Technology innovation in banking Essay

Part a

Public Bank Berhad was founded and conceptualized as “ a bank for the populace ” ” by Tan Sri Dato ‘ Sri Dr. Teh Hong Piow, its Chairman. Public Bank Berhad was foremost started its concern in Kuala Lumpur in 1966. The Bank opened a subdivision in Melaka within five hebdomads of its first gap in Kuala Lumpur. In the undermentioned twelvemonth, the Bank continued to spread out its concern to cover Ipoh, Penang and Johor Bahru, covering the Peninsular and by the mid-1980s to East Malaysia. On 1967, Public Bank was listed on Bursa Malaysia Securities and it is known as the Kuala Lumpur Stock Exchange.

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Public Bank Berhad provides assorted banking and fiscal services to single and concern clients in Malaysia and internationally. The services of Bank include nest eggs, current, fixed sedimentation, and foreign currency histories. They besides provide several of loans such as place loans, vehicle funding, working capital loans, loans for the acquisition of assets, undertaking funding, loan bundles, recognition warrant corporation warrant strategies and besides recognition and debit cards. In add-on, Public Bank Berhad has expanded its service offerings over the old ages and go a prima fiscal services supplier. The Bank presently offers a comprehensive scope of fiscal merchandises and services comprising, amongst others, personal banking, commercial banking, Islamic banking, investing banking, portion broking, legal guardian services, nominee services, gross revenues and direction of unit trust financess and general insurance merchandises.

Public Bank Berhad’s uninterrupted profitableness path record shows its strong committedness and capableness to present excellence in supplying banking services to their clients, evidenced by the strongly seeable PB Brand throughout its 47-year journey of growing. The PB Brand is known as first-class client service, prudent direction, strong corporate administration, strong plus quality and sustainable profitableness.

As at the terminal of 2013, Public Bank Berhad is the 3rd largest banking group by plus size with entire assets of RM305.73 billion in Malaysia. It is besides listed on the Main Board of the Bursa Malaysia Securities with a market capitalisation of RM68.67 billion in the same twelvemonth and it is graded 2nd among all the public listed companies on Bursa Malaysia Securities in footings of market capitalisation.

Public Bank Berhad continues to gain awards and grasp for its sustainable fiscal public presentation and first-class direction. The Bank was honored with best bank awards and excellence in corporate administration by national and international publications, including the Minority Shareholder Watchdog Group in 2013. These were in acknowledgment of the Bank’s consistent record of fiscal public presentation and differentiation in the cardinal countries expected of a banking establishment by its stockholders.

Part B

Presents, the engineering invention in the whole universe is become more and more modern and successful. IT and IS besides at as a of import function to help organisations to accomplish their ends in many facets, illustration Merchant/Commercial Bank presents provide E-Banking service to clients for more convenient, as clients can straight reassign fund by utilizing this IS. Otherwise, there are some of the different between modern engineering and the old engineering, the illustration of the factors is clip consume and convenience. In Public Bank Berhad, there are some applications of Information Technology/ Information System during their initial period of embarking into the concern, which is Automated Teller Machine ( ATM ) .

For the initial period of Public Bank Berhad, The services that provide from ATM is to let clients for backdown money in more faster manner. Other than money backdown service, services such as cheque sedimentation and hard currency sedimentation are manage by the front counter staff in the bank, illustration for a organisation who ask for cheque payment is being proceed to the forepart counter to do agreement. The degrees of directions which is front antagonistic staff and Customer Saving Account Department is required to entree the information system in the ATM such as examine the balance enquiry in clients account book, illustration the services provided to update the entire minutess and latest balance in clients Bank Passbook.

Based on the information provided by Public Bank Berhad, in the twelvemonth of 2003, this organisations developed and get down implement the IT which is Cash Deposit Machine every bit long as Cheque Deposit Machine. The major factor of implemented this IT to do the clients more convenient in these services by utilizing a mechanization machine alternatively of line up for the human manual work. Example presents, client can straight lodge their check received by utilizing the Cheque Deposit Machine. In add-on, these information is required from the bank to entree which is Department of Cheque Management. The information is been reviewed and looked through before the section devising determinations, for illustration credence of checks, checks transfer, and acknowledgment of chequesdishonoured. Therefore, it is much easier and convenient for bank officers every bit long as the clients.

Besides that, after the implemented of these IT, users besides can direct do their recognition card and loan payment through ATM, the information is straight send to the Public Bank Card Service and Support Department, illustration the client make their monthly loan prepayment through the ATM by automatically debit their bank history. So that, this information will direct to Public Bank Card Service and Support Department in order to allow them cognize this consumer has been do the payment.

