1.Select and describe a recent major decision / problem / issue tackled by your organisation or one with which you are familiar (module tutor will advise on this where necessary), including a description of the approach the organisation took to tackle it.
2. Critically appraise the approaches used by the organisation, suggesting how they could have been improved, or other approaches that could have been used, and what decision making and problem solving techniques would have been most appropriate for this decision or problem
3. Discuss the way in which solutions and decisions generated for question two would best be implemented for the organisation to achieve maximum success.
The Bank X is actually the Hong Leong Bank Berhad for non-disclosure purpose. The company was founded in the year of 1905 (Hlb 2016). The company was listed on KLSE 1994. The bank has head quarter in Malaysia. It has regional branches in China, Singapore, Hong Kong, Cambodia and Vietnam. Till 2014, total revenue, net income and total assets of the company is MYR 4.039 billion, MYR 2.102 billion and MYR 170.4 billion (Hlb 2016).
The aim of this report is to develop an analysis of the decision taken by the Bank X to implement Automated Teller Machine (ATM) switching system in the year of 2015 (Hlb 2016). This new system will help to improve system availability and reduce the downtime of the system. This system will also help to overcome daily downtime due to the issue of cutover. There is also an alternative approach available to replace the old ATM nationwide in order to overcome the issues of downtime due to aging.
It has been found that Automated Teller Machine (ATM) is an efficient global banking management system that is capable of designing and applying transactional business strategies with the help of modern technology. There are some specific features of ATM service that helps to make banking more efficient. They are such as service availability, speed on transactions and time saving for customers. It has been found that performance and service quality of ATM can affect customer satisfaction directly. From the Australian Payments Clearing Association (APCA) it has been found that in the past decade, ATM transaction has grown by 28.1% (from 2006 to 2015). Use of ATM has become widely popular all over the world. In addition, the transaction volume of ATM has increased drastically. On the other hand, cases of disputes also increased significantly for the last few years as well. Larrain et al. (2016) stated that growth of the amount of dispute cases has attracted the attention of bank management to enhance the service quality. It has been found that the root cause of this ATM problem is due to the instability of different system. Despite many banks are offering numerous of banking products in a rival marketplace, banks rather to pay more attention on service quality in order to gain a competitive advantage. Along with the improve of the service quality, Bank X has to try to overcome all these issues and meet their goal by applying a brand new and high tech system like ATM switching.
The major function of ATM switching is that it helps to transport information from an incoming ATM channel to an outgoing logical ATM channel. Logical approach has been used by the Bank X to implement ATM switching system. Konheim (2016) stated that, it is a physical inlet or outlet that can be characterized by physical port number. It has been found that ATM switching system helps the company to ensure maximum ATM uptime. Phan and Nham (2015) stated that, it can differentiate Bank X with its innovative products and services available for the consumers right there in the ATM. Key differentiator (method) of this switching solution is that it helps to develop opportunities to add mobile payment and internet transition with the switch. It also helps to incorporate value added services across various channels. This approach helps to develop a full card management solution. It helps to issues, acquire and develop cards along with prepaid card solution and establish a fraud prevention system (Al-Mudimigh 2015).
There are some major features (tools) incorporated with this ATM switching approach. They are such as:
Hence, ATM switching system can be considered as the most justified approach that can reduce downtime issues.
The ATM switching solution of the Bank X comes with a huge collection of products and services that an ATM cannot provide. It can help the customers of Bank X to migrate transactions from a branch as it helps to authorize the ATM to show all account information just on a single screen. The major strengths of this high tech system is that, it can help customers of Bank X to show and pay bills, sending money to anyone from and to an ATM (Jegede 2014). In addition, it has been found that, using this ATM switching function, customers can get cash out from a specific organization without visiting its branch. Customers of Bank X can accept an offer from ATM and get loan instantly. Cheong et al. (2015) stated that this ATM switching system has all the features that can enhance the customer’s experience. Some major strengths of this new system have been mentioned below:
However, there are some issues of this ATM switching technology have been found. This technology helps to improve the service quality of the company Bank X. However, it has been found that this technology still has some security threats. Perez et al. (2015) stated that ATM switching technology includes different types of information in the form of data, video and voice that can be private and sensitive in nature. These types of information are vulnerable to attack from intruders. There are some potential security threats that this technology has to face. They are such as unauthorized access to information, alteration of information, denial of service and repudiation of information. They are potential threats to the confidentiality, access control, authentication, integrity and non-repudiation of Bank X.
