Barclays Bank Initiative on ATM

Question: What innovative practices/product/service did they implement. What was the aim of the initiative? How did it come about and what research was taken to support it? How did the initiative impact on the organisation?. What success did the initiative have on the market? Answer: Background of the business Barclays Bank is an international bank with its headquarter based in London, England. Its foundation can be traced back in 1690 where two Quakers formed a partnership. In 1728, James Barclay became a partner in the private bank. His name became the origin of the bank. After the partnership, the bank was relocated to Lombard Street where other banks were also located. Initially, it was named private bank but later it was renamed Barclays Bank. In 1917, the bank was renamed as Barclays Bank Limited. (Lute, Douglas, Mleziva, Nelson, Magee Barker, 2009)The bank grew firmly from then to become one of the pioneer banks in the world. In 2005, the bank relocated its head office to the Canary Wharf where it operates to date. Today Barclay Bank is undoubtedly one of the largest banks in the world offering financial services like banking and investment. It has also employed more than 120,000 people worldwide, therefore, acting as a source of employment. Several changes have also been made in t he bank to ensure the bank offers better services. Innovative practice/idea In 1969, Barclays Bank Center adopted the use of ATM to dispense cash to customers and to ensure that the need to visit the bank to conduct basic financial transaction was eliminated Lute, R. C., Douglas, M. A., Mleziva, R., Nelson Jr, D. S., Magee, P. D., Barker, D. A. (2009. Automated Teller Machine commonly known as ATM is an electronic device that allows a bank customer to conduct their banking transactions such as cash withdrawal without necessarily queuing at the counter. By late 1980 this machine became more popular and handled many functions that were initially performed by human tellers (Magee, Barker, Ryan, Harry, Dunlap, Sedlock Kerstetter, 2003). Activity such as check deposit, cash withdrawal, balance inquiry and money transfer across different accounts and different banks became easier. Modifications such as providing customers with account balances were introduced therefore ATM was able to perform various multiple functions. Barclays Bank was, therefore, able to serve a large number of customers without delay and also offered various business activities through the ATM. As a result, the bank has grown rapidly. (Lute, Douglas, Mleziva, Nelson, Magee, Barker, 2009) In 1990, the bank began to charge fees for ATM services which was a profitable move. However, consumers in this bank faced increase ATM crimes and scams. Criminals devised ways that aimed at stealing customers personal identification number (PIN.) In response to this bank passed a legislation of installing surveillance cameras and reflective mirrors that were designed to reduce theft in ATM. This was a good business move as, by 2005, more than 1700 British over the age of 18 had got their ATM cards (Lute, Douglas, Mleziva, Nelson, Magee, Barker, 2009). Aim of the initiative This initiative was aimed at freeing the lengthy queues for services at the bank. Initially, people made a long queue that was time wasting. With this in mind, the initiative was developed to reduce time spent lining at the counter. The initiative was also designed to provide day and night services without limiting customers to bank hours to transact their business. Privacy was also a consideration. The initiative aimed at serving customers confidentially since it was designed to serve a single customer at ago. This move ensured that that customer could not shy off transacting their business transaction with fear. Target market The Initiative primarily targeted other banking institution to support them in serving their clients. The emergency was a key factor considered here. The machine could operate even during nonbanking hours. Therefore, the initiative targeted the individuals who urgently needed money during none banking hours. Banks that faced the challenge of serving their customers especially during peak hours of banking operation were able to serve their clients using the ATM. Emergence of initiative Planning The initiative of developing an Automated Teller Machine emerged due to the frequent banking problems that were experienced by tellers. The number of tenants who were to be served was relatively higher than some available the tellers. A plan was developed that aimed at designing an automated teller machine that was able to serve customers without going to counter. Research A well-conducted study was carried on how to come up with an automated machine that could serve customers without being served at the counter. This aimed at reducing congestion of clients at the counter. As a result in1967 two people came up with this idea of developing an automated teller machine that could serve customers without being attended to at the counter (Kang Lee, 2009). This idea was however implemented by