Case Study: Banks Essay Example

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Case Study: Banks

Case Study: Banks

2. Digital Commerce

  • Digital Commerce models used by ANZ Bank

Creating digital commerce solution involves developing a digital commerce site that should begin with identifying the e-commerce model (Mahadavan, 2000). Australian New Zealand Bank currently uses Business-to-Business e-commerce and Business-to-Customer model. B2B model involves online transactions between two business organisations whereas B2C model involves electronic transaction between a consumer and a business company (Trimmers, 2009). New Zealand Bank does online transaction with other business organisation and also with customers.

  • How ANZ Bank would employ digital commerce strategy

Computers have gotten more sophisticated and have given banks the potential for success and have given their customers high expectations. Technological advancement and information technology have made the delivery of baking services more effective thus producing new bases of competition (Bato, 2013). Banks gain critical competitive advantage by using efficient digital commerce strategies and processes. Digital commerce provides banks the competitive edge to be ahead in the banking industry. ANZ Bank can employ differentiation strategy for its online and home banking services. This can be done by offering an extensive web banking option with powerful functionalities where clients can access their banking accounts online with ease and confidence (Trimmers, 2009). An internet platform is supposed to enable all customers with identical needs to undertake business online. ANZ faces a challenge when serving customers with diverse needs (ANZ, 2012). Transformation to online banking has been brought about by growing global markets. Digital commerce for ANZ became necessary for customers to avoid hectic paperwork (ANZ, 2012). The bank needed to offer online services in order to keep up with customers’ need and be competitive on financial market. ANZ can use digital commerce differentiation strategy in different ways. It can differentiate itself through web and telephone payment capacity and customised online payment application platform.

Differentiation strategy can also be in the form of online investment applications for investments. Generally, ANZ can employ differentiation digital commerce strategy that entail multifunctional home banking service. In order to employ differentiation e-commerce strategy, ANZ should first reduce the charges for many online services in order to stand out from its competitors (Bato, 2013). It should also address security issues and should make use of firewalls in preventing unauthorised access for its online services. Its online session should be launched by using password which is selected by the customer. In order for digital commerce strategy to be employed effectively by ANZ bank, the bank should be financially viable. ANZ would be faced with challenges when employing digital commerce strategy (Fraser and McDonald, 2010). The Australian New Zealand Bank is likely to face a challenge involving potential customers not trusting its website. Potential customers tend not to trust sites they just arrive at and it will be challenging to make these customers change their mind (Fraser and McDonald, 2010). Security concerns may also come up as hackers can use the online website to defraud customers. In addition, the implementation of digital commerce strategy requires a lot of resources and commitment for it to be effective.

3. Business process has changed in banks

In the recent years, many banks have started using internet in delivering traditional products and services to customers and other businesses (Scollary, 2002). Banking sector is embracing digital commerce and conducts most of its activities and processes online over computer networks in order to expand its market, reduce its expenditures and costs, improve customer service and improve productivity. The 21st century has brought about convergence of computing, information technology and knowledge (Chou, Lee and Chung, 2002). The growth of the networks together with the falling cost of computing power has led to the growing use of technology. In the banking sector, the advancement of technology and information technology has changed the banking services as it has changed from traditional banking services to digitised banking services. Fundamentally, it has already made changes in the internal accounting systems of banks and it is currently changing the delivery of banking services and how banks interact with its customers (Chou, Lee and Chung, 2002). Globally, banks are always looking for a technological solution to meet the needs of the rapidly changing environment and customers. For this, it is clear that technological changes and information technology is changing the banking sector to a greater extend. The banking institutions that have the ability to invest in information technology will be able to dominate in the competitive market. Banking sector is convinced that investing and integrating technology is very critical and its potential benefits on the banking industry sector are enormous. Advances in information technology have brought about enormous changes in the banking industry with regard to the officers, employees and customers of banks (Libf, 2007).

Information technology allows the delivery of banking services more effectively and conveniently thereby creating competitive advantage. With information technology, banks can have direct marketing and customer service environment coupled with streamlined business processes (Scollary, 2002). For instance, consistent management and decision support system offer banking institution competitive edge in the global market. Banks take into consideration customer’s need for new products and services and thus plan to make them available. Technology and computer based information system has increased the degree of competition and forced the employment of new technology for the purpose of satisfying their customers. Banks have developed and employed various technological solutions such as electronic banking which enable banks to offer corporate customers with software such as Graphical User Interface that enable them enquire about financial transactions, cheque book issue and rates of transactions without necessarily visiting the bank (Libf, 2007). Technology in the banking sector has brought about telebanking which provide a 24-hour service with regard to balance enquiry and transactions in the account. On the other hand, anytime banking involves the installation of ATMs that offer services such as non-stop cash withdrawal, enquiry facilities to name a few. In addition, banking business processes have changed with the advancement in technology with regard to increasing productivity among employees. Technology and computer based system enable accurate computing of time-consuming jobs including interest calculation. Automatic printing of deposit receipts, pass sheet free the banking staff from performing such cumbersome jobs which give them an opportunity to focus more on the needs of the customers (Libf, 2007).

