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According to Geurden, some banks are good at customer management or even in creating customer access points. The banks plan to focus on the customer service area and outsource the other banking functions like creation, running and operating technologies that implement new financial products. Most banks now days outsource of their technical jobs to data centers. Even bank of America is outsourcing its many parts in the banking infrastructure and this includes the automatic teller machines.
Large banks such as the world well known Citibank go even further by putting into place a full range of financial services within each one stop shop bank location to service their clients’ banking needs (Rubin & McNeil, 1977). The banks are in much need of flexible information technology infrastructure to integrate and hasten the accurate reporting of banking services applications with the banks’ bank – end systems.
Another trend that banks are happily engaged in is that the banks are convincing companies to outsource the financial services jobs to them. A big bank, Nordea of Scandinavia, even gives companies access to automated payment processing with Microsoft’s Biztalk accelerator for accounting services.
Many big banks were originally smaller banks that consolidated and merged to form a big bank. The advantage of mergers and consolidations are that the formerly competitive banks can now share a common database of customers and to blaze the other combining partners’ uncharted territory t generate more sales and interest income.
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