CASE STUDY: CORE CREDIT UNION
1. Network convergence is nothing but providing different
kind of communication services such as Voice, data and video inside a single
network. It can also be referred as media convergence. CORE has voice and data
as part of their network convergence. Voice communication is a significant part
of financial institutions and it is very important to improve customer service.
Video convergence is another type of additional Convergence opportunity. Network
convergence will bring voice, data and video communications together to provide
better service to the CORE members.
2. CORE provides its members Business services, ATM Deposit,
Mobile banking and Visa Debit cards. Apart from these services CORE should
offer the following services and products.
Prepaid debit and travel cards.
Individual retirement accounts
Electronic tax filing
Stock brokerage services
If CORE can offer the above services to its members, then it’ll
become single stop for customers seeking many services.
3. It is a fact that the mobile payments have been increased
over the past five years. According to a study conducted the percentage of
mobile users who used apple, Samsung and android pay in the year of 2016 are 27
percent. This trend will go on increasing as the usage of smart phones is
increasing every day. By end of 2019, $142 billion payments are expected to be
made using mobiles. Every company should make the necessary changes to adopt mobile
payments to continue doing business in this competitive environment. So, CORE must
make some changes to its network intra structure to provide mobile banking.
CORE should implement infrastructure to accept cloud-based payments at POS.
User friendly mobile banking application should be built. CORE should give
security the top priority because data can be easily compromised with mobile
banking which use cloud storage to store the credentials. NFC based wallet
system should be made available to the members. With these changes CORE can
gain the competitive advantage.
4. CORE depends on many third-party vendors to maintain its
business by providing multiple services and products to its customers. The ATMs
of CORE are linked with third-party ATM networks which are proficient of
providing access to the money across the globe. Advantages and disadvantages of
depending on the third-party vendors is listed below.
CORE Can reduce the cost of payment
processing by processing the transactions of CORE through third party vendors.
This can reduce the operational cost for
the company. Recruitment can be brought down thus by reducing the costs.
Third party vendors can have proficient resources specialized in the
respective service. The technical expertise will help the CORE provide the
better services and quality products to their members.
When working with third party vendors the
data of the company will be accessible by many people. Data can be compromised
Customer service sometimes can be not up to
the mark when working with third party vendors. Service level agreements can
not be reached sometimes when working with outsourced vendors.
5. With the usage of internet increasing day by day, the
online transactions are also increasing exponentially. Still people seem to be
not interested in Online banking for many reasons. Concerns over the security,
lack of knowledge on how to make the online transactions and ignorance of the
online banking benefits are some of the reasons.
If I were a manager at CORE, I’ll do the following things to
encourage more members to do most of their banking online.
Providing an educational support on Online
banking, Paperless statements and many other online services.
Designing marketing strategies to promote online
banking. This can be done by explaining the members the time and money they can
save with the depositing money/checks online and transferring the money using
By assuring them about the security of online
Explain members the Cashback and the other card
benefits which are available with credit card.
6. As mentioned in the case study it is very important for
any company to provide security to the member accounts especially for financial
companies. There are many back up and security measures being carried out by
CORE to protect their member accounts. In addition to that there are few other
measures which can improves the security. Authentication is one of the major mechanism
which can improve the security. By enabling the Two factor authentication for
mobile payments and online transactions CORE can assure safety to the Members.
Data encryption should be enforced so that CORE can protect the data before
placing it on a network. Encryption is very powerful mechanism of providing
data confidentiality. Firewalls should be set with specific rules so that the
traffic can be denied or allowed. Proxy firewall is one of the advanced
firewall type which can prevent the intrusion. Backup mechanisms are also
integral part of company. Both data related, and network related Backups should
be maintained. Back up for the data should be maintained regularly. Offline
copies of the data backup should be maintained apart from the cloud backup
depending on how important the data is. The frequency also decided by the
importance of data. Coming to the network related backup, battery backup should
be provided to all the critical components so that they can be up and running
all the time and prevent losing any data.