"In contract, the marketing concept takes an outside-in perspective. It starts with a well- defined market, focuses on customer needs, coordinates all the marketing activities affecting customers and makes profit by creating long-term Customer Relationships (CR) based on customer value and satisfaction" (Kotler et al 2001 p.409-410). Under the concept customer focus and value are the paths to sales and profits
Relationship marketing in banking is the activity done by banks to attract, interact and retain more profitable customers because most retail banks have both profitable and unprofitable customers (Walsh et al. 2004). To gain competitive advantage, big companies are now moving to a new orientation which is termed as "customer- centric orientation (Bose 2002)
According to Galbreath and Rogers (1999) CRM can be described as activities a business performs to identify, qualify, acquire, develop and retain increasingly loyal and profitable customers by delivering the right product or service, to the right customer, through the right channel, at the right time and the right cost. CRM integrates sales, marketing, service
enterprise- resource planning and supply chain management functions through business process automation, technology solutions and information resources to maximize each customer contact. CRM facilitates relationship among enterprises, their customer, business partners, suppliers and employees.
For a successful bank, customers are very important and they must serve and treat their customers fairly. According to CRM Forum many banks are investigating in managing their customer relationship through CRM. CRM helps banks by using correct processes and procedures to look after their customers. CRM is software which gives a bank valuable information at the most basic level like remembering the birthdays, the names of the customers and monitors their customers' activities. This kind of information helps sales staff to give more value to make customers feel very special. Business call centres are the biggest user of CRM software because they contact many customers at the same time and give feedback. The strategy of CRM is not to have only installation of this software but its starting point is to consider employees at first, the employees must be well trained to CRM theory so they could get maximum benefits by using these tools (Barington, 2008).
According to Bridge (2006) customer relationship management is considered a new approach, new management concept. It is to manage technology, information resources, process and people to make an environment which permits a business to have view of its customers at 360 degree. A CRM environment is complex and it needs the organizational change, a new thinking and vision of the business. The database in CRM environment is considered as a resource from where commercial benefit is generated by understanding the customer behaviour.
CRM technology can be used by all firms but mostly it is beneficial in financial and telecom sectors where a lots of data about customers are handled (Harvard Management Update 2000). CRM is a technology innovation with its ability to collect and make analysis of customer data by seeing the customer's patterns, predict customer behaviour, respond on time with customized communication, creates predictive model and deliver products and services to individual customers. By using this technology, a bank can optimise interaction with customers create a 360-degree view of customers to learn from past interactions to the future trends (Chen and Popovich, 2003). A 360 degree view of customer is a person model support by technologies in prediction of customer buying patterns and price differentiation (Galbreath and Rogers, 1999). The main idea of this model is that the best market performance is achieved by having superior skills in understanding the customer in a better way (Narver and Slater, 1990). As discussed above the 360 degree view can be illustrated using the diagram below.
CRM is a strategic view of how to handle customer relations from a company perspective. The strategy deals with how to develop and increase customer relations from a profitability perspective. Based upon knowledge about the individual customer's need and potential, the banks develop customised strategies describing how different customers should be treated to become long-term profitable customers. The basic philosophy underlying CRM is that the basis of all marketing and management activities should be the establishment of mutually beneficial partnership relationship with customers and other partners in order to become successful and profitable ( John Johansson & Fredrik strom-p.2).
In order to more efficiently manage customer relationships, CRM focuses on effectively turning information into intelligent business knowledge. The information can come from anywhere inside or outside the firm and this requires successful integration of multiple databases and technologies such as the internet, call centres, sales force automation, and data warehouses (Johan Johansson & Fredrik Strom-p.2).
There is no universal explanation of what CRM is, since the area is fairly new and still developing. It is therefore important to remember that several attempts of defining CRM exist and that many companies adapt the definition to their own business and their unique needs (Johan Johansson & Fredrik Strom).
CRM is a new customer-centric business model that reorients banks operations around customer needs ( as opposed to products, resources, or processes) in order to improve customer satisfaction, loyalty, and retention. CRM is the integration of customer focus in marketing, sales, marketing, sales, production, logistics and accounting, which is in all parts of the company's operations and structure. (Johan Johansson & Fredrik Strom).
The activities a bank performs to identify, qualify, acquire, develop and retain increasingly loyal and profitable customers by delivering the right product or services, to the right customer, through the right channel, at the right time and the right cost. CRM integrates sales, marketing, service, enterprise resource planning and supply-chain management functions through business process automation, technology solutions, and information resources to maximize each customer contact ( Johan Johansson & Fredrik Strom-p.3).