It has been found that security is the major issue that this approach has to face. Ahmad et al. (2016) stated that in order to deal with different variety of attack, two types of ATM security measures can be taken. They are such as physical security and logical security measures. Implementation of these two types of security measures can help to improve effectiveness of the ATM switching approach implemented by the Bank X. They are mentioned below:
Larrain et al. (2016) stated that physical ATM security has its significance in the cases where the cipher keys reside in the terminals. It has been found that in the absence of proper physical security intruders can probe for a key or change its value. It can reduce confidentiality of the secrete parameters used by Bank X for ATM switching approach. There some techniques such as smoke canisters and dye-markers can be used. In addition, there are various other methods can be introduced to increase physical security measures of this approach. They are such as:
Fitriyani et al. (2016) stated that networking has a significant role to play in the ATM functions while customers swipe their debit cards, enter PIN and details and then sent the RDBMS for the purpose of validation. In order to perform logical thefts and frauds, hackers intercept this information. It is equally applicable to this new ATM switching system due to the absence of logical security measures. There are some specific techniques can be implemented to improve efficiency of this ATM switching system. They are such as:
An alternative approach available is to replace the physical ATM nationwide to overcome the downtime issue due to aging. Sivamangala (2015) stated that loss of ATM uptime in old ATMs can make customers unhappy, frustrated and disappointed. In these cases, customers move their bank account to other banks, where they can find reliable and dependable ATM services. For this reason, a bank can lose their reputation in the eyes of customers as reliable financial institution (Fitriyani et al. 2016). Replacing old ATMs with latest one can help to reduce ATM downtime drastically (Kibona and Mgaya 2015). In appropriate temperature control, unclear touch screen and issues in billing (soggy bills, taped bills, torn bills and dogged eared bills) can be solved by using this approach. In the new ATMs, all types of currency are removed from the billing mix. It will help the company to reduce jams and down time (Kibona and Mgaya 2015). However, replacing all the physical ATM nationwide can cost the company a huge amount of money. This approach can cause long term benefit for the purpose of reducing the downtime.
There is also another approach that the company can use. The ATM service contract of the company has to include scheduled maintenance and preventive service. Kibona and Mgaya (2015) stated that regular scheduled preventive maintenance service can be scheduled for the time when the branch is slow and the time when the ATM has decided to go down. Every ATM has various mechanical parts like belts and rollers. These parts break down over time. Hence, Bank X has to replace all these items before they fail. It will drastically reduce the down time. This approach can be used to temporarily reduce the down time of the ATM service of the company Bank X.
3. Conclusion and Recommendation
After analyzing all three approaches, it has been found that implementation of ATM switching system can be considered as the most effective and justified approach. There are some attractive features of this system that makes it more reliable. These features are such as opening account instantly, personalized international and domestic transfer, recharging prepaid card, FX cash withdrawal, card to card transfer, and person to person mobile payment, card less ATM access and Electronic cheque purchase and redemption. There are some major reasons for which this technique has become more reliable, accessible and accurate. The managers of Bank X provide the opportunity to operational staffs to monitor and manage all the ATM networks from a single point. The distributor of Bank X ATM enables the bank’s staff to gather or deploy any file into the part of their ATM Network. The Bank X ATM Studio enable the bank to remotely develop and launch its own screen on ATM to improve its branding and in add product mix easily and quickly. In addition an application named Bank X ATM Client is installed along with the ATM switching system.
