying to allure the main parts of society by its way of CRM solutions. Some nationalized banks are also following it. Many bank personnel accepted that CRM systems assisted them in maintain consumer retention. With this the banks are able to make high profits. As it is helpful in attaining the goals they like to continue with this processed and update them accordingly. Some employees think that it is only a wastage of time as they are not aware of it. The statics shows that more than 83% of the users were happy after the implementation of these solutions. And around 17% were the unhappy one due to some cost considerations. CRM process is all about collecting the information that flows from the actual consumer to main ones. All the data, which are flowing from the different channels, should be brought together in one whole into a consumer database. This is required to manage the consumer profiles that make the banks to maintain the consumer services. Mostly all financial suppliers accedes that consumer care services are the heart of financial industry. Mainly all the banks prefer to globalize the customer care centers. On the hand some other prefers to provide the main customer care work to interact with different companies. These institutions must see the significance of new technologies with the reconstruction of the systems. All the level of CRM strategy needs important inventions in the industry of the banks movement of the data. Genuinely the CRM systems could run as per the saying "the right customer with the right product at right place and in the right moment" is not impossible one. But still so many financial institutions are facing the challenges of maintaining the databases, which contains consumer data. So the different entries related with single consumer if that person possess with more than one product. It will be a challenge for the sales persons and for the relationship managers to see the complete picture of the consumer. There are so many CRM systems, which failed due to unstable consumer information. Consequently the issues of sending the accurate information arise.

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For instance the same discount to the same consumer. So the CRM is the big tool for the financial institution to develop.

10. Recommendations

The recent economic downtown reduced theUK and Indian retail banks productivity where the money has transferred from the present banks into the new banks, which have improving the technology innovations. The retail bankers have to become strong in the technology to compete the organizations in India. The government should concentrate Page 77 of 85

maximum where it plays a vital role in promoting and developingthe new technological innovations like providing intensive electronic services, incentives and with a better innovative technology as the higher convenience and speed is generated in the retail banks which would increase the level of satisfaction of its customers. An example would be the ICICI bank in India as it continually develops the cutting edge in the information technology in mobile and Internet banking. Without the governments help it would not reached to this stage.

10.1: Cultural Diversity

According to Adler (2002, P.16) culture is " that complex whole which includes knowledge, belief, art, law, morals, customs and any capabilities and habits acquired 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 banking was not taken up properly because of the cultural innovations. The cultural diversities are processed with the many levels when the technological innovations of the information technology to improve the customer satisfaction of the retail banks (Adler, 2002) 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 like facts as the customers satisfaction and convenience is ranked higher and given more importance.

10.2: Training or Public education.

The biggest problem is to bring the customers educated to make them learn these information technology innovations so that will be very much useful to the customers. To achieve this government should help since it will provide funds to employees to make the people learn and upgrade new uses in the banks. From the need-based model the Page 78 of 85

customers should improve their knowledge to use ne technologies in banking and also to improve their skills. Courses about the computer should make to learn by the people. The problems arises is with 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 currently existing client. It is saying that "it is seven timesmore expensive to acquire a new customer than to keep an existing one", Hence the importance of consumer data and management should not be ignored. It is of great importance for any organization to achieve the desired goals. CRM is a bundle of methods, procedures, techniques, organizational culture and technological solutions. It increased the company's capability to check the differences as per the consumer behavior and demands. It sees the upcoming opportunities to serve the customer and act accordingly. All the banks must focus on the consumer relationship building techniques like reply 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 networks and branches. Suggestion box is important to know the thoughts of the employees. It gives the picture what actually are the advices and suggestion for any improvements. It is important for healthy environment. Another way of strengthens the relationship with the electronic feedback. Consumer will provide the feedback electronically to know their behavior and thoughts about the current products. This will helps in improving the products and services. Banks would be able to get the benefits as low price makers. CRM solutions enable the bank 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 performances and service staff retail banking are able to develop the successful consumer relationships.

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Correct CRM solution increases the customer satisfaction level and it leads to growth of the company. It assists in building self-motivations in the consumers, which give boost to generate revenues. There are various issues, which attract the attention of the banks like its efficiency, its applicability and targets. Many banks got benefitted from CRM solutions. Indian retails banks must concentrate on this and put more attention on the customer relationship activities. The Indian banks are not yet developed in CRM solutions. They needs to implement CRM as per the requirement and trained their employee wherever it is necessary. Then only this institution would be able to meet the demands of "universal banking" The main goal of the CRM is to make the use of technology and human resources. To set the vision on the perspective of consumer various banks should understand the significance of CRM. And CRM understands the significance of consumer only

10.3: steps that bankers can follow to build up long-term relationship with their customers:
Welcome call Sheets of profile Bank customer interaction detail file Diary of appointments Dates tracker alarm It contains the collecting the information from the various institutions and then makes them in one whole. This from the technological point of view, all the information pertaining to the consumer should be made in one externally and internally. This studies the consequences of the detailed research. It analyze that whether the various segmentations of the consumer has reached to the key points like sales force, web surveys, mails etc. While interacting with the and while making all the transactions all the points should touched. The online system of doing business has changed the complete scenario. It enables the consumer and organization within the reach of each other. All the

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details can be seen from customer care centers through online and then through mobile devices.