However, the adoption of CRM by financial institutions as a marketing strategy in recent years was due to the trend of technology. Also, financial institutions businesses are complex and competitive. Not only are there fewer new customers to pursue and more entities pursuing them, but the industry is also impacted by regulations that vary worldwide and are all in a state of transition. Competition has increased with banks and brokers adding insurance products to their product mix, and insurers are now offering broader financial services products. The internet has added and increased pressure to margins by enabling customers to do their own comparison shopping. "Capturing and sustaining market advantage in this fiercely competitive industry hinges on the ability to understand and leverage the industry's most valuable assets- the customers"( Peppers and Rogers, 2002 p 33).
Kwame Dzato (2007) commented that CRM strategy of any financial services organisation should focus on integrating people, processes and technology to maximize the value exchange. Bygstad (2002) cited Ciborra and Failla(2000) who describe CRM as an information infrastructure, consisting of processes, people and technology.
They simply maintained that financial institutions who want to adopt CRM systems need to address three critical factors- people, process and technology.
To further the understanding of CRM in financial institutions, the various aspects of CRM are been implemented by banks. They include; Operational CRM, Analytical CRM and Collaborative CRM.
Operational CRM is centred in supporting business processes which includes customer contact (sales, marketing and services). The resulting data is sent to the users since it is required to carry out the activities related to the commercial area. According to Gartner Group (2004) operational CRM supports the following processing tools:
The operational processes remain the core of the business, producing the actions that give the bank their main goals.
Analytical CRM is committed with the collection and analysis of data related to customer and marketing, providing value information for decision taking support and strategic directions in the sales areas. Since the management processes in operations such as the ones cited before, the relation between these elements is pointed out.
The supporting processes act together with the management processes, giving them sustainable actions in order to carry out the main business processes of the bank. Similarly, Collaborative CRM supports the relations between users across the organizational structure and aid in the actions of operational CRM.
CRM technology applications link front office (for example sales, marketing and customer service) and back office (for example - financial, operations, logistics and human resources) functions with the company's customers "touch points" (Fickle, 1990). A company 's touch points can include internet, email, sales, direct mail, telemarketing operations, call centres, advertising, fax, automated services and front office services. Often these touch points are controlled by separate information systems. CRM integrates touch point around a common view of the customer (Eckerson and Watson, 2000). In some organisation CRM simply means a technology solution that extends separate databases and sales false automation tools to manage sales and marketing functions order to improve targeting efforts.
Information technology(IT) has long being recognised as an enabler to radically redesign business processes order to achieve dramatic improvements in organisational performance (Davenport and Short, 1999: Porter, 1987), Bacun (2000) is of the view that CRM software solution is only a "TOOL" for procedures already in place. IT assists with the redesigning of a business process by facilitating changes to work practices and establishing innovative methods to link a company with customers, suppliers and the entire stakeholders (Hammer and Champy, 1993). CRM applications take full advantage of technology innovations with the ability to collect and analyse data on customer patterns, interpret customer behaviour, develop predictive models, and respond with timely and effective customized communications and delver product and service value to individual customers. CRM solutions deliver depositories of customer data of a fraction of the cost of older network technologies.
Kennedy (2006) says that e-CRM (Electronic customer relationship management is considered as a strategic technology centric relationship marketing for business framework. According to Forrester research (2001) e-CRM is the consolidation of traditional CRM with e-business market place applications
Shan and Lee, (2003) say that e-CRM expands the traditional CRM techniques by integrating technology of new electronic channels, such as web, wireless and voice technologies and combines them with e-business applications into the overall enterprise CRM strategies. The purpose of e-CRM is to serve the customers in a better way, retain valuable customers in a better way and enhance analytical capabilities in an organisation (Fjermestad and Roman, 2003).
It was further added by Young (2001) that e-CRM industry compound growth rate all over the world was 27 percent, from $5.2 billion in 2000 to $17 billion in 2005. E-CRM is helpful for companies to track all sales and marketing activities very easily they can pinpoint targets and make commitments and adjustments in new products. While Dyche (2001) says that the benefit of e-CRM is to retain the customers, improve customer services and to assist in analytical capabilities, in the meantime it is an infrastructure which provides support to valuable customers to remain loyal, e-CRM comprises of hardware, software, processes and applications to manage all these issues.
Companies need to create multi channel hub which can take information from recognized customers and make a single view of customers (Shan and lee 2003).