It has been found that the implementation of ATM switching system can help to improve some specific aspects. They are such as ATM uptime statistics, loan and bill payment system, creating new installer. It will support card less deposit functionality on ATM. It will also provide enhanced connection. It will provide RKL with direct connection. It provide personalized product offering that will offer an ATM experience to customers that goes beyond the expectation of customers. It has been found that, this approach has some security issues. Implementation of physical and logical security measures can help to enhance efficiency of this approach.
In summary it can be mentioned that the Hong Leong Bank Berhad, which is also known as the Bank X has some accessibility problem and ATM down time issue. These issues of the company can be solved by implementing ATM switching technique. Some alternative approaches also available can help to solve the issue of the company as well. They are such as replacing physical ATM national wide due to aging. For this reason, ATM switching technique is considered as the most suitable one. However, this approach has some security issues. Solving these issues can help to reduce down time and increase efficiency of this approach.
Reference List
Adepoju and Alhassan. 2010. Challenges of Automated Teller Machine (ATM) Usage and Fraud Occurrences in Nigeria – A Case Study of Selected Banks in Minna Metropolis. Vol 15. Journal of Internet Banking and Commerce, pp 2)
Ahmad, N., Rifen, A.A.M. and Wahab, M.H.A., 2016, November. AES Cardless Automatic Teller Machine (ATM) Biometric Security System Design Using FPGA Implementation. In IOP Conference Series: Materials Science and Engineering (Vol. 160, No. 1, p. 012113). IOP Publishing.
Al-Mudimigh, A.S., 2015. E-business strategy in an online banking services: a case study. The Journal of Internet Banking and Commerce, 2007.
Charles Mwatslka. 2014. American Journal of Applied Mathematics and Statistics. Vol 8. American Journal of Applied Mathematics and Statistics, pp 218-227.
Cheong, M.L., Koo, P.S. and Babu, B.C., 2015, August. Ad-hoc automated teller machine failure forecast and field service optimization. In 2015 IEEE International Conference on Automation Science and Engineering (CASE) (pp. 1427-1433). IEEE.
Fitriyani, A., Sfenrianto, S. and Wang, G., 2016. Examining the Security Issues of Automated Teller Machine Based on Revised Technical Acceptance Model. TELKOMNIKA (Telecommunication Computing Electronics and Control), 14(4).
Hlb 2016. Hong Leong Bank Berhad [online] Available at: https://www.hlb.com.
[Accessed 28 Dec. 2016].
Jegede. C.A. 2014. Effects of Automated Teller Machine on the Performance of Nigerian Banks. American Journal of Applied Mathematics and Statistics, pp 40-46.
Kibona, L. and Mgaya, G., 2015. analysis of the attitude customers hold towards the use of automated teller machines (ATMs). Analysis, 2(4).67-75.
Konheim, A.G., 2016. Automated teller machines: their history and authentication protocols. Journal of Cryptographic Engineering, 6(1), pp.1-29.
Larrain, H., Coelho, L.C. and Cataldo, A., 2016. Managing the Inventory and Distribution of Cash in Automated Teller Machines Using a Variable MIP Neighborhood Search Algorithm.
Nachimuthu, R., Pillai, A.P., Nambiar, N.R., Manohar, P., Thamaraiselvan, S., Km, G. and Sivamangala, K., 2015. prevalence of multi drug resistant strains on touch screen of automated teller machine. Asian Journal of Pharmaceutical and Clinical Research, 8(2), pp.409-411.
Perez, B., Lenker, J., Steinfield, E., Subryan, H., Salmeri, M., Reedy, T. and Thomas, M., 2015. A Cross-Sectional Study Comparing the Usability of Two Automated Teller Machines Across Diverse User Groups. American Journal of Occupational Therapy, 69(Supplement_1), pp.6911520074p1-6911520074p1.
Phan, C.A. and Nham, P.T., 2015. Impact of service quality on customer satisfaction of automated teller machine service: case study of a private commercial joint stock bank in Vietnam. Business: Theory and Practice/Verslas: Teorija ir Praktika, 16(3), pp.280-289.
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