url
8
Feb
2014

THE EFFECT OF BANKING EXPANSION ON PROFIT EFFICIENCY OF SAUDI ARABIA COMMERCIAL BANKS: SYSTEMS

POSs systems were introduced in 1970s and they were developed in 1980s, to be as PC-based system. Many POS systems are performing other functions, more than the primary function of moving funds electronically, as they are integrated systems for management, inventory, marketing and accounting.
Utilization of POSs couldn’t have been analyzed separately, as it’s influenced by other available types of payments, degree of competition among banks, types of products to be purchased and transaction size. Bounie & Francois explains the determinants of the probability of using cash, check or POS, as applied on French population from March to May 2005, using dataset of 11945 transactions. It’s found that the larger the transaction, the lower the probability of being paid in cash, and the higher of being paid in check or using POS.
Concludes that ATM and POS transactions are substitutes, and that ATM surcharges impacts POS volume positively. This result has been depended on database of 1242 observations about prices and quantities of ATM and POS transactions, as applied on Spanish saving banks, from 1997 to 2003.
Banks are introducing new ways for customers to access their accounts balances, transfer funds, pay bills and buy goods and services, without using cash, mailing checks or leaving home. At the surface, one could consider the PC channel similar to the Phone Center, in that a customer is simply contacting the bank remotely, in one case over the phone, in the other by the PC, but the implications resulting in each model are different.
PC Banking (also called Home Banking, Office Banking, Internet Banking, or Online Banking) was first introduced in the early 1980s, using Banks’ Proprietary Software, but the trial was abandoned before the end of the decade, as the service couldn’t attract enough customers to make the system pay for itself, and consequently let the bank break even.
As these systems couldn’t achieve economies of scale, the next development in the early 1990s, came with Banking with Third Party Software, using a middle-ware piece, and this makes customers think that banks are operating in a real time environment. Also, this software market has attracted interest from banks, as it has steady revenue streams by way of upgrades, updates and the sale of related products.
The new direct access, introduced by Citibank in 1996, is considered as the first major improvement in PC Banking, through Banking via Online Services. This development is demonstrated by explosive growth from 40000 subscribers to 190000, as it allows Citibank to setup retail branches on subscriber-based online services. The developments are enhancing speed of access and convenience, which led to bypass-based online, services.
Customers are demanding any-time any-where delivery of financial services, and this could be realized through “Mobile Banking”, which refers to provision and availability of banking and financial services with the help of mobile telecommunication devices. The scope of offered services may include facilities to conduct bank and stock market transactions. Finds out that 15% of banks’ customers in Germany are willing to change their bank if it fails to provide mobile services. Also, Daniel finds that PC banking leads to increased number of customers.

POSs systems were introduced in 1970s and they were developed in 1980s, to be as PC-based system. Many POS systems are performing other functions, more than the primary function of moving funds electronically, as they are integrated systems for management, inventory, marketing and accounting. Utilization of POSs couldn’t have been analyzed separately, as it’s influenced by other available types of payments, degree of competition among banks, types of products to be purchased and transaction size. Bounie & Francois explains the determinants of the probability of using cash, check or POS, as applied on French population from March to May 2005, using dataset of 11945 transactions. It’s found that the larger the transaction, the lower the probability of being paid in

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Kevin J. Brandon

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