Differences Between the Two Case Studies
ATM Operations
and its Issues
- ATM service providers usually deduct some service charges from customers’ account balance every time customers use ATM.
- Banks usually charge an annual fee of Pk Rs. 330 for providing ATM card. - Security issues such as pin code hacking, on spot thefts, old machines etc., are all related with the use of ATM service in Pakistan.
- No service charges from customers to use ATM facility.
- No annual charges for ATM card. - Few security issues, otherwise the ATM machines are advanced in terms of latest technology.
- ATMs’ software keeps update
regularly and most of the ATMs are new with latest updates installed.
As seen in table 6.8, for ATM operation in Pakistan, two ATM networks are available i.e. One link, and MNet. These networks have recently collaborated to facilitate customers of all the major banks in Pakistan. However, there are some specific charges that these service providers deduct from the customers’ account each time customers use ATM service. For each service using ATM, charges are different; for example, for cash withdrawals, customers have to pay a standard charge of Pk Rs. 15 each time customers withdraws the cash using ATM. That amount usually deducts automatically from customers’ account. Similarly, for other services using ATM, charges are different. Also, mostly banks charge an annual fee of Pk Rs. 330 to provide basic cash card to their customers.
However, in UK banks, ATM facility is available free of charge to all the customers of different banks across UK. Banks also provide credit, debit, and cash card facilities to their customers without any annual charges. These cards are offered based on each customer’s credit history. For example, credit card limit or overdraft limit offered to each customer is different that is based on each customer’s previous credit history. Banks using their centralized CRM system easily estimate the credit entitlement of each customer.
On the other hand, there are several security issues with the use of ATM service in Pakistan. These security issues were shared by several interviewees during the interviews from five different banks. Some of the common issues addressed by the interviewees are: pin code hacking, on spot thefts, ATM card misplacements, machines run out of money, card gets stuck in the ATM machine etc. Some of these security issues were also addressed by several employees in UK banks during the interviews; however, according to them, ATMs are new and advanced with latest updates installed on them. Also, these machines are closely monitored by the bank staff to check if they are not misused. UK banks also provide security instructions to their customers in order to make them use these machines properly.
6.1.9 e-CRM Facilities (Internet Banking, Mobile Banking, Phone Banking, and SMS Alerts)
Theme Pakistani Banks UK Banks
e-CRM Facilities
- Internet banking is not offered by most of the banks because of issues with internet security.
- Banks feel that the internet security in Pakistan is not up to the international standards.
- Other services such as: SMS banking, internet funds transfer (IFS) using ATM, phone banking etc., have recently started but are not much popular.
- Internet banking is offered by most of the banks and it is secure.
- Using internet banking, transmission of data is secured by a separate internet protocol with data encryption.
- Some banks even provide special devices and software to their customers to use internet banking more securely. - SMS banking, phone banking, mobile banking etc., are all commonly used.
Table 6.9: e-CRM Facilities (Internet Banking, Mobile Banking, Phone Banking, and SMS Alerts)
e-CRM simply means doing business over the web or through different other electronic channels; with the use of e-CRM services, banking is not only face-to-face communication with customers anymore. Now days, both Pakistani and UK banks offer several e-CRM related facilities to their customers such as: internet banking, mobile banking, phone banking, SMS alerts etc. With the help of these facilities, customers can easily transfer funds between different accounts 24/7 without even visiting their bank’s local branch.
In Pakistani banking sector, some of these e-CRM related facilities have recently been introduced. For example, SMS banking is a service provided by few Pakistani banks to their credit card customers. Every time when a customer uses his/her credit card, the automated system sends a message to the customer’s cell phone with the details about the current usage of credit card. Customers can subscribe or unsubscribe that service any time. Phone banking is another service offered by Pakistani banks through which customers can easily receive all the updates regarding their accounts while having phone conversation with their banks’ call centre agents. Similarly, these e-
CRM services are also offered by almost every UK bank and are mostly used by customers on a daily basis.
However, as seen in table 6.9, internet banking service is not offered by banks in Pakistan. Banks considers it not being safe because, there are no set standards of internet security provided by the government level in Pakistan. On the contrary, in UK banks, internet banking is offered by almost every bank. According to the several employees of UK banks, internet banking is a safe way to do banking; it is based on secured web connections and is accessed through user logins with encrypted password. The data transmission is secured by a separate internet protocol, with data encryption. Moreover, a device is used called HSM (Host Security Module) to encrypt customers’ passwords. Some of the UK banks offer security software to their customers (free to download from the bank’s website) to use internet banking more securely; others provide a special device called PIN sentry security device that generates 8 digit random numbers used as a password each time customer logins. Hence, UK banks are proud of their internet banking facility and this service is popular in several banks’ customers.
6.1.10 Future of CRM in the Banking Industry
Theme Pakistani Banks UK Banks
Future of CRM in the Banking Industry
- At present, CRM is seen differently by different people at banks. Only IT and
call centre staffs have complete
knowledge of CRM.
- Majority of the banks nowadays are completely aware of the importance of CRM. Banks feel that CRM is the future in the banking industry of Pakistan. - However, there are some constraints from the government level that needed to be resolved to incorporate CRM properly within the banking industry of Pakistan.
- CRM is a requirement of banks in UK and it seems like banks are depending on it.
- CRM is used by every member of staff at banks and they all have a complete knowledge of CRM.
- Banks are working on improving its performance that could help employees to use the central system more easily. - CRM receives higher support from both government level and from higher management level to implement CRM policies within banks.
As seen in table 6.10, at present, CRM is seen differently by different banks in Pakistan. One of the main reasons is because CRM is not integrated across the different channels of banks and across different departments of the banks. Currently, only IT and call centre employees are dealing with different CRM packages running at the banks. Therefore, they are the only ones having complete knowledge of CRM. However, in UK banks, CRM is overall viewed similar across all the departments at different banks because making proper use of CRM system is a part of their job at the banks. Therefore, almost every member of staff is completely aware of using CRM system.
In Pakistan, while comparing with the past few years, CRM culture is increasing and it looks like banks nowadays are completely aware of its importance. To them, CRM is the only way banks would survive in the marketplace. Therefore, in coming years, it looks like CRM culture would definitely increase in the banking industry of Pakistan. However, there are some issues related with the adoption of a complete CRM system in the banking industry of Pakistan such as: lack of support from the government level, strict policies from the State bank of Pakistan, issues with the internet connectivity, employees’ awareness about new technologies etc. These issues require consideration in order to increase CRM culture and adoption of CRM successfully. Similarly, with the advancement in technology, UK banks aims to further improve the overall performance of their central CRM system that would help bank employees to use the system more easily while contacting their customers. To them, using CRM is a part of every single person at the bank and that culture would definitely increase in the years to come.