With web-based banking becoming ever more popular Chase.com had to find a level at which they could compete with rivals, Chase even took competition to the level of competing with themselves so that they could capture and maintain business. To keep themselves ahead of competitors Chase.com created Internet procurement services and networks enabling businesses to bill and receive payments through the web.
The value chain model can be used to coordinate the specific needs of Chase to its ASP. When creating the system solution Chase requested the following features:
- A system that would help them gain a competitive edge in both wholesale and retail banking.
- A method of cutting costs.
- An international thinking web site.
- A system that would help corporate customers manage their global risks.
- A system that will be able to offer a top quality service in the face of globalisation.
- Make Chase’s older business Internet enabled.
- Establish and nurture new-wired ventures.
- Capture migrating business.
- Nurture a well-trusted banking name.
In order for Chase.com to establish itself as a global force in on-line business banking, an ASP was required for the following reasons:
Expertise – Chase.com is not a specialist in IT based system solutions so therefore needed to instruct the help of an ASP in order to create the specified solution.
Enabling growth and competitiveness – an ASP is likely to increase the chances of growth and improved competitiveness of the bank’s service, as the work is focused and carried out with expertise by a firm whose primary function is in this domain.
Make life convenient – an ASP will not only be able to offer a single point of contact, but also flexibility and the opportunity of upgrades for the system that they design. Full integration support would be on hand with an ASP as well as quality of work guaranteed, as the firm will have experience.
Security – Using an ASP with a good reputation and whose work is known throughout the business world, will minimise the chances of security breaches. The fact that Chase, was very specific about the type of company it wanted to work with, ensured that the bank was able to minimise the risks of security problems. However, potential areas of difficulty could be:
Industrial Espionage – although this at first appears to be a highly unlikely, it does occur in businesses.
Out sourcing non-core services– this enables Chase to improve its service whilst still focusing on its primary core services. The ASP would take control of the system improvements allowing Chase.com to function as normal.
Support staff required – an ASP would be able to offer both system improvements, but also the support staff required to keep the system up and running effectively.
Suggested solution
On reviewing Chase.com, several objectives have been highlighted. Most notably, it has recognised that the provision of top quality banking services to Chase’s customers throughout the world is needed. An ASP will support the requirement for building on an established technological position by providing the infrastructure from world-class data centres, dedicated expert personnel and industry leading strategic partners. This effective system will equip Chase.com with the capacity to coordinate longer term goals such as providing “on-line” banking facilities, such as; access to account information, investment bank portals, portfolio management, fund transfers and foreign currency exchange.
Key features of the system have been assembled with a view to meet the requirements proposed by Chase.com. Websites that are already established in Brazil, Hong Kong, Japan and the UK will be provided with a facility that synchronises local languages with Chase’s domestic business systems. In response to the need for “drum tight” security on all banking transactions, information received from online users will be sent to a secure location on the server, where it is stored on a password accessible database. The use of cookies and transaction IDs are methods of evaluating the site’s performance and can be stopped by turning off the feature on the browser. As an ASP, interfaces will be built between Chase.com websites and Chase.com end systems providing consumers with the best possible service. It is believed that providing a user friendly structure will enable clients to navigate to their required service without any difficulty, with this in mind, a help desk facility is set up for clients with outstanding queries.
Chase.com will be provided with key co-ordinators that work side by side with personnel, management and customers. Providing appropriate training for both staff and consumer is one of the highest priorities for maximising the site’s potential. Up front investment costs will be incurred which will cover implementation and training costs as well as new hardware. Continual operational costs will pay for staffing help desks, however, at all times efficiency will be maximised. System changes will be based on transactions or the number of “hits” received by the website and also by the number of queries received by the help desk, this will enable a consumer orientated effective service.
A fully integrated system such as this proposal will require a flexible organisation to allow the most efficient running. Decentralization is very important due to the multinational nature of the Chase.com websites. Chase.com personnel must be prepared to work closely with the personnel of the ASP.
Conclusion
How successful will the process of implementing a system be to the requirements established by Chase to their ASP?
Chase is demanding that the website enables it to have a competitive edge. The system solution is proposing to maintain a fully updated system which will be built on an established technological position, this will provide Chase with a world-class website to help them maintain their respected name in banking and provide them with a competitive edge over others.
The solution will make Chase’s business completely Internet enabled by providing account information, portals for banking and portfolio and currency management. With the option of updating the system when required to keep Chase ahead of competitors the ASP’s suggested solution has all the characteristics of a successful partnership with Chase and its requirements.