1.INTRODUCTION
1.1Computer technology is constantly undergoing intense advancement. In addition, the progression from analog Internet connections to Cable and Broadband connections paves the way for speedier transfer of bytes, which in turn attracts a wider spectrum of Internet users. Such developments encourage the transfer of information, knowledge and data around the world for leisure or business.
1.2The Development Bank of Singapore (DBS), established in 1968, is a full service bank with more than 100 branches in Singapore. DBS Bank, one of the foremost banks in the Asia-Pacific Region, provides a full range of financial services targeted at fulfilling the total banking and financial needs of individuals and businesses. The bank is active in corporate, retail and investment banking. Also, DBS Bank is one of Singapore's main sources of medium and long-term financing. The bank is actively engaged in providing short-term banking facilities, such as trade financing and working capital financing. It also provides investment banking services, portfolio management services and custodian services.
1.3It owns a website that offers wide-ranging information about their banking products and services as well as operating their electronic banking portal.
1.4The DBS website is information-rich. It offers a comprehensively detailed business profile of the bank and introduces the various facilities and services that the bank has. Such information is essential to potential customers and investors.
1.5DBS Bank is keen to realize the emerging needs of today’s sophisticated customers. Information and data transfer must be efficient and effective. Hence, it is necessary to infuse technological facets into their corporate operations so as to enable informational transfers via the Internet or Intranets.
1.6Competitors are increasingly branching into B2C virtual commerce. It is inevitable that DBS Bank follows suit in order to stay on par. The website hosts the bank’s online banking portal, which allows individuals to maintain their bank accounts and authorize transactions from the convenience of anywhere in the world. This is a perfect illustration of two-way informational transfer, involving the bank and their customers.
1.7People want to secure and be able to trust the integrity of the virtual commerce environment of the bank. Therefore, in spite the advantages of having operations via the Internet, DBS bank has to be aware of the privacy and security issues that are inherent. The bank constantly faces the threat of viruses, hackers, unauthorized accesses and fraudulent transactions. The recent security breach that DBS encountered in 2002 exemplifies the frailties of virtual commerce. In addition, the bank has to comply with rules and regulations of the Monetary Authority of Singapore (MAS). The transmission of confidential personal data through the Internet is governed by the Banking Act (Sixth Schedule).
People in Singapore are steadily evolving into being Internet and IT savvy. In due time, the Internet would be a necessity to people. Competition amongst several Internet service providers (ISPs) is also making the Internet affordably available.
2.STRENGTHS
2.1Better Internet technologies herald imminent change to the way businesses are run. The World Wide Web (WWW) is now one of the most established places that people use to garner information and knowledge. As such, DBS Bank can use the Internet was a way to strengthen itself among worldwide competitors.
2.2Developing is a subtle yet effective way to reach out to potential customers and investors who may see the bank as a viable option for them. The website can be used to detail the history, operations and achievements of the bank.
2.3Furthermore, as the bank has an extensive assortment of products and services, the Internet is practical medium to promote them In this way, the bank can expand its customer base without actually involving itself in expensive global marketing initiatives. The bank’s website can be easily and readily found via search engines such as:
3.OPPORTUNITIES
3.1Modern technology ushers in a host of opportunities for DBS bank. DBS bank can use the Internet to add convenience and better serve their customers. The website functions like an online bank. With such a service, customers can do a bevy of banking activities without physically traveling to any DBS Bank branch. As this saves time and money for the customer, online banking is an attraction to people who value such expediency.
3.2Some examples include:
Account Information, Funds Transfer, Payment Services, Investment Services, Rates Online, Loan Application, Customer Service.
(Click on item to link to more information)
3.3From another perspective, the use of the online facility enables the bank to minimize queues and manpower requirements at bank branches. This translates into cost-savings in the long run. Although the savings may seem marginal but it can still affect their profits nonetheless.
3.4Online banking attracts foreign customers who can use the bank services in spite of time differentials of different regions of the world. The Internet can be used to attract enquiries from potential customers via email.