10.4: to study the customer following suggestions emerged from the study:
1. Educating and providing the proper training related to CRM solutions is being followed by the private sector banks and with this they are running. This is what all nationalized bank should focus on. 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 works in a team. 3. Banks personnel should communicate with consumer so that they should get quick and prompt reply. 4. It should be understandable by every personnel that CRM system is for assisting them to make interaction with consumer. It realizes beforehand the consumer needs and provide with services as per their needs. 5. Whether banks are meeting its goals or not CRM systems should be taken as a practice of regular development. 6. Listening to the consumer problems is the half work done. So every employee duty is to listen properly to all issues of the consumer and act quickly. 7. For the continuous growth of the technologies all the banks should opt for new technology. These will assist them in maintain the one to one interaction with the consumer on Internet. 8. With the day-to-day changes in the consumer needs and requirements new services should be launched. Page 81 of 85

9. What will be the cost for implementing the CRM strategies? It should be measured By the banks 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 trained worked but to all level personnel.

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King R., (1995), Value Conflicts and Social Choice in Electronic Payment Systems, Ed. Finnegan R., et al., and Information Technology: Social issues a reader, (London: Hodder & Stoughton Educational in association with the Open University press, 1987) Porter M., (1985), Competitive advantage: Creating and sustaining superior performance, (London: The free press) Rajan A., (1984), New Technology and Employment in Insurance, Banking and Building Societies: Recent Experience and Future Impact, (Aldershot: Gower Publishing Company Ltd.) Sloman J., (1994), Economics, 2nd Ed., (London: Harvister Wheatsheaf, 1991) Smith S., Wield D., (1994), "New Technology and Bank work: Banking on IT as an 'Organizational Technology'", Ed. Finegan R., et al, Information Technology: Social issues a reader, (London: Hodder and Stougton in association with the Open University, 1987) APACS, (1996), The UK payments industry: Key facts and figures 1996, (London: APACS (Administration) Ltd.) Bank of England, (1995/96), Bank of England: Banking act report, (Bank of England) Bifu, (1994), Mondex: jon/rmb/mondex/Sept.94) The electronic replacement for cash, (Bifu:

Bifu, (1996), Banking, Insurance and Finance Unions Response to the H. M. Treasury Consultation Document on the Electronic Presentation of Cheques Cavell D., (1996), Choosing the channels of tomorrow, Chartered Banker, (Canterbury: The Chartered institute of bankers, Dec., Vol. 2, No. 12) Cowdell J., (Sept. 1996), The alliance of finance with science, Chartered Banker, (Canterbury: The Chartered institute of bankers Vol. 2, No. 9) Cressey P., (July/August 1996), From Supermarkets to Super Banks, UNiFi Briefing Vol. 10, (Haywards Heath: UNiFi) Donkin R., (1995a) Recruitment: Reviving the spirit of Siegmund Earburg People management could be at the centre of a City crisis, Financial Times Donkin R., (1995b) Recruitment: Human resources and an agenda for competition Companies must nurture their employees to create an innovative workforce, Financial Times, Ernst & Young, (1996), Managing the virtual bank, (Business Monitor - Ernst & Young, New York, http://businessmoni . . .proc/180/virt.html, 22/05/11) Page 83 of 85

Gapper J., (1997), NatWest suspends four managers: Staff bonuses cut as derivatives Losses rise to 90m, Financial Times, Garrett B, (1997), Planning for a secure future, Chartered Banker, (Canterbury: The Chartered institute of bankers, Feb., Vol. 3, No. 2) Gia P., (1996), International bank lending to LDCs-an information-based approach, (London: Bank of England, Working paper series No.43) Jacques M., (12 June 1994), Caste down; Culture Essay, Sunday Times, (London: Times Newspapers Ltd.) Jackson T., (1997), Intellectual revolution, Financial Times, (London: Times Newspapers Ltd) Jones T., (1996), Submission to the House of Representatives: Mondex on ' the future Of money', June 11th 1996 (http:/ / www.mondex.com/hserep.htm, 11/5/11) Midland, (1995), Annual review and summary financial statement: Putting our Customers first, (London, Midland Bank Plc.) Kane F., et al., (1995) The final chapter; Barrings bank collapse; Insight; Business Focus, Sunday Times, (London: Times Newspapers Ltd.,) Mondex (1994), Mondex: The worldwide alternative to cash, (London: National Westminster Bank Plc.) Mondex, (1997), in real life, (http://www.mondex.com/swinreal.htm, 1/06/11) Banker, (Canterbury: The Chartered institute of bankers, Vol. 1, No. 3) The Economist, (1995a), A job for special branches: banking technology. (Multimedia kiosks), (European Business ASAP, Key words: banking technology, 20 May, 11) The Economist, (1995b), Finance and Economics: Surfs up for new-wave bankers, The Economist, (The Economist, Oct. 7-13th, Vol, 337, No. 7935) The Lex Column, (1995), UK Banking, Financial Times, (London: Times Newspapers Ltd) Unifi, (1996), White collar cull in an age of anxiety, Unifi Briefing, (Haywards Heaf: Unifi, Vol.11, Sept.)

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Wright D., (1993), Personal Finance Editor, "Banks hide criteria for rejecting customers; Personal Finance", Sunday Times (London: Times Newspapers Ltd)

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