Banking Technology: Improving its Potential through Better Management

Abstract

Discusses the role of technology in financial institutions. Suggests that, given its cost and operational importance, technological change must be carefully planned and managed and integrated with business planning. Technology′s role has increased from back‐office support to a wider role incorporating product and service development and delivery and is becoming increasingly vital in increasingly competitive financial markets. However, a “technology race” has also developed which is expensive and may yield a poor return on investment.

A Two‐Step Estimation of Consumer Adoption of Technology‐Based Service Innovations

“…Reliability refers to the degree to which a consumer believes a new technology will perform a job consistently and accurately. Reliability is considered to be critical to whether or not a consumer decides to adopt various technology-based services (Health Care Strategic Management 1997;Mohamed 1992;Simms 1999;Smith 1996;Takac and Singh 1992). Lewis (1989) applies the SERVQUAL scale to the bank-marketing context and confirms that reliability cannot be ignored in a consumer's evaluation process of technology-based financial services.…”

A Profile of Adopters and Non-Adopters of Ecommerce in SME Professional Service Firms

“…Chong (2001, citing Fink andKazakoff, 1997;Hart and Saunders, 1994;Iacovou et al, 1995;Kettinger, 1994;Pennings and Harianto, 1992;Robertson and Gatignon, 1986;Tan, 1998;Takac and Singh, 1992) provides an excellent discussion of some of the external environment factors likely to influence the successful adoption of EC. These include: environmental uncertainty; pressure from other trading partners as well as other industry-specific competitive pressures; government influences; critical mass; issues related to infrastructure; and technological standards (see Chong, 2001, p. 5 for a fuller discussion).…”