4. Enterprise computing

  • Enterprise computing: CRM, ERP, EAI, SCM

Enterprise computing is described as the information technology which is business oriented and that is often precarious to an organizations’ operation. Enterprise computing incorporates a number of enterprise software inclusive management of database and management of relationships to mention the least (Larry, 2010). Therefore, enterprise computing is an assortment of big business software keys to common problems which are inclusive of resource management and streamlining operations. Enterprise computing is often at times traded to business workers as a whole platform that can be used widely throughout an institution and finally modified by the workers within every field. CRM commonly known as Customer Relationship Management is a program that involves every feature of collaboration that an institution has with its customers. It can either be sales or even sales-related. Customer Relationship Management can be used to manage both business to business relationships and business to customer relationships (Larry, 2010). Using CRM, the information that is tracked includes contacts, sales leads and contract wins to mention a few. Furthermore, CRM is used to provide answers to businesses by offering services or products based on the customers’ need and also by offering more efficient and better services to their customers. ERP is commonly referred to as Enterprise Resource Planning and is defined as the business operations management software that enables an institution to be able to utilize a system of combined software in order to take full control over the business and automate any form of ‘back office’ tasks which are directly linked to technology, services and human resources (Shroff, 2008). Therefore, EPR combines aspects of an institution which are inclusive of product planning, marketing and also product development.

As one of the enterprise applications, EPR is designed to be utilized by big businesses and often at times needs motivated teams to be able to modify and evaluate the data and also to be able to take care of upgrades and dispositions. EAI is also known as Enterprise Application Integration. This is referred to as the unrestricted division of data as well as business operations throughout the entire networked software or even data sources in an institution (Shroff, 2008). Most institutions invest in acquiring EAI in order to streamline operations and hence keep all the features of the enterprise linked. EAI has been categorized into four main groups. These are, database linking which deals with sharing and duplication of information whenever needed. Another group is application linking. This deals with sharing of business operations within an institution between two or more applications. The third group is data ware-housing. This group deals with extraction of data from different data sources and forwarding them to definite databases for evaluation (Shroff, 2008). The final group is common virtual system. This group deals with bringing together of every aspect of enterprise computing so that they come out as a combined application (Shroff, 2008). Finally SCM, also known as Supply Chain Management is the oversight of materials as well as information and finances as they are transferred from the suppliers to manufacturers to retailers and finally to the customers. SCM entails coordination and integration of the above flows within an institution and also among institutions (Shroff, 2008). SCM has the main objective of reducing inventory with an institution. In addition, SCM has two main types of software. These are planning and execution applications. Planning applications make use of innovative algorithms to derive the most efficient way to completely fill an order whereas execution applications are used to track the physical status of the deliveries. Also execution applications are used to manage materials as well as financial information with which all participants take part in (Shroff, 2008).

  • Type of enterprise computing used by ANZ

In ANZ Bank, Customer Relationship Management software is utilized effectively to gain access and insight to customer behavior and provide value to their customers. It has been able to utilize CRM to provide better customer services and has made it more efficient in selling their products as well as helping their members of staff close deals quickly. CRM has enabled the bank get a hold of what information they really need from their customer and how to well utilize it (Ryan, 2010). For example, the bank has kept track of their customers’ information which involves their different life stages which has enabled them to be able to market some of their banking products like mortgages. This software has also enabled them to analyze all the possible ways their customers’ information comes into a business. In addition, it has been able to analyze when and also how their customers’ data and information are deposited and how they are constantly put to use (Ryan, 2010).

5. Information security

  • Types of security threats faced by bank websites

First, mobile banking is at risk of security threats and mobile security is increasingly challenging for banks as controls established to protect online banking do not work well when applied to mobile. For instance, Australia New Zealand bank and National Australia Bank have suffered security flaws with regard to mobile banking. Mobile malware is an emerging security threat and attracts such as Zeus aimed at mobile phones have posed threat to mobile banking services (McGlasson, 2011). In addition Trajan attacks are another type of threat affecting banking e-commerce sites. A Trajan is a destructive program which appears as a harmless application. A number of trajons claim to reducing computer viruses but instead leave it vulnerable to attacks. Another threat to bank website is phishing. Phishing is the fraudulent obtaining of sensitive and personal information including passwords and credit card information (Sanchez, 2010). This is done by sending of emails impersonating a trustworthy sender and customers of online baking websites are potential targets. Another security threat facing bank websites include viruses. They are software that attach themselves to a program. While active, the virus can reproduce and can tie up resources like memory cards and flash disks causing problems. Banks are affected by viruses send via email massages which reproduce and distribute themselves compromising the security of personal information of the customers. Keylogger is another security threat facing bank websites. If fraudster installs keylogger software on a device on which a client is accessing online banking, the keylogger software copies to a file. The sensitive information is then captures that can be used for fraudulent purposes (Sanchez, 2010).

