Presentation of the Case
I. Point of View
The Philippine National Bank (PNB), the country’s first universal bank, is the fifth largest private local commercial bank in terms of assets as of December 31, 2009. Through the years, PNB has led the banking industry with its pioneering efforts in the Remittance Business for Overseas Filipino Workers (OFWs) as well as the introduction of many innovations such as the Bank on Wheels, computerized banking, ATM banking, mobile money changing, Domestic Travelers’ Checks, and on-line electronic data processing. PNB has the biggest number of overseas offices and one of the largest domestic branch networks among local banks. PNB Internet Banking is one of the electronic channels being offered to PNB account holders. It allows you to do your routine banking transactions like paying your bills, transferring funds and inquiring about your account balance securely through the Internet. It is a facility wherein clients can securely and effectively take control of their corporate finances through the Internet. It also allows the user/s to manage multiple employee access to accounts in accordance with internal policies. The implementation of a successful e-banking strategy is far from being straight forward, as there are numerous inherent difficulties/barriers. The Internet as a channel for services delivery is fundamentally different from other channels such as branch networks or telephone banking. Therefore, it brings up its own unique challenges that require innovative solutions. Thus, a logical step for the management of banking related organizations may be to fully understand the organizational barriers inherent in e-banking. The Internet has not only created previously non-existent opportunities for cost effective, all time available financial services, it has also increased the significance of a number of risks which did not exist or were not significant in the past. Furthermore, a number of change management issues usually associated with any new technology implementation are compounded simply because some applications such as e-banking have a greater and more immediate impact on the organization. This study will discuss some of the most common problematic issues in e-banking implementation and management. The main focus will be on those issues which pose considerable risks to e-banking projects and may prevent banks from achieving their desired e-banking related goals. These include: traditional structures which some banks still have and which are unable to respond to agility required for e-banking, resistance from employees, legacy systems which are an obstacle to the integration of systems, security issues, new and complex regulatory issues, and project management problems.
II. Statement of the Problem
The study aimed to determine the effective way of accessing internet banking and securing accountholder’s account. Specifically, it sought answers to the questions: 1. How secure is Internet Banking?
2. Can anybody else access one’s accounts through the Internet Banking? 3. Is it advisable to access Internet Banking in public areas?
The study’s view is that to deal with these emerging threats effectively, financial institutions need as a minimum to have:
• Assurance of security and confidentiality
• Protection against unauthorized access or use
• Protection against anticipated threats or hazards
IV. Area of Consideration
SWOT ANALYSIS E-BANKING
• Customer access to information 24 hours a day
• Timely access to information
• Ability to offer a customer more than one method of retrieving information • Sophisticated technology systems
• Diversity helps to capture different types of market. • The ability to cut internal cost due to advanced technology • Increased efficiency due...
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