In the competitive financial services industry, profitability and growth is largely dependent on client loyalty- thus making the client one of their most valuable assets (Oracle Corporation, 2005). In order to distinguish themselves from the competition, build client loyalty, and gain a competitive edge, companies are looking to client relationship management solutions. Guy Riddle (2005) stated that there are three (3) key reasons why companies are adopting CRM:
Kim (2008) maintained that by adopting a CRM strategy financial institutions among other things can manage client data, including preferences, transactions, and communication history, in a manner that enables executives and management to have a 360 degree view of the client. It can also result in an increase in data accuracy with a common repository of client information that ensures all departments within the organisation are working the same data. It will again improve customer satisfaction, loyalty, retention, and profitability using efficient tools that lower services costs. Kim (2008) noted that adopting CRM will enable a company to comply with the privacy and security requirements of the current regulatory environment. It will again eliminate inefficiencies with a solution that customizes and integrates the company's roles and workflow. The true value of a CRM strategy lies in its ability to transform strategy, operational processes and business functions (Aris Pantazopoulos, Founder, and CRM Today). The effect, he noted, is that companies benefit from high retention of customer and increased customer loyalty and profitability.
According to Joe Taylor Jr (2008) brokers, investment advisors, and sales agents require financial services CRM applications that combine real-time transaction management with long-term marketing and prospecting tools. He says that many CRM systems offer modules designed to handle financial account management. However, the most effective software allows account representatives to maximize client earnings and company revenue by analyzing long-term trends and relationships. For example, CRM systems that can monitor asset allocations can alert advisors to recommend portfolio rebalancing. Likewise, brokers can research trends among transactions to proactively suggest recurring deposits or transfers(Joe Taylor Jr,2008).
In addition, Jellasi and Enders (2004) stated that the aim of e-CRM is to create long-term relationship with customers with minimum cost, reduce the customer defection rate, increase the profitability from low profit customers and focuses on high-value customers. E-CRM is an approach in relationship management. It benefits the banks stakeholders who include employees, customers, suppliers and channel partners.
E-CRM increases customer loyalty because information stored in this software helps banks to look actual cost of winning and retaining their customers. By using this information a bank can use it time and resources for most profitable customers. In this way a bank can find the best customers by managing them as a premium group. This shows that it is not advisable to treat all customers in the same way (Scullin et al 2002).
E-CRM gives more effective marketing because this information is used to predict what kind of product a customer likes to buy and timing of purchase. It allows to make the campaign targeted and to track it in more effective way. This customer data is used to analyse it in more effective way like which marketing campaign is the best and effective and its impact on sales and profitability (Scullin et al 2002).
E-CRM improves customer service and support because it helps to receive, update and fulfil orders remotely and this finest tool is used to complete this service in the best practical way
(Scullin et al 2002).
E-CRM is an efficient and cost reduction tool which integrates all customers data into single database, it permits marketing teams, sales force and all departments within the company to exchange information and to achieve the common objectives of the corporation by using the available statistics (Scullin et al 2002).
There are three phases involved in e-CRM and all are designed to manage customer life cycle and to maximise customer lifetime value (Kalakota and Robinson,2001)
All these phases depend on the information regarding customer and insight of the financial institutions. By gathering online information of the customer which is already in an arranged format and can be pulled to analyse without data entry, as compare to traditional channels. This data streamlining technique enhances information quality with less time. Banks can pick more information through online channels which leads better analytical decisions to have an overview of customer behaviour, as a result targeted and customised relationship are established. By using CRM both parties, customers and sellers receive benefits because customers receive those products or services which are more closely related to their desires while banks receive high-value and low-risk customers. When CRM is designed and implemented properly, it can remove many administrative demands in the banks and gives better information to the customers at low cost (Ahn et al .2003). Cost effective marketing is achieved by well defined segmentation which increases profit.
When customers deal with a bank they move between traditional and online channels. E-CRM supports these multi-channels touch points with the company and there should be consistency in customer experience. When multiple interaction points are offered to customers they will not be ready to repeat the processes if it is not integrated with other departments. There should not be any difference whether a customer is interacting with the company through the sales department, reseller or over the internet. This has created multi-channel management for successful CRM strategy in organisations (Crosby and Johnson, 2002).
The biggest advantage of E-CRM is to link all the operations in a business which affects the customer experience. Technology makes it possible for agents, mangers, partners and other users to maintain a single view of the customer and gain organisational information instantly. This ability of single view of customers has improved customer service ( Crosby and Johnson, 2002).