different people. It was also realized that banking would become easier and services like cash withdrawal and balance inquiry would be offered by this machine. In early 1970, this idea was realized could be implemented and engineers started working on this idea. This marked the period during which ATM was developed. Impact on the organization Result ATM has contributed in a positive way in the organization. For instance, faster and convenient services have been offered to customers. ATM has also led to a vast increase in the number of banking activities even during nonbanking hours. (Lute, Douglas, Mleziva, Nelson, Magee, Barker, 2009) For example, during weekends when Barclays do not operate like other days customers still find it easy to serve themselves through ATM. The organization has therefore extended its working hours by ensuring that ATM can work during these days that they do not operate. Barclays Bank Success factors ATM has offered a considerable benefit to Barclays Bank. Barclays bank has been able to serve its customers without the customers necessarily queuing to be served at the counter. This bank has been able to operate even during nonbusiness banking hours. Quick delivery of service has been offered by ATM. This machine is faster compared to standard service provided at the counter. (Lute, Douglas, Mleziva, Nelson, Magee, Barker, 2009) The bank has also been able to allow other customers from other banks to transact their business using ATM in different banks. Market share has also been increased leading to rapid growth of Barclays bank. Barclays bank has also gained ground due to the fact it is the mother of ATM. Challenges Even though ATM has been outstanding in the field of banking today, it has been a lot of controversies from customers. Security remains a critical threat in delivering services to customers. Even after installing a surveillance camera and reflective mirror to reduce theft, criminals have devised ways that aim at stealing customers personal identification number (PIN). Customers still face increased ATM crimes and scams. (Kang, Lee, 2009) One could also end up draining his/her account accidentally. There are also other overdraft charges unless one has a credit line protection. Debit cards also have an annual fee or charges you are requested to pay every time you use your card. ATM does not offer any protection for refunds on purchases. Aims Barclays still have a plan of developing other initiatives to ensure that services provided to customers are convenient. There are other initiatives apart from ATM that has been implemented. But due to advancement in technology still there are a lot to expect from Barclays Bank. Barclays aims at serving customers to their satisfaction. Success on market Competitors ATM has been an outstanding initiative in the banking environment. ATM is used across all banks. Customers can transact their business activities like money transfer across different banks. This has significantly impacted on the activities that are carried out in other banks. Competitors have also been able to perform their business using ATM. This is a clear indication that ATM is universally accepted, and its effect is felt across the world. Market share ATM holds a relatively larger market share as compared to other initiatives for banking activities. Being an automated machine, customers find it very easy to carry out their banking activities. As a result, ATM has been used across different banks. In the recent past, ATM has emerged as one of the most used e-business platforms in the world. Growths ATM has gained ground in the platform of e-business. It has developed rapidly and today ATM serves very many people across the world. The impact of ATM cannot be ignored if customers expect to achieve their business goals. It has been introduced into the banking system to ensure that delivery of services like cash deposit is convenient. Globally ATM has been adopted and is still being adopted by different banking institutions. (Kang, Lee, 2009) Recent research conducted show that ATM is one of the most popular e-business platforms in the world. Banks have installed ATM world widely and still there is another banking institution planning to install ATM. Therefore, growth in the number of banks that deploy ATM across the world has also resulted in the growth of ATM manufacturers. (Kang, Lee, 2009) ATM, therefore, has remained an outstanding technological and business idea that has greatly revolutionized the modern business world of today. Reference Kang, D. G., Lee, J. O. (2009). U.S. Patent No. D596,374. Washington, DC: U.S. Patent and Trademark Office. Magee, P. D., Barker, D., Ryan, P., Harry, D. W., Dunlap, R. E., Sedlock, G. T Kerstetter, T. E. (2003). U.S. Patent No. D481, 516. Washington, DC: U.S. Patent and Trademark Office. Lerner, T. (2013). History, Technology and Commerce. In Mobile Payment (pp. 1-11). Springer Fachmedien Wiesbaden. Lute, R. C., Douglas, M. A., Mleziva, R., Nelson Jr, D. S., Magee, P. D., Barker, D. A. (2009). U.S. Patent No. D602,225. Washington, DC: U.S. Patent and Trademark Office.