The Supervisory Impact of Technology on SEACEN Financial Institutions: Issues and Challenges

The development of financial markets cannot be isolated from the influence of technology. Technology, especially information technology (IT), plays a dual role in the financial field - as the engine of development of financial products and as the engine of financial institution operations. The operations of financial institutions in SEACEN countries involving the use of IT take on the second role. The more advanced SEACEN countries can actually compete with the world leaders in IT implementation by financial institutions. However, in terms of the second role of IT, SEACEN countries are still following the lead of the developed countries. This research project is aimed at providing a comparative study on the IT implementation within SEACEN financial sectors, including its supervisory impacts, issues and challenges. The project also serves as a documentation of the development of IT implementation by financial institutions in the SEACEN region. Since most central banks in the region are the authorities for the supervision of banking systems and not of non-bank financial institutions, the discussions on financial institutions pertain to banks. The project addresses the international best practices in IT implementation, cross-country comparison regarding IT implementation by financial institutions, the supervisory impacts, and the IT supervisory framework. SEACEN countries have different levels of IT implementation and IT supervisory frameworks. The country papers and survey results show that there are three different levels of IT implementation in the SEACEN countries. They are: 1) Developed IT implementation and established IT supervisory framework; 2) Early stage of IT implementation with less-established IT supervisory framework; and 3) Less-developed IT implementation. For each level of implementation, countries face different issues and challenges. Wherever IT implementation has become an important part of financial institution operations and management, the SEACEN member central banks consider IT supervision as an integral part of the overall financial institution supervisory framework. However, since there is cross-country heterogeneity of IT implementation and IT supervisory framework, suggesting a minimum requirement for IT implementation for institutions and a model IT supervisory framework is very difficult. The research project also addresses some issues and challenges faced by the countries in the region in terms of mitigating IT risks and bringing IT implementation by financial institutions in the region to a level playing field according to international best practices. The issues and challenges suggest the need to increase cooperation among the SEACEN member countries to increase IT awareness, implement good IT governance through establishing IT supervisory frameworks which conform to international best practices, increase knowledge sharing and training programmes in order to speed up the spill-over effects from the more advanced countries in the region.

An investigation into trust and security in the mandatory and imposed use of financial ICTs upon older people

