Welcome To Our Presentation By Trudi Diamond Megan Berger

The Effect Of Communication Technology On The Banking Industry

Culture of Banking Industry Two main areas of change:   Product and service provider ~ ~ Used channel of interpersonal communication ~ ~ To an organisation that has incorporated forms of interactive automated delivery devices

Culture of Banking Industry Two main areas of change:  Rapid growth in technology of computers and telecommunication devices

Historical Banking Customers interacted with banks through means of face to face communication From banks point of view this was very important because: ~ ~ Opportunity to provide tailor-made customer service packages ~ ~ Opportunity to sell customers tailor- made banking services Geographical boundaries ~ ~ Limited to local vicinity

First Signs Of Change 1939 Evolution of automated teller machine (ATM)

Luther George Simjian 1939 Evolution of automated teller machine (ATM) Bankograph ~ ~ In the wall mechanical machine ~ ~ Only allowed customers of NYFNCB the means of: - Depositing cash - Depositing cheques - Or paying utility bills ~ ~ Use of Bankograp h confined to normal banking hours

Technological Innovation Of The Bankograph

Rejection Of Technology ~ ~ Lack of Acceptance to use machine by preferred customers - Personal preference - Uncertainty in relation to security of their money ~ ~ Customers using the machine were: ~ ~ Prostitutes Gamblers

John Shepherd-Barron ~ ~ Johns invention First cash only dispensing machine - Incorporated features which facilitated afterhours banking - Pre-paid single use tokens

Limitations of the 1967 Invention ~ ~ Purchase token during banking hours ~ ~ Limited funds holders couldn’t use machines ~ ~ Lost and / or stolen tokens - No tracking - No refund

James Goodfellow Today's terminology of an ATM “A computerised telecommunications device that removes the element of a human clerk or bank teller, but provides customers with the ability to access and make financial transactions in a public space.”

James Goodfellow ~ ~ James’ Invention Reusable plastic cards - Encoded magnetic strip - Pin stored code - Transaction information electronically stored on banks data base

Advancements in Communication Technology ~ ~ Advantages - First networking ATM - Flexibility for banks in terms of placement of ATM - Cost of processing transactions became cost effective for banks ~ ~ Disadvantage - Older consumers reluctant to embrace technology

Advancements in Communication Technology ~ ~ Environmental Advantages - - Utilisation of affiliated banks ATM - - Eftpos machines - - No longer require cash

~ ~ Environmental Advantages - Utilisation of affiliated banks ATM - Eftpos machines - No longer require cash ~ ~ Major Disadvantages - Card skimming - Identity thief - ATM assaults Advancements in Communication Technology

Conclusion ~ ~ Advancements in communication technology - Significantly altered the culture of banking industry - Rapid growth of computers, telecommunication devices and technology - Reordered the power relationship within the banking industry Warning “The power of technology will be and always has been particularly influential because it acts as both a threat and an opportunity to banks”

Thank you! Any Questions?

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