B ANKING I NFORMATION S YSTEMS

1. BANKING INFORMATION SYSTEMS LECTURE 3

2. Future Trends •  The next developments in e- banking will involvenew products and services that were notfeasible in traditional banking models. •  This could involve enabling instant paymentsusing mobile devices, or tools to help peoplemanage their multi-bank financial portfolio,simultaneously.

3. Future Trends •  Internet banking may also become moreviable as the functionality of e-banking systemsgrows, and customers adapt to the new ways ofconducting their financial activities. •  International banking might become a reality forordinary consumers as banking paymentssystems are increasingly harmonized acrossborders.

4. Future Trends •  E‐banking has the potential to provide moreopportunities for banks to develop mutuallysatisfying, tailor made services to enrichrelationship with customers. •  As technology evolves, the opportunities to extend the relationship beyond what is possiblein the physical world continue to grow and willonly be limited by a bank’s ability to innovate orcommitment to e-banking.

5. Future Trends •  The use of financial decision support tools in e‐banking is also set to grow. •  The experiences of many e‐banking users with thesetools have proved unsatisfactory: offering onlineadvice tools, people often have little idea of thebenefits such tools could bring. •  Banks must promote the availability and use of suchtools, and educate consumers about their benefits.

6. Financial Management Tools 1. UBS Pay 2. UBS BESR e‐list 3.WebCalculator 4. PayPen 5. GIROMAT 130

7. UBS Pay •  This software allows entry and management of payments without connecting to the Internet. •  UBS Pay helps when entering payments abroad by enabling selection of the most cost-efficient order type. •  Payment orders are then sent collectively to UBS via UBS e‐ banking in just a fraction of the time it takes to enter them directly online. •  With a user‐friendly graphical interface, archiving and analysis functions, all of a user’s executed payments and beneficiaries’ details may be accessed at any time. •  A number of export options also simplify the transferring of data to MS Excel and MS Money.

8. UBS Pay

9. UBS BESR e‐list •  UBS BESR e‐list is ideal for small and medium-­‐sized enterprises or individuals who just need a simple accountsreceivable system with integrated invoicing functions. •  It manages the collection of receivables, within Switzerland using banking payment slips with referencenumber (BESR). •  The new UBS BESR e-list software replaces the old paper accounts receivable list and makes a long process automatic and quick.

10. WebCalculator •  You can use the WebCalculator for stock exchange transactions to figure out quickly and easily the brokeragefees for transactions you are planning or you have alreadyexecuted. •  Depending on the service package, it is available at a reduced price and includes the UBS investment advisoryservice, or may be purchased by professional investors ata price not including UBS advisory. •  In both cases your market orders can be given using UBSe-banking via the Internet or UBS e‐banking using a mobile device.

11. Papen (Video) •  Reads Swiss payment slips easily and quickly.With a quick brush of the hand payment slipmay be imported into the e‐banking systemof the bank or payment software in seconds.

12. GIROMAT 130 •  You can process all Swiss payment slips. •  It can read orange payment slips with thenew or old dimensions. •  The special driver software means no tediousimplementation of interfaces and protocols isnecessary.

13. GIROMAT 130

14. More Future Trends •  Smart cards are also beginning to make their mark in the e-banking field and are expected to play greater role in the future. •  A smart card is a credit card‐sized plastic card with an embedded chip that provides power for multiple uses (I.Dcard, SIM cards for mobile phones, credit/debit cards,benefit claim, health cards, etc.). •  A smart cards is enhanced by PIN verification and cryptography, and the size and power of the chip determine its storage and processing capacities.

15. Future Vision •  Cash and checks may be eliminated in favor ofthe new electronic currency of “credits,” whichwill be much easier to transfer, maybe usingmobile phones. •  Mobile technology, such as the Bluetooth proximity-based data transmission standard, may work with banking systems to enable touchpoints to react intelligently when a customerapproaches.

16. Future Vision •  Developments in biometric technologies may help to deal with the most persistent security issues as well as dealing with customers’ difficulties in remembering many different login keys. •  Schneider (2005) suggest that all of the infrastructure in the world cannot succeed without innovation and the willingness to take risks. •  The ATM is an example of technologies that consumers would never have requested, but nonetheless have been keen to embrace.

17. Future of E-­‐banking •  The future of e‐banking seems secure duethe ever increasing adoption and arrival ofnew technologies to address existinglimitations. •  Major innovations are expected in the area ofe‐banking using mobile phones, in securityprovision and customer services.

18. How to Benefit from Future ICT •  To benefit most from e-banking and related innovations, banksshould : 1. Develop a clear strategy and communicate it throughout the organization. It must be driven by the top management and should take into account the effects of e-banking 2. Have an effective process for measuring performance of e- banking against the pre-determined criteria given in the strategic plans. 3. Take into account the risks that e-banking will bring with it and manage these accordingly.

19. How to Benefit from Future ICT 4. Undertake market research, develop systems with adequate capacity and scalability and ensure that they have adequate resources to meet their commitments and a suitable business continuity plan in case of disasters. 5. Ensure they have adequate management information architecture to help effective and timely decision making. 6. Develop security plans and implement them to ensure information security. This requires acquiring relevant staffexpertise, building in best practice controls and testing andupdating these on frequent basis.