Care needs to be taken to reduce the number of people who are fearful and mistrustful of using ICT where that usage is forced upon them without choice or alternative. The growing incidence of mandatory and imposed online systems can result in confusion, misuse, fear, and rejection by people with only rudimentary ICT skills. A cohort where a high percentage of such people occur is older people, defined in this study as people over the age of 60 Examples of compulsory ICT interactions include some banks limiting bank statement access through online rather than paper-based options. Other examples include the purchase of theatre or sports events tickets through ticketing systems that require an online transaction to take place. Increasingly, people are living beyond the normal retiring age. As the older cohort increases in size and in overall global population percentage, the problem of forced technology usage affects technology acceptance, technology trust, and technology rejection. People care about ICT systems where reduced trusted acceptance of technology reduces the advantages of digital health care, the perceived security of banking and shopping, and the autonomy of ICT-driven lifestyle choices. This study aims to solve one of the puzzles of ICT-driven change, where older people can show trepidation towards using technology. By understanding the drivers that influence the choices older people make in relation to ICT systems, it may be possible to introduce a much higher level of trusted acceptance in ICT systems. Although many people adopt ICTs into their lives, many older people face difficulty in using technology when it is forced upon them. This study aims to understand the connection between how choice (or lack of choice) can lead to the rejection or resistance towards ICT usage. Older people sometimes opt towards practices that place themselves at risk of financial or informational disadvantage. This study used a qualitative approach to understanding the factors that influenced the trusted acceptance, trepidation, and in some cases rejection of ICT usage by interviewing a sample of older people. Participants were asked to consider a wide range of ICT-usage scenarios and to describe their intentions. The study focussed on circumstances where ICT usage fell under either mandatory, imposed, or voluntary conditions in order to compare user behaviour. Settings included a range of technology-reliant states that examined IT security, volition and choice, aging, trusted acceptance, and technology adoption. Participants were interviewed to discover and sort the conditions (whether singly or in combination) under which the expectation of ICT acceptance was in some way altered, diminished, or prevented. This research found that older people made poor decisions when the choice to use a technology was replaced with a mandatory or strongly imposed pathway. Mandatory ICT usage across the broad area of financial transactions brought about widespread fear and distrust of online technology usage. The results revealed that many older people not only find these innovations daunting and confronting, but they also have difficulty placing their trust in ICT systems and applications that have become mandatory. In normative conditions, increased ICT acceptance and ICT usage is expected. When ICTs are mandatory in their usage, acceptance is replaced with compulsory procedure. This does not mean that mandatory things cannot be accepted, but rather that older people will accept the need to use a technology according to their perception of what is necessary for their daily and routine interactions. This study showed that voluntary ICT usages including choices increase informed decision-making, security of online financial interactions, and trusted reliance upon ICTs. Choice in ICT usage carries greater trust than mandatory, obligated, or heavily imposed ICTs. The study revealed that mandatory ICT systems can create perceptions of fear, mistrust and uncertainty. In situations where a mandatory ICT system becomes the normative method of transaction, a strong risk to the trusted acceptance of a technology is not merely the lack of ICT-based choice, but also the inability to gain reassurance or secondary confirmation through either face to face or telephone-based communication. Trust in not just the usage, but the implied secure usage of mandated and imposed ICTs, is problematic for older people. This study revealed the significance of mandated ICT systems that limit choices for people, because older humans more readily validate and associate their trust in new innovations when they can access various different professional, technical, peer-based, social and popular opinions. The research also showed that older people are fearful and less trusting in mandatory and imposed systems because they have less financial resilience, and less opportunity to bounce back from loss and disadvantage brought about by digital and online interactions. Older people were worried and reluctant to accept technology at first glance because they knew that they had spent more time than others in a pre-internet, pre-digital environment, and their seminal life experiences are correspondingly less technology-related. The results showed that many older people preferred human communication and interaction rather than communicating, buying, paying, and trusting in purely digital, ICT-based experiences. This demonstrated a gap in the trust and security of digital systems, and the need to address those ICTs that impose and mandate instruments and procedures for daily life. Specifically this study looked at what could reduce unsafe and insecure banking practices by understanding the role of choice in the trusted usage of ICT systems. This study is significant because it shows that older people make financial and social, decisions under reactionary, insecure, and under-informed conditions as a result of a gap in terms of trust security and choice. On the one hand older people develop trust towards a new innovation based on accumulated human discussion, information and reputation. On the other hand older people hold the perception that online systems offer reduced choices. This study led to the development of a model for trusted technology choice (TTCM). It differs from traditional acceptance and diffusion thinking, by having outputs as either ICT acceptance or ICT rejection. It diverges from diffusion and technology acceptance models (TAM), because technology acceptance is not regarded as a foregone conclusion. Instead, it places a very high value upon choice and volition, trust, security and human interaction. The TTCM model, together with a framework for identifying volition barriers, provides a different set of criteria for understanding the needs of older people and their meaningful interactions with new innovation and ICTs. The practical applications for using such a model directly impact upon financial and social stability for older people. Where choices are either removed or limited due to ICT usage, older citizens are unfairly disadvantaged. A model that accurately predicts the trusted usage of ICT innovations can have a widespread effect on the implementation of large-scale public and private systems where the trusted acceptance (or rejection) of each system has on flow impact on financial, health, and other critical services that include the growing population of older people

ANALISIS PERBANDINGAN TINGKAT USABILITAS PADA WEBSITE BELANJA ONLINE DI INDONESIA (STUDI KASUS: TOKOPEDIA, BUKA LAPAK, SHOPEE)

