Analyze TWO (2) internal factors and TWO (2) external factors that may affect the system development process.
Question:
- Analyze TWO (2) internal factors and TWO (2) external factors that may affect the system development process.
- State THREE (3) possible tangible benefits and THREE (3) intangible benefits of implementing a mobile banking system.
- Based on your opinion, discuss any THREE (3) damages that the bank could face if someone broke into the mobile banking system.
- While implementing a mobile banking system for the banking industry, do you think that a contingency plan is needed? State and explain TWO (2) major components of a contingency plan.
The earliest banks kept customers’ money and valuables in vaults, and each bank dealt only with its customers’ financial needs. Financial data networks were then created to support an interconnected banking system that allowed the transfer of funds electronically. Still, customers needed to visit the bank and speak with a bank teller to deposit and retrieve funds. Next, automatic teller machines (ATMs) extended the electronic banking system to customers and provided the convenience of banking in numerous locations, including out of town. More recently, banking services have extended to the Internet and Web, where a substantial number of bank transactions occur today. Because of online banking, ATMs, and direct deposits, bank customers rarely have to visit the bank.
The latest trend in computer-based information systems designed for banking is called mobile banking. Mobile banking provides banking services such as transferring funds, paying bills, and checking balances from cell phones.
The advancement of technology and the rise of smart device ownership in Malaysia has eventually increased the exploration of mobile banking services. According to a survey done by InMobile (2011), there is more than half of Malaysians use mobile to access to the web. According to Bank Negara Malaysia, the number of mobile subscribers is at a 25.2 percent penetration rate of the population. Currently, mobile banking services offer lots of services concerning account information, Payment and transfers, Investment, Support, and Content services (Maybank2u.com). In 2006, M2U mobile was introduced for those with GPRS/3G mobile phones. The phenomenon followed by CIMB Bank Berhad and others. List of banks that have mobile banking services in Malaysia are as follows; Al Rajhi Banking & Investment Corporation (Malaysia) Berhad, AmBank (M) Berhad, Bank Islam Malaysia Berhad, Bank Simpanan Nasional, CIMB Bank Berhad, Citibank Berhad, Hong Leong Bank Berhad, HSBC Bank Malaysia Berhad, Malayan Banking Berhad, OCBC Bank (Malaysia) Berhad, Public Bank Berhad, RHB Bank Berhad and Standard Chartered Bank Malaysia Berhad.
When considering mobile banking, many customers are concerned about security. Sending private financial data over wireless networks poses more risk than sending voice and text communications. The method of financial services via mobile devices with telecommunication network make customers justifiably nervous and no confident to use the mobile banking technology. Each bank have their own protection way that may differ with other banks. As very few incidents of mobile banking the risk are still unknown and security action are undefined.
The main challenges in mobile banking are to convince and educate customers on safety usage and the benefits of mobile banking technology. The relevant issues related to mobile banking technology are skills, safety of usage and confidentiality. There exists risk of failures of technological advancements that may cause insecurities to users. Customers are reluctant to use mobile banking because they have fear of privacy breach across telecommunication network. The anxiety of broken and slow internet connection during transaction and possible loss of their money is one of customers’ concerns. Mobile banking requires internet connection to enable success transaction. For those who are in rural area, they will have difficulties accessing the mobile banking.
It illustrates the difficulties of getting customers to adopt new systems and disprove the notion that “if you build it, they will come”. Companies must invest time and resources to make customers aware of the advantages and safety of mobile banking. If catches on, mobile banking will pave the way for more electronic wallet call phones services. Over the next decade, it is expected that the cell phone will become a user interface to thousands of different computer-based information systems.
Management Accounting Information for Decision-Making and Strategy Execution
ISBN: 978-0137024971
6th Edition
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young