With E-CRM, it has become possible for companies to tailor the overall customer experience at individual level. This tailoring is based on customer data, active personalisation which include information of contents presented and the products offered and support by advertising from other organisations. The direct-to-customer channel is a key enabler to handle automated systems which make it possible to offer highly relevant contents because of the volume of data which can be collected (example, links clicked in emails, products viewed but did not purchase online etc.) . In TESCO, customers use club cards to get recommendations for products by using this personalised technology. E-CRM improves internet customer's loyalty level in banks. Salmen and Muir (2003) too highlighted that in internet banking operations, electronic customer care tools may be used to enhance customer e loyalty.
When well designed and correct E-CRM is implemented, it increases digital loyalty cycle which becomes lasting competitive advantage. When a bank uses E-CRM technology and redesigns its business processes to acquire customers and to retain them, it makes strength in the areas of customer purchase decisions, which include pricing, quality of the product, marketing sales and customer service. It creates more digital loyalty cycle (Anon, 2001). By using E-CRM, customer-centric companies are using customer information to manage pricing and marketing decisions in real time in better way ( Kennedy, 2006).
Electronic banking is an umbrella term for the process by which a customer may perform banking transactions electronically without visiting a brick-and-mortar institution (CRM Forum, 2008). The following terms all refer to one form or another of electronic banking: personal computer (PC) banking, Internet banking, virtual banking, online banking, home banking, remote electronic banking, and phone banking. PC banking and Internet or online banking are the most frequently used designations. It should be noted, however, that the terms used to describe the various types of electronic banking are often used interchangeably.
Electronic Banking is the delivery of banking services through the use of electronic communication, primarily the Internet. You may also see or hear E-Banking called Internet banking, on-line banking or PC banking. E-Banking may include ATMs, wire transfers, telephone banking, electronic funds transfers and debit cards.
According to Karjaluoto et al. (2002) electronic banking (e-banking) term refers to Internet banking. The Internet has a great impact on the electronic banking now it can be done at any time and anywhere. Consumer all over the world can easily access their accounts 24 hours a day, seven days a week. This provides many opportunities to banks as well as customers and the person using online is young, well educated, having high level of income and good job (Karjaluoto et al.,2002).
It is argued by Ravi et al. (2001) that there are two types of online banking, namely e-banks and e-branches. An e-bank exists only on the internet where paper record is not kept and it operates all over the world without any geographical boundaries and it is available round the clock and without any operating and closing hours, while e-branch bank is a brick and mortar bank that provides internet banking to its customers because customers prefer more e-branch service than e-banking service. It is further added by De Young (2001) that in online banking any type of transaction can be done except cash withdrawal with only mouse click at home or office. This type of accessibility is considered key benefits for those who use this facility; it avoids the customers to go personally to a bank branch and to stand in the queue (De Young 2001).
Vernon Mark (2005) noted the trend in the banking industry to revitalize branches with new technologies. He highlighted that the ATMs will expand the services available at the local branch, allowing bank tellers to concentrate more on customer service. Despite the emergence of Internet banking and call centres in recent years, the banking industry has come to realize that there is still life in the retail branch. ATMs tend toward revitalizing branches with new technologies and making them bank services more effective and efficient. The banking industry learned the lesson that for major financial decisions, such as setting up accounts and buying mortgages or insurance, customers like to visit their local branch. Having realized this, banks have since then been working to equip branches with technology that makes them flexible spaces to issue personal financial advice and to market personalized financial products.
However, it is not only the banks that are learning something about the branch. Customers will also need to be educated�so that they use tellers for the major decisions and in-branch ATMs for the small, high-volume transactions.
In other words, now that banks see that branches are effective vehicles to grow and cross-sell bank assets, branch automation (ATM) should become a strategic investment. A new report from Celent, "Branch Automation Solutions", shows that banks are beginning to come to grips with this, taking advantage of increasingly obsolete branch systems to replace them with new technology.
Moreover, vendors have responded by targeting banks, small and large, with what Celent calls CRM Lite. CRM Lite tries to avoid some of the complexity of full blown CRM, by integrating with the teller and banking systems out-of-the-box, and in the case of vendors that are also providing the back office, integrating to the core as well.
According to Vernon (2005) CRM Lite solutions from the branch automation vendors are less risky to deploy since a great deal of the integration work has already been completed. Banks are having real success with this CRM Lite, which can be measured at the top and bottom lines. CRM Lite being relatively easy to deploy, the resulting kiosks offer basic advice and sell services far more effectively than tellers, as well as provide customers with the privacy they enjoy when performing tasks like transferring money, paying bills, and finding basic financial information. Cash dispensing and deposits have been the primary ATM application to date.