Seiring meningkatkanya jumlah pengguna internet di Indonesia, fenomena belanja online saatini juga semakin meningkat. Website belanja yang diakses oleh para pembeli online dituntutuntuk memiliki tingkat usabilitas yang tinggi agar memudahkan penggunanya dalam berbelanjaonline. Penelitian ini dilakukan untuk mengevaluasi tingkat usabilitas dari 3 website belanjaonline di Indonesia yaitu Tokopedia, Bukalapak, dan Shopee yang ditinjau dari 5 dimensiusabilitas menurut Nielsen yakni learnability, efficiency, memorability, errors, dan satisfaction.Metode yang digunakan yakni thinking aloud yang melibatkan pengguna internet sebagairesponden dengan rentang usia 20-40 tahun sebanyak 42 orang, dimana responden tersebutterbagi dalam dua kategori user, yakni novice user dan casual user. Hasil akhir dari penelitianini berupa masukan dan rekomendasi perbaikan yang dapat dilakukan untuk meningkatkankepuasan konsumen bagi para pengembang website belanja online di Indonesia.  Kata kunci: thinking aloud, usabilitas, website belanja onlin

Trust, Security and Perceived Risk Models for Designing Internet Banking

This research assesses the behaviour patterns of existing bank customers towards Internet banking service in the UK (non-adopters and adopters), and their continuing usage or abandonment of service. The study also develops a theoretical model for trust, risks and Internet banking security, to achieve safety in the area of Internet banking services. Specifically, the majority of existing studies neglect patterns of post-adoption (continued use and abandonment of use) of Internet banking; focusing instead on either adoption or acceptance of internet banking (pre-adoption). The research in this thesis responds to this gap in the existing literature, offering a reassessment of the authentic use of Internet banking services in the UK. It does so by exploring the influence of trust, perceived risk, and security concerns, on customers’ behaviour and intention to use or not use Internet banking services. To address the study aims, it first develops conceptual frameworks. These encompass trust, security and perceived risk factors, and identification, and determine what influences consumers in their non-adoption, adoption, continued use, or abandonment of Internet banking. The study investigates customers located in Leicester city, and applies a quantitative research design, using a survey as the primary means of data collection. There were eight hundred and thirty eight valid copies (838) of the questionnaire, comprising a sample of 503 Internet banking users, 291 non-users of Internet banking and 44 abandoners of Internet banking. III A combination of simple regressions, correlation coefficients and frequencies (Categorical Variables), was used to analyse the data, by subjecting it to statistical analysis software SPSS. Initial statistical results displayed that 34.7% of the study sample were non-users of Internet banking, with Internet banking services abandonees being a minority. They represented just 5.30%, i.e. 44 customers from an overall study sample of 838. For them, trust, security and perceived risk were significant influences. Similarly, in adoption and continuity models, 60% of active users mentioned that trust has a low effect on their intentions for Internet banking adoption, while security and perceived risk had a very low influence on service adoption. On the other hand, the findings demonstrated that one-third of the users sampled mentioned other Internet banking adoption factors besides trust, namely: convenience, ease of use, saving time, ease of access, good monitoring and control of accounts, and speed when performing transactions. With regard to the continuity of usage, 87% of service users agree, or strongly agreed, about their future intentions regarding continuity. Reasons for continued use of Internet banking were trust, security and perceived risk. Additionally statistical analysis found weak relationships between perceived intentions and three factors. Further, the findings also highlighted that the relationships between demographic characteristics and customers’ trust, security and perceived risk were weak in three areas (Non-users, Abandoners and Users). One of the main contributions of this study is the development of a safety area model for Internet banking usage. The safety aspects identified were trust, security and low-risk degree between 53%, 51% and 9%, according to customers’ recommendations. IV This model will serve as a basis for future studies, to determine safety area in which to exercise Internet banking. However, the usefulness of this may vary from one environment to another and by time. Overall, the research contributes to knowledge and understanding of Internet banking patterns during two phases: pre-adoption and post-adoption of services (non-adoption, abandonment, adoption and continuity of use).Moreover, the research findings and insights will help bank executives, developers, academics, managers, and stakeholders, to formulate strategies and service frameworks to induce clients to accept services. Furthermore, maximising productivity and profitability through the creation of sustainable relationships in the long term with users will improve their satisfaction and retention. Bank administrators and decision makers should take advantage of the safety area model, and consider the views and recommendations of customers