In the nutshell, the engineering in the bank industries is become much progresss and convenient for both party ( Management and Users ) , IT/IS aid organisations success in many aspect such as services. For a organisation, the deficiency of engineering must hold to avoid in current century and civilization because it will take an impact which is incapable to maintain gait with the modern society.

Part degree Celsius

The current application for Public bank berhad is on-line banking system, it besides called e-banking. The online system besides provided on-line foreign currency remittal which mean that Telegraphic Transfer but it is merely for Monday to Friday and the operation hr is from 9.30 am until 3.00pm merely. The e-banking non merely designed for salvaging history, it besides design the system for concern such as private limited company, private limitless company, partnership and exclusive owners.

Furthermore, the e-banking system is provided for 5 different types of history which is nest eggs history, current history, lodging loan history, engage purchase history and gold investing history.

The maps of e-banking are consumers can look into the history balance, reassign fund to another history or transportation to other history but the history was non the public bank history. The consumers can utilize e-banking to make on-line payment for nomadic service and public-service corporation, hunt other information and make the investing. Furthermore, for concern client, they can use loan, and petition for check book.

The e-banking system was provided some services such as petition for check book. In long clip ago, when concern client want to use for checks book, they need go to counter and use it, but now due to engineering progress, concern client merely necessitate entree to online banking and do the application. This information will direct to serve section. When the service section receives an order from the system, they will fix the new checks book for the concern client. Because each of the checks book have different company name, codification figure, branch figure and so on. It need fix for a period merely can direct to concern client. And the service section will go through information for other section in signifier them when terminal of the month, bank demand to bear down some sum for cast responsibility and the check book.

On the other manus, consumer besides can utilize e-banking to make investing. Consumer can easy come in into system and take type of investing you want to make. When all the information complete, it will direct to treasury section. Because exchequer section privation to utilize the money to assist consumer make the investing. In the web site, it besides provided all the necessary information for some company. Consumer can entree the information and make the investing easy. When consumer want to make investing and utilizing history money so the current history section or salvaging history section will have the information and demand to reassign money for making investing. So that, the sum of money that want to make investing demand to subtract from the history.

Furthermore, consumer besides can use public bank recognition card and public bank debit card. After the consumer fill in the personal information, the information will direct to recognition disposal and supervising section. Because of the section needs to see all the information and look into the personal information merely can give the recognition bound for the consumer. The section is command all the recognition control for loan bound and recognition bound.

Part vitamin D

Part vitamin E

The strengths of utilizing e-banking for consumer

When users are utilizing e-banking it is more secure for users compare to utilizing ATM. Because consumer demand go to the bank or any topographic point that have ATM machine, it is easy robbery hard currency and their debit card or recognition card by person. When consumers want to lodge money for person, the money may rob by person. So, when utilizing ATM is non safety for users. Furthermore, when consumers use the e-banking will avoid the robbery by person. Because the consumer will prefer utilizing e-banking to reassign money, do payment and so on. They can avoid travel to bank to make the transportation dealing or pay public-service corporation measure. The personal information will non be easy stolen by person because if utilizing e-banking system, users merely log in into system and make dealing.

The e-banking system is provides for 24hours entree. It is convenient manner for user because if users want to make dealing, users can easy log in to the e-banking system and make the dealing. Consumer can make any dealing between 24 hours. Consumer does non necessitate to wait for the bank operation hr merely can travel the counter or ATM to make the dealing. Consumer can easy entree to e-banking to make payment or use for loan. When consumer face exigency job, they can easy make the dealing with utilizing e-banking. Furthermore, for concern clients can bespeak for checks book without go to bank and use, they can use with utilizing e-banking system.

The most of import of utilizing e-banking is save clip. Consumer no demand go to ATM or counter to make the dealing. It is easy for consumer because don’t attention the users anytime at anyplace to besides can make the dealing. When if you is going at another state and the measure or loan demand to make the payment, users can entree to internet and make the dealing such as payment for public-service corporation measure, recognition card payment. For the concern client, they merely necessitate entree to e-banking system to make payment such as EPF and SOCSO easy. When consumers want to go to other state, so they can purchase the air ticket with utilizing on-line payment.

The failing of utilizing e-banking for consumer

The e-banking system is unafraid but by and large non truly procure because person still can chop another individual history, if the individual truly is a professional in the Information Technology and Information System. User, who set the watchword that is really easy, so might hold opportunity drudge by person. For illustration individuality stealer will easy to chop if the personal information is easy to acquire and the watchword is really simple, after drudge the personal history, they will reassign out the money for them.