For example, at Royal Bank of Scotland, Glasgow ATMs are providing customers with a no-envelope deposit system and image-containing receipts. Deposit capabilities are also an important feature of the ATMs, where cash and cheque deposits are credited in real time and customers can obtain instant proof of the transaction.
With deposit-taking ATMs you can have an interaction that's better than the interaction you have with a person today. As a consumer, you get more out of it: more information flow, greater speed, more convenience, and possibly even greater movement and management of your money.
Statistics support the notion that this opportunity exists in the deposits arena. Globally, about 80 percent of all cash withdrawals occur at an ATM, while a remarkable number of deposits�70 percent in the United States�are still completed through a teller (Vernon 2005). With the trend innovations going on in banks it is expected that deposits will eventually reach the same level of automation as withdrawals. This is good news for banks, not least because they can realize dramatic cost reductions at the same time as their customers are enjoying greater access to services.
Ross and Weill (2002) raised concerns as to the extent as to which technology should be emphasized in developing a CRM strategy. In order to develop the right technological base to support strategy organisations are to ask:
Whom do we blame when information technology goes wrong?( Ross and Weill 2002)
Barrington (2008) also suggested five key issues that should guide banks into purchasing a particular CRM system:
According to Barrington (2008) any formal evaluation of a CRM strategy should evolve around key questions related to CRM software:
Barrington (2008), commented that in addition to examining business attributes, a company should consider how a CRM system coincides with short-term and long-term goals. Such an approach can be guided by key questions as to whether it is essential to minimize upfront cost. If so, hosted solutions with modularity may be appropriate. Also, should different parties be able to interact in real time? Complex sales can be a highly collaborative process, making this type of capability useful. Again, is security an emphasis? No evidence indicates that hosted systems are penetrable, but if security is a top priority, keeping the system in-house may provide the highest degree or assurance (Barrington, 2008). Another guided question is whether the company wants to foster a consistent process its sales force?
Despite the technological perspectives discussed in the above, the philosophical bases of CRM are relationship marketing, customer profitability, lifetime value, retention and satisfaction created through business process management. In fact, Anton (1996) characterizes CRM as an integrated approach to managing customer relationships with re-engineering of customer value through better service recovery and competitive positioning of the offer. Couldwell (1998) further depicts CRM as a combination of business process re-engineering (BPR) and technology that seeks to understand a bank's customers from the perspective of who they are, what they do, and what they are like. Limayem (2007) intimated that BPR for CRM involves rethinking and redesigning business processes to create value to customers through using IT as the primary enabler with the aim of achieving quantum improvements.
Davenport (1998) explained BPR to mean a structured, measured set of activities designed to produce a specified output for a particular customer or market. It implies a strong emphasis on how work is done within an organisation focusing on the potential BPR impact on dramatic productivity improvements, dramatic product and services quality improvements, cost reduction or efficiency gains, improvements in organisation quality and an increase of market coverage.
According to Bibiano, Mayol and Pastor (2005), business process is a set of linked activities that create value by transforming an input into a more valuable output. Both input and output can be artefacts and/or information and the transformation can be performed by human actors, machines, or both ( Bibiano, Mayol and Pastor, 2005). They further identified three types of business processes which they maintained should be supported by Business Process Management Systems (BPM Systems). These three are;
The implementation of enterprise technology, such as CRM, requires changes to organisational culture (Al-Mashari and Zairi, 2000). While technology and business processes are both critical to successful CRM initiatives, it is the individual employees who are the building blocks to customer relationships. The most important change is never technical. The changes in what goes on inside of people, the ones who use all that technology- their perceptions, feelings and ability to adapt and accept external changes that are occurring- is of great importance (Brendler, 2002). CRM is about "relations" between people. "Yes, business is done people, not companies (CRM Guru, 2008). Liamas and Sule (2004) in their research paper" How to measure the impact of a CRM strategy on the Firm performance" noted that implementing a CRM strategy means to go beyond technology investments. The success of this strategy requires changes in corporate culture, training and involvement of the employees, and tracking and control of the performance.