  • Technical, data and human safeguard

Technical safeguards against website security threat encompass the hardware and software of information system which is made up of integrated passwords, physical authentication as a means of protection. Anti-virus software assist in detecting any malware through system scanning that prevent system breach. Technical safeguard can also involve installing software only from trusted sources and keeping the anti-virus updated with the latest definition (Sanchez, 2010). Technical safeguard include the use of firewalls, identification and authentication and application design to name a few. Data safeguards protect databases and data administration outline data policies. Fundamentally, database administration works hand-in-hand with data admin to develop data user rights, functions and responsibilities. These rights are authenticated by user passwords. Encoding is possible by coding the data thereby it is necessary to have a third party data decoder and encoder key in an event where the original key is compromised (McGlasson, 2011). Data safeguard may involve backup and recovery, data rights and responsibilities, passwords and encryption. On the other hand, human safeguards are employed to prevent malicious human behaviour that may lead to security threats. Human safeguards activities may involve thorough screening measures during hiring, recommendable training of personnel, procedure design, assessment and education of personnel about security measures coupled with enforcement of security policy. Safeguards must exist for both employees and non-employees by the implementation of passwords, hardening websites and help desk procedures. In addition, under human safeguards, banking staff must be accountable for security intervention and should take part in activities such as avoiding opening emails from unknown senders and avoiding using computers from unknown sources to access accounts online to name a few (Sanchez, 2010).

6. Comparison between ANZ and NAB websites

  • Is there any differences in the business processes of ANZ and NAB

ANZ operates under a number of different brands including UDC Finance, Direct boking to name a few. The bank provides various financial services like banking services, payment solutions, Asset finance, foreign exchange, insurance, credit cards etc. (ANZ, 2012). On the other hand, National Australia Bank operations are divided into a number of services and products including business banking, personal banking, corporate functions, wholesale banking, syndicated lending, advice on debt structuring, trade finance to name a few. ANZ and NAB offer their services using different processes. For instance, ANZ bank have come up with ANZ small Business hub that enable their customers access a range of tools and ANZ FastPay which is an app that enable customers do their transactions via their mobile phones among others (ANZ, 2012). However, the two banks have continuously enhanced their performance by using information technology to their advantage. They offer online banking as extended services taking into consideration the hassles of going to the bank frequently.

  • Do they offer their products in different ways

ANZ and NAB offer their products in different ways. Both banks serve both personal and corporate clients. However, they offer such products by using different forms of saving accounts, credit cards, financial planning, and loans among others. In addition, the two banks make use of online banking in different ways as both have specialised online products that serve the needs of their customers (ANZ, 2012).


ANZ 2012, Financial Services Guide. Australia and New Zealand Banking Group Limited, ABN 11005357522, p. 1-20.

Bato, V 2003, Application of E-Commerce in Banking Industry, Harvard Business Review. P. 23-54.

Chou, Y., Lee, C., and Chung, J 2002, Understanding m-commerce payment systems through the analytic hierarchy process, Australia Management Review, p. 111-173.

Fraser, J., N. Fraser and F. McDonald 2010, “The strategic challenge of electronic commerce”, Supply Chain. p. 112-187.

Larry, R 2010, Bank on the power of Cloud-based services, Hewlett Packard Enterprise: Business white paper, p. 2-12.

Libf 2007, Information technology data communications and electronic banking: Diploma in banking technology (DBT), Mumbai, Macmillan.

Linda, M 2011, Top 9 Security threats of 2011, Banking Security, Australia review. p. 12-24.

Mahadavan, B 2000, Business models for Internet-based e-commerce, California Management Review, Vol. 42, no. 4, p. 55–69.

Michael, S (December 9, 2010, The 10 most common security threats explained, Retrived from,

Scollary 2002, Electronic Commerce Benefits, Challenges and Success Factors in the Australian Banking and Finance Industry, Kalakota, p. 112-231.

Shroff, F 2008, Modern banking technology, New Delhi, Northern Book Centre.

Timmers, P 2009, Electronic Commerce: Strategies and models for Business to Business Trading, John Wiley and Sons Ltd.