If the new online users non familiar with the e-banking system might snap incorrect thing or reassign incorrect history. It may take to loss for the users. It does non hold face-to-face communicating, if users don’t cognize how to utilize e-banking system, user merely utilize a call for client service centre and talk with them but the bank’s staff merely can learn user how to make, but the bank’s staff can non demo to you, because really bank’s staff did non cognize user truly understand and cognize how to utilize e-banking system. Because if you go to counter, the bank’s staff will assist you to make the dealing, but now consumer utilizing e-banking is no any professional organic structure to assist it.

When the e-banking system has bug or system break down will take to a large problem for the user. Because of the users can non entree to e-banking system and make the dealing. For illustration, when the user entree to e-banking and do the dealing but the system will do an mistake such as send to another individual history or the dealing we make did non successful but the system has been deduct the sum from the consumer history. Because in the system has some bug, so that it will take to system mistake.

Part degree Fahrenheit

Failings 1: The e-banking system is unafraid but by and large non truly procure because person still can chop another individual history.

Enhancement / Solutions:

At first, public bank should promote their client to utilize different watchword on different sites or alter the watchword often. Generally, people will make their watchword and portion the watchword one or two watchwords across histories or utilize really simple 1s, such as customer’s favourite names and figure or first pets. Customer should sporadically alter their watchword and public bank should promote their client do non unwrap the bank history figure or watchword to anyone else, and besides on a regular basis look into the history balances and statement to place unusual minutess.

Failings 2: New online users may non familiar with the e-banking system.

Enhancement / Solutions:

First, public bank should supply a clear e-banking user usher for all the clients. For illustration, public bank should supply a simple and clear list of consumer banking minutess in order to do the consumer easy to utilize the system, such as when the client wanted to look into the bank balances, he can merely snap the “Account balance” to see the history item. Second, when client want transportation fund through e-banking system, the system should do two-step confirmation to client in order to guarantee whether this are the correct sum which the client want to reassign.

Failings 3: E-banking system may incorporate bug or system break down.

Enhancement / Solutions:

At first, in order to forestall the “bug” to do the system mistake, public bank should promote their client to put in a personal firewall and effectual anti-virus plan to protect personal computing machine from virus onslaughts or bugs. Following, public bank should ever maintain the operating system updated with the latest security spots, in order to protect against failings or bugs. Furthermore, public bank should develop and keep a recovery and backup system based on entire information engineering, operational and concern demands, these is to guarantee all the client information is still available when holding a system dislocation.

Portfolio Analysis

Undertaking hazard



  • For the E-banking system in Public Bank is high hazard, high benefit.

Scoring Model





Easy to carry on banking dealing




Ease of care




Confident over security facet




Handiness to utilize the system




Final mark


Part g

For our sentiment, the success of the Public Bank is non based on strictly due information engineering such as e-banking, it is still need based on some other factors. By and large, most of the Bankss are utilizing e-banking systems, if Public Bank demands to success in the market, they need based on some factors, such as the involvement rate supplying to their client. Different bank holding different involvement rate, in order to pull client to open their nest eggs or current history, bank have to set the involvement rate which higher than other bank but need to depend on the factor of the supply and demand of the recognition, and besides the rising prices rate which will impact the involvement rate degrees such as the higher the rising prices rate, the more involvement rate will probably to increase. For illustration, the involvement rate of basic salvaging history in Public Bank, if save up to RM 50,000 the nominal involvement rate and effectual involvement rate ( % p.a. ) is 0.35.

Besides that, the 2nd factor is the type of service and the quality of services to their clients. As the basic principal, by bettering the services will make a motivation work clime and environment for both clients and besides employees, such as addition the customers’ enthusiasm for covering with the bank and besides will increase the productiveness of the employees. For illustration, Public Bank can increase the professional degree of employees who straight with clients such as the employees can execute their service efficaciously and expeditiously in order to derive the customer’s assurance. By bettering professionalism and offer a better service that are specific to desires and wants of client, it will pull more client trade with the bank.

Preservation of capital is besides a considered factor. By protecting capital is of import consideration in maximising net income in the long tally because loss of capital will do bank to free new sedimentations. For illustration, the construction and power of the bank’s hazard direction section is the of import standards to protect the capital of the bank.

The last factor is human-centered and societal services. If the bank provides societal service to the local community it will hold the positive consequence on the volume of sedimentations and increase the repute of the bank. For illustration, Bankss will take part in many charitable plants and set plan of engagement in charitable and societal work.

Part H


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