Information is an indispensable criterion to business success in the global market arena and most organizations realize the need to protect their informational assets from damage and disclosure, whether accidental or malicious.
4.WEAKNESSES
4.1The use of the Internet does however have its pitfalls too. The information provided in the website of DBS Bank can never replace the unique personal experience that a bank executive can offer to a customer. Moreover, the personal touch of after-sales services cannot be replaced through Internet.
4.2Although the website offers detailed descriptions of the many products and services that the bank can offer, but people may not completely understand the some of the technical jargon that is commonly used by the banks. It would be difficult for people to know what facilities are most suited for them. People may therefore be put off from using the website. Hence, in summary, the above-mentioned could defeat the purpose of the convenience of having the website.
5.THREATS
5.1The threats faced by DBS bank website would be the danger of Internet crimes, such as hacking and malicious acts. DBS bank must constantly provide a good and secure framework that empowers necessary protection to ensure that the customers’ online transactions are safe. The customers must be protected from external people trying to gain their records, account number and attempting fraudulent transactions.
5.2Viruses are also major threats. DBS Bank has to ensure that their sites to be free from worms, viruses and Trojan horses which can disrupt regular banking operations. The bigger problem is that such malicious programs are difficult to track and contain because there are hundreds that are spawned everyday.
5.3Another significant threat is competition from other banks. As technology continues to evolve, banks strive to be in the forefront in online services for the customers. This means that they have to continuously to keep pace with technological developments and competitors’ online services so as to attract and retain their customer base. Incurrence of additional costs is inevitable.
5.4Consequently, whilst trying hard to keep up the pace with technology and competition, DBS Bank might lack the focus on improving on its traditional face-to-face customer service. This might cause them to lose customers both physically and virtually.
5.5By trying to provide as many services/transactions online, the bank might tend to lose its core objectives online. Things will end up being more complicated and therefore, losing the objectives of providing their customers with essential information and ease of access to their accounts.
5.6Providing online services, there might be cases of cheating whereby inappropriate people are using accounts and transferring of funds simply by only having the correct numbers. This is another loophole faced by the bank. They must ensure that both themselves and their customers are not at the losing end.
6.ALTERNATIVE APPROACHES / SOLUTIONS
6.1As mentioned above, DBS Bank must ensure that there is tight Internet security against Internet crimes. Therefore, they must have good hardware and software to help battle against hackers or viruses. They can also have backup systems so that if there were to be any virus attacks, they will not lose the integrity of the customers’ database. In any case of hacking, they must ensure that they have proper defense against stealing of their private customers profiles.
6.2The security of banking online is always issue between many customers. DBS Bank can look into how to promote the safety of banking online with them, ensuring that the customers will not be cheated and it would be safe to bank with them online. This will be a competitive advantage over the other banks. These not only gain trust but also help in attracting new customers.
6.3To deal with competitors, DBS Bank can probably come up with incentives to encourage people to use the bank’s online banking. For example, for every Internet transaction, they can accumulate points where they get to redeem dining vouchers when they hit the targeted number of transactions.
6.3DBS Bank should also continue to explore the many avenues that the Internet can offer. Other than online banking, the website can be a good medium for feedback for people who prefer to email or stay anonymous.
6.4In ensuring that traditional face-to-face customer service is not relaxed, management of DBS Bank must always evaluate on staff’s performance to ensure that there is still good customer service being offered.
6.5The website could also have a 24-hours online chat service whereby people can communicate to the bank staff to better understand more about the various products and services available. If customers do not agree to the online chat service, the bank could also provide a more personalized search engine for frequently asked questions so as to get straight back to the customers instead of them typing in questions.
6.6Online face-to-face transactions can also takes place with modern technology. Since the traditional face-to-face customer service seems more personal and close, DBS Bank can also allow customers with view-cams to do personal banking even at home. Customers are able to view their personal assistance staff through their desktop screens.
References:
DBS Bank
Yahoo! Search Engine
Monetary Authority of Singapore