According to Parasnis (2003), the key issues for any organisation to developing CRM strategy is human behaviour of both employees and customers. There are several underlying dimensions surrounding management and employees that successful CRM implementations require. Chen and Popovich (2003) stated that re-engineering a customer-centric business model requires cultural change and the participation of all employees within the organisation. This change may result in the change of roles of many employees. Business processes and organisation structure adjusts the staff's behaviour. However, they cannot adjust all rules. If the employees have to succeed in changing these rules, then the banks' top management must create and make clear to employees the vision of the change together with clear rules, which the staff can accept and identify with. The success of CRM will depend mainly on a professional approach to work of all company employees, on their motivation, skills and knowledge, but also on systemic and consistent measurement and appraisal of their achievement. The effect will be that some employees may opt to leave; others will have positions eliminated in the new business model.
Brendler (2002) noted that in any environment, people are resistant to change, he stated seven guidelines which banks can follow to overcome resistance and help people embrace CRM as a business strategy. The first that bank should do is to go through the impact of the changes on the people, individually and collectively; building a case for change by focusing attention on reasons for change, including consequences of not changing ands benefits of changing. Again banks who want to adopt CRM strategies would do well to hold regular communication meetings with stake holders as any changes will affect them. This notwithstanding, Brendler (2002), suggested the introduction of supporting mangers who would become champions of the change. Last but not the least, as a matter of principle, banks should understand that there are no quick fixes for that cultural and psychological challenge.
The productive areas for which employees are to be prepared before the introduction of CRM strategy is connected with the following six areas: Innovation and creativity, productivity and efficiency; customer handling and service; colleague handling and cross-functional processes and sharing of knowledge; ambassador; and seniority (Brendler 2002).
CRM Today (2005) reported that employees should be given an exact picture of what is expected from them before the initiation of a CRM process. Employees should possess answers to questions: How each department/employee is affected by the CRM strategy?; What are the new skills they are required tom learn?; How will their success be measured?; What are the organizational aspects that will not change with regard to new system?; What can be the changes to look for?; What they stand to gain with the CRM strategy being introduced?; and What are they required to do to support the CRM strategy?
With the obvious benefits emerging out of customer relationship management (CRM) mentioned above the following factors contribute as major impediments in the smooth implementation of Electronic Customer Relationship Management (E-CRM). According to CRM Forum (2008), they include:
2.8.1. Start-up cost
Many banks have expressed their concern about the huge initial start-up cost for venturing into E-banking. The start up cost includes-
For a successful E-Banking, bankers need to develop a coherent perspective of the role of network technologies and advancement of their IT departments with a competitive introspection of their banking business.
2.8.2. Training and Maintenance
The introduction of E-Banking involves 24 hours support environment, quality service to end users and other partners, which would necessitate a well, qualified robust group of skilled people to meet external and internal commitments. Hence the bank has to spend a lot on training. What is more important is their retention in their organization after necessary training. Moreover, the bank has to outsource certain functions and services to maintain the level of standards and state of readiness. The training and retaining of skilled manpower is a major cause of concern (CRM Forum 2008).
2.8.3. Lack of skilled personnel.
It is a well-known fact that there is an acute scarcity of web developers, content providers and knowledgeable professionals to route banking transactions through Internet. In a fast changing technological scenario, the obsolescence of technology is fast and hence there is always shortage of skilled personnel (CRM Forum 2008).
In paperless banking transaction, many problems of security are involved. A security threat is defined as a circumstance decision or event with potential to cause economic hardship to data or network resources in the form of destruction, disclosure, and modification of data, denial of services, fraud, waste and abuse (CRM forum, 2008). There are chances that documents such as cheques, passbook etc. can be modified without leaving any visible trace. Distortion of information is also possible. Providing appropriate security may require major initial investments in the form of application encryption techniques, implementation of firewalls etc. In spite of implementation of several securities measures, the possibility of a security breach cannot be ruled out.
2.8.5. Restricted clientele and technical problems.
The user of E-Banking needs a computer and time to log on to the site. It means that the target clientele is restricted to those who have a home PC or can access the 'NET' through the office or cyber caf�s. Moreover, phone connections are not always perfect and, on a home PC, the modem connection often breaks off, requiring another seditious log-on. Navigating around websites on home computers is often slow and frustrating. Moreover, local calls are not free generally and so the customer has to pay every time he checks his balance.
2.8.6. Restricted business.
Not all transactions can be carried out electronically. Many deposits and some withdrawals require the use of postal services. Some banks have automated their front-end process for the customers, but still largely depend upon manual processes at the back-end. For example, the INTERNET customers receive their statements online, but paper statements are also sent by mail. Mail and distribution costs are still necessary as the statements, cheques etc. are still mailed.
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