The Essay On The Impact Of Digital Innovation On The National Australian Bank Is Insightful.

Changes Due to Digital Innovation

Discuss about the Work-Centered Analysis for Banking Industry.

The aim of this report analyse is to examine the changes that have occurred in the National Australian Bank due to digital innovation using a work centered analysis approach and the effects of digital disruption, their recommendations, and implementation plan.

National Australian Bank has not been left behind in these raft innovations in the banking industry. Technology is becoming a critical part of daily financial transactions to the customers and employees of the bank. We have seen the emergency robot advice services like ignition direct and Acorns Australia which provide automated online financial and investment advice. (Zopounidis, 2012)They work in a way that once you provide information about your financial goals, a robot adviser uses complex algorithm and mathematics models to calculate an investment strategy for the National Australian Bank. (Frankish & William, 2014) .  

Before digitization, the customers were divided into two; external customers and internal customers. External customers were mostly people employed by the government. The bank offered them services such as cash deposits, cash withdrawals and even short and long-term credits. Internal customers consisted of the workers who worked in the bank. They also included office messengers that moved information to other National Australian Bank branches, though they were later replaced by electronic mail system that computerization invented.  (Greyson, 2017)

Before digitization, financial transaction services were so minimal one could not obtain financial accounts during late hours or even during weekends, as there were no automated teller machines to facilitate this. Moreover, customers were to queue for long hours for them to get the bank services. (Franz, et al., 2017)

Before digitization, financial transactions were really slow. Acquiring a loan was a long process which entailed walking from one office to another in look for signatures from various department. Moreover, recording of the business transaction took so long as it was done manually. (Soffer & Erik, 2011)

1. Information: Before digitization, communicating to customers was really hectic, the only way was through bank journals which were quite expensive as it included publication. Moreover, presentation of financial statements was not so accurate due to several errors. (Agboola, 2010)       

Back before digitization, customers were forced to queue for long hours in order to make their transaction. Moreover, customers could only do bank transactions during working days when banks were opened.

The banking environment was so unfriendly, as customers had to queue for long hours as they waited for their services. Moreover, retroviral of one’s financial records was a long process as the accountants had to go looking across the shelves to find the files.

National Australian Bank had so many departments before digitization, there was data processing department, and there was messengers department and accountants department all of which were replaced after digitization.

Effects of Digital Disruption

After digitization, the number of customers has really gone up. This is because anyone who owns a smartphone or a computer and he or she is above eighteen years, can have a bank account. The number of internal customers (those working for the bank) has decreased as some of them were replaced by technology. For instance, the number of accountants has reduced due to capabilities of computers doing the financial accounting management with some help from a few individuals.

Digitization has come up with several services like, mobile money transfers, the automated teller machines were customers can access their finance at any time. Moreover, mobile banking is now giving loans to the customers by just a press of the button.

After digitization, financial transactions were so quick. Acquiring credit from the bank is now easier and faster than before through the use of mobile banking. Queues at the bank are now short due to faster services which have been facilitated by computers. 

Information technology in the National Australian Bank became a critical business resource, its absence resulted in poor decisions and eventually business failure initially. Electronic, internet and mobile banking are some of the new things in information technology in the banking industry. (Cull, et al., 2013)

After digitization, National Australian Bank brought the internet banking, mobile and tablet application to the consumer markets. Through this innovative use of mobile financing and use of other technologies in the banking industry, it has achieved a high status as a digitized banking that much improvement in its customer’s base. Moreover, technology has facilitated new delivery techniques like the automated teller machines, net banking, and mobile banking. (Sohani, 2012)

National Australian Bank environment has completely changed, there has been a new organizational paradigm, a blocked chain-based payment system and increased importance of machine operation learning.

The emergence of computers simplified work as most of data processing was eased. Moreover, it made filing system much easier as computers can now store as much data as possible thus eliminating the filing shelves in the bank offices, this has resulted to much organization in offices and much space has been saved. Moreover, digitization has led to some departments done away with, for instance, data processing departments are no more. (Crey & Patricia, 2017) 

Digitization in banking has enabled customers of the National Australian Bank to shift the power of transaction to their advantage. Consumers can research, purchase, interact, analyze and grow or eradicate interaction without any in-person engagement. Each of this process can be done with a quick voice command or a touch of a finger. Financial services traditionally characterized by face-to-face dealing with customers, such as investment banking advisory services have been affected. Lending too has been transformed into crowdsourcing funding and peer-to-peer lending schemes which gives borrowers an opportunity to circumvent many branches and in some cases collateral requirements and credit ratings. Traditionally banking was constrained to oversight and regulations which have recently become friendly to customers.

The first step to respond to the impacts of digital interference is to be familiar with the challenges being faced, including the speed and scope of the change. The second step is to create a business plan that responds to these effects of digital disruptions. New digital tactics like the building of an end-to-end account opening process for smartphones and computers is vital. The firm’s customs should be changed and new processes put in place. New skills in analytics, technology, and design must be obtained to speed up and scale change. Open banking will change the dynamics of the banking ecosystem overnight and its future will extend beyond traditional services including, hospitality, travel and e-commerce. Responding to these effects will require total commitment from the leadership and increased investment by customers of the National Australian Bank.

• Change of management: A new management with an advanced technical skill will be required in order to facilitate implementation of the digitized system into the National Australian Bank.
• Training on new and revised information to both employees and customers: Both employees and customers will have to undergo training on the use of modern technology in banking and where guided instructions are required shall be posted on customer’s emails and other social media platforms.
• Conversion to the new system: All outdated office equipment will be exchanged with modern ones in order to facilitate digitization of the bank.
• Acceptance testing: Finally, a random test will be done to ensure that the new technology is suitable for both the workers and employees of the bank.

Conclusion

We cannot deny that improvement of technology was essential for the present era. Banking needs to adapt and embrace new technology to provide excellent services to its customers. Therefore, it is worth concluding that the banking industry ought to spend more on IT to advance its operations, products and customer service. National Australian Bank should dedicate more resources to the expansion of secure services, products and IT system.

References

Agboola, A., 2010. Information and communication technology in banking operations. s.l. LAP Lambert academic Pub.

Crey, N. & Patricia, R., 2017. Back to the future. s.l. Cham Springs.

Cull, R., Robert, C. J. & Jonathan, M., 2013. Banking the world. s.l.: MIT Press.

Frankish, K. & William, R. M., 2014. The Cambridge handbook of artificial intelligence. s.l. Cambridge University Press.

Franz, C., Thomas, B. & Andreas Herrmann, 2017. Evolving business models. s.l. Springer International Publishing.

Greyson, L., 2017. The social and economic impact of technology 1978-84. Boston: Springer US.

Johnston, L. S., 2017. The Bank for International Ideas. s.l. Johnston and associates.

Mohapatra, S., 2017. The case study in strategic management. s.l.: Pearson Education India.

Riano, D. & Eva, O., 2012. Artificial research and development. Washington DC: IOS Press.

Soffer, P. & Erik, P., 2011. Information system evolution. s.l.:Springer Berlin Heidelberg.

Sohani, A. K., 2012. Technology in the banking system. s.l.:Agartala:Icfai University Press.

Zopounidis, C., 2012. New trends in banking management. s.l.: Heidelberg.