Paper Example on ICTs Impact on Banks and Customers

Published: 2021-06-29 02:47:29
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Harvey Mudd College
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Dissertation results
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The literature review established that the Libyan banking sector has a vital role in the development of Libyas economy. Specifically, this sector is key to the creation of information about potential investment, ICT, trading, risk management and the exchange of goods and services. Each of these functions can influence national savings, and as a result, influence economic growth. Given that the banking sector is vital to overall economic activity in Libya, it is important to understand potential new developments in the banking sector in the area of self-service technologies, i.e. Internet- and E-banking.

This chapter presents a discussion of this research and considers its implications based on the data analysis in the previous chapters. Initially each of the hypothesis used in Chapter 3 are reviewed, and data from the questionnaires is used to support the findings. This is followed by a review of each of the research questions, highlighting the contributions that this study has made.

The introduction of new technologies in Libya has created a greater number of communication channels between banks and customers, which were expected to have a significant effect on interaction processes and relationships. ICT was expected to reduce the number of face-to-face visits and make relationships more formal across the banking sector. Face-to-face visits in Libyan banks are still perceived as necessary, and the maintenance of these face-to-face visits may actually be reducing the negative effects of the more impersonal methods of ICT enabled communication. Therefore, while increasing use of ICTs in the banking sector might have an impact on managing relationships; this impact is complex due to the nature of the Libyan context.

Technology has opened up new markets, new products, new services and efficient delivery channels for the banking industry; Internet- and E-banking are just two examples. As a result, ICT has also provided the banking industry with the ability to deal with the challenges of the new economy. ICT has been the foundation of recent financial sector reforms aimed at increasing the speed and reliability of financial operations and of programs to make the banking sector stronger. As the changes created by these reforms become business as usual, banks will be forced to continue to grow and adapt their ICT offerings (and the associated support services) to remain competitive.

ICTs has had a positive impact on both banks and customers, improving communications, bringing them closer, and facilitating more open sharing of information. The majority of participants said that the Internet has had a positive impact upon their banks facilitating customer access to information about accounts, and increasing awareness of challenges. Technology is also perceived as a useful tool for convenient interactions with banks. The Internet was widely used by participants to interact with banks; however, E-banking was more frequently used for traditional banking interactions. These new methods of maintaining relationships are enhancing the accuracy and speed of interactions between businesses and customers. The ICT applications have created value for both the banks and customers.

The ICT revolution has set the stage for a unique increase in financial activity across the local area. The progress of technology and the development of worldwide networks have significantly reduced the cost of global funds transfer. ICT can facilitate banks ability to meet the high expectations of their customers, who want on the spot, anytime and anywhere banking facilities.

This research attempted to find out how customer relationships in the Libyan banking sector can become more successful with the assistance of ICTs. ICT enabled banking services are expected to bring benefits such as improved product and service quality, improved customer trust, satisfaction, loyalty and higher productivity and improved financial services performance. ICT has been widely used to provide accounting and back office solutions to Libyan banks

More recently, this is expanding to include large-scale usage in services aimed at customers. ICT is also facilitating the introduction of new delivery channels - in the form of Internet banking and mobile banking. The nature of the global banking environment is now such that it is no longer possible for banks to manage their ICT implementations on a standalone basis.

The reasons for customers preferring a particular bank are trust and satisfaction in the bank. This study found a positive relationship between customer satisfaction, customer trust in a banks system, and customer loyalty. It has also established that there is a positive relationship between implementation of ICT and delivery of service. This confirms the decision of many banks that are moving to implement ICT-enabled services to deliver better service, ultimately seeking to improve their competitive advantage.

Most of the participants in this research supported and confirmed that integration of information technology in the Libyan banking sector has a positive impact on the overall efficiency and performance of the bank. In addition to that, it also increased customer satisfaction levels and increased speedy delivery of services. The respondents strongly agreed that it is important for banks to incorporate and implement information technology in their business activities.

Customers are the most important assets of the company. The more the number of customers a bank has the more profits it is likely to generate. Banks which provide internet and mobile services are often preferred because it enables the customers make transactions even when they are not in the premises of the banks. ICT helps in the enhancement, growth and development of positive relationships with customers. Banks can build on these relationships to further increase their customer base and get more revenue. The customers of the bank benefit through the use of these services and additionally, for the banks, they are able to collect data from the interactions with customers. The collection of customer feedback is also enhanced through the use of ICT

The results also show that the quality of service also increases with the use of information technology. This can be attributed to concepts such as E-banking services. Nowadays, most people possess mobile devices. It becomes cost effective and saves costs to do transactions through the phone rather than going to the bank itself.

Most respondents strongly agreed that the use of information technology does accelerate the processes and internal procedures of the bank. It makes works easier. The integration of information technology makes it possible to handle a large volume of work in little time. With regards to the improvement of the performance of employees through the use of ICT, most employees strongly agreed to this. The use of information technology reduces the cost of human energy as well. Most respondents agreed to this. Information technology makes work easier, reduces paper workload and makes light of a large volume of information.

ICT in increasing the customers of the bank

Banks know that their customers require new services and plans to make their work easier. The use of ICT in banks enhances customer satisfaction levels. The customers can make any inquiries with regards to the transactions, their accounts and any other questions without necessary having to visit the banking offices. ICT also enables banking anytime and anywhere. This has enhanced and promoted non-stop cash withdrawal, remittances and the inquiry of services. In addition to that, networking of computerized branches in inter and intra cities has made customers of different branches, as long as they are connected, to transact from any branches. ICT has also made it possible to telebank. All transactions can be made online. These incentives help in increasing the customers of the bank. From the questionnaire, most of the respondents strongly agreed that ICT increased the customers of the bank.

 

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