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nd communication technologies by the banking sector are – “cost-reduction, mergers and acquisitions, strategic alliances, competition, globalization, operational risks, cost reduction, time to market, surging volumes, e-commerce, enhancing flexibility, business diversification such as non-financial services and becoming ‘‘service aggregators’’, etc” (Centeno, 295). Holding a desirable market share, enhancement of cost efficiency and expanding the reach to customers are the main reasons why banks use the Internet banking facility.
On an overall basis, IT investment in banks especially in hardware, software and IT related services are assumed to bring about improvement in bank performance. However a research shows that despite the banks being one of the key investors in IT, there is little association between IT related investment and the efficiency of bank operations. This gives rise to a contradiction in profitability. However the impact is mixed for different products. For instance, investment in IT services seems to bear a positive impact on accounting profits and profitability. On the other hand, investment in hardware and software related products tend to reduce the performance of banks. There might be certain factors working behind it. For instance, there could be lowering of entry barriers, which lead to loss in market power. (Beccalli, 2007, p.2229) Technology of Internet banking is changing pretty fast. Essentially the technologies in rural markets have been lagging behind and therefore community banks are slow in taking on this technology. For such banks cost of adoption of Internet banking itself might be expensive. Internet banking helps the banks to compete across a large spread of demography and facilitates the access of modern technology by the customers. Therefore community banks need to adopt such technologies in order to be at a competitive advantageous position. (Sullivan, 2000, pp.12-13)
Internet has brought in a new wave of
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In conclusion, the paper culminates with a review of the insights derived from the case of Barclays and whether the strategies can deliver its performance targets in 5 years time. The history of Barclays Bank dates back to the early 1690s when the bank was founded as a financial institution to assist ancient merchants in managing their business finances.
Both the principal subsidiaries are clearing banks. From the Royal Bank of Scotland’s domestic origins, the bank has grown and developed to be a major global banking operation about 42% of the bank’s income come from international operations. The Royal Bank of Scotland is now the world’s sixth largest by market capitalization and the second largest bank in the UK and Europe.
Barclays Bank in India Management Report Name of the Writer Name of the Institution Barclays Bank in India I. Introduction No modern business today can exist in a vacuum. It has to face the internal and external forces that abound in the business environment.
Efficient structure theory argues of efficiency in any institution. It assumes that the lrveragr affects cost in any institution thereby negatively or positively affecting performance in the organization. A competitive banking institution has better allocation of resources, its products and services are low in terms of pricing and it therefore makes more profits.
The Bank of New York Mellon Corporation serves as a multinational banking and financial services entity and is listed in the New York Stock Exchange and in Standard and Poor 500. The Bank of New York Mellon operates all across the globe and is the biggest asset servicer in the world with more than USD 26 trillion of assets value under its portfolio.
Bank One is one of the biggest traditional banks in the US. They launched WingspanBank.com on 1999 in order to cater to tech-savvy Internet customers, in the hope of expanding their market size and operation. Wingspan was aggressive in strategies in order to become a leader in the virtual banking.
However the name UBS, became representative in nature after the bank merged its services with the Swiss Bank Corporation in 1998. UBS bank is known to be the largest banking corporation of Switzerland. It conducts its operations in more than 50 different countries of
res following the precise definition of the main objective of an organization, coupled with the allocation of the available resources to execute the objective (Stonehouse & Houston, 2003:288).
Lloyds Bank has the principle objective of becoming the best bank both to its
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