Elaboración y validación de un marco de trabajo para el diseño de interfaces para cajeros automáticos

Los cajeros automáticos o ATM fueron el primer gran intento de los bancos por descentralizar sus servicios y desde entonces están en una constante ampliación, posicionando más cajeros para mejorar el alcance a sus clientes. Sin embargo, los ATM tienen demasiadas funcionalidades, lo que genera problemas de usabilidad debido a la falta de consideración por el usuario final en el diseño de las interfaces. Esto se debe a la escasa información sobre cómo aplicar nociones de usabilidad en el diseño de las interfaces de ATM. En el presente trabajo de tesis se elabora y valida formalmente un marco de trabajo para el diseño de interfaces usables para ATM. Se realizó una revisión sistemática de la literatura y un análisis de sus resultados permitiendo encontrar los métodos de diseño más idóneos para el diseño de interfaces usable ATM. Se clasificaron los métodos de acorde a las fases del estándar ISO 13407, se refinaron y validaron mediante entrevistas y cuestionarios dirigidos a expertos en usabilidad y ATM. El marco de trabajo propuesto fue empleado por el equipo de desarrollo de ATM de una entidad financiera del Perú para el rediseño de las interfaces del flujo de depósito de efectivo. Como resultado se obtuvieron interfaces gráficas que mejoraban la satisfacción del usuario final y resolvían problemas identificados por el equipo a través de métodos de diseño centrado en el usuario. Para la validación de la propuesta, se llevó a cabo pruebas de usabilidad con usuarios finales, quienes probaron interfaces diseñadas sin una metodología de diseño frente a las interfaces resultantes de la ejecución del marco de trabajo propuesto. Las interfaces resultantes de la ejecución de la propuesta tuvieron un nivel de usabilidad mayor, validando la eficacia del marco de trabajo propuesto para el diseño de interfaces usables para ATM. Con esto, se logra incluir un proceso metodológico de diseño centrado en el usuario al dominio ATM que puede ser empleada por la industria en un contexto real, mejorando la usabilidad en las interfaces finales.Tesi

Consumer Intentions to Use Electronic Banking Channels: The Role of Task-Channel Fit

The increase in electronically mediated self-service technologies in the banking industry is changing the way banks service consumers. Despite a large body of research on electronic banking channels, no study has been undertaken to explore the importance of the fit between electronic banking channels and banking tasks. Nor has there been research into how task-channel fit and other factors influence consumer intentions to use electronic banking channels. Integrating task-technology fit theory with acceptance and adoption research, this research develops and tests a research model that explains how the task-channel fit (TCF) and other factors impact on consumers' intentions to use electronic banking channels. An exploratory study was first conducted, investigating industry experts' perceptions towards the concept of task-channel fit of electronic banking channels. The findings demonstrate that the concept was perceived as being highly relevant by bank managers. A research model was then developed drawing on the existing literature on electronic banking channels. Following this, five exploratory focus groups were conducted in order to assess the initial conceptualization of the research model. Subsequently, a survey questionnaire instrument was developed using judgment rounds and two pretest evaluations. Central to the scale development was the measurement of the TCF construct. Drawing on IS strategy and alignment literatures, a parallel instrument was created in order to determine TCF across several unique dimensions. A pilot study assessed responses from 280 consumers using Internet banking for two different banking tasks. Overall, the scales demonstrated high reliability and showed adequate construct validity. The analysis of the pilot study suggested that the TCF construct and other antecedents of consumer intentions to use Internet banking explained a substantial amount of variance in the dependent variable. The scales were refined in light of the pilot study. In the main study, 340 responses were collected from consumers using Internet banking for account inquiries or financial loans. The results showed that the TCF construct was a strong predictor of consumers' perceptions on the usefulness of Internet banking and their attitudes towards these services for both banking tasks. Overall, the TCF construct and other identified variables accounted for at least 63% of variance in the dependent variable

A Comparative Study of Non-Fund Based Income of Selected Public Sector Banks & Selected Private Sector Banks in India

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