Automated Teller Machine: Innovation in the Banking Industry

automatize Teller Machine Innovation in the beveling sedulousnessThe banking application occupies a very strategic position in the financial system of any economy, since there will no economic emergence unless there is adequate channelling of savings into investment. The banks are responsible for increasing the direct of savings and investments, granting of credit and generally influencing the level of supply of m unmatchedy in the economy. They also facilitate economic transactions between nations thereby supporting and promoting trade, commerce and industry.Banks and banking is a very old profession but the contemporary banking practice as we know it today, started in the medieval days in Italian cities of Florence, Venice and Genoa. In Nigeria, banking officially had a formal legislative supporting in 1952 (alford, 2010) and since thence, there has been tremendous growth in the industry, which believed to have been fuelled more often than not by commutes in technology an d the banks ability to embrace these changes successfully by implementing novel ideas in their bid to control a large grapple of the market. The organic evolution of self service technology and the emerging of a deed of parvenu innovations are taking place in the area of retail payments known as electronic money. (Mohamad Al-Laham, 2009). This development is influencing the banking industry due to the incr allay use of Automated Teller Machines. This led to a new fancy in the standard pressure, known as the funds/Cheque Deposit Automated Teller Machine (ATM).The objective of this paper is to show that the development of the Cash/Cheque stick to Automated Teller Machine (ATM) should be viewed as an innovation in the banking industry in developing countries. We also reckon to find out the approach and implementation procedures adopted by the makeup in managing the innovation, examine its benefits to the bank and finally, identifying the role played by the private instructor in the innovation. For the purpose of this paper, we use the induction of Cash/ cheque touch on ATM by Skye Bank PLC., based in Nigeria as a case study.According to (eShekels Limited, 2006), the write up of ATMs dated back to the USA in the mid 1960s and gained grounds world oer, in the 70s. However, in Nigeria, the ATM was introduced in 1989 by the defunct Societe Generale Bank and has since then, the ATMs appear to have dish out everywhere across Nigeria. eShekels limited, notwithstanding posited that the banking industry no doubt has witnessed forward motion in technology just like any other empyrean the use of the automated teller machine is one of these as it affects banking trading operations entirely. With the adoption of Self Service technology by the banks, ATMs have act to service the populace they offer convenience to clients and provide banking work comfortablyhead beyond the traditional service period. It therefore encourages a moneyless society. Thus, eli minating the risk of expiration of cash through theft or fire as witnessed in the past, creating a win-win scenario for divergeies concerned.Industries and vexationes operating in a dynamic and volatile surroundings always look for ways to make their growth a invariable process. They believe they can do this by finding new and imaginative ways of maintaining or improving their market share. The process of turning these yeasty ideas into facts is known as innovation.According to the Wikipedia, Innovation is a change in the method of doing something, or the useful application of new inventions or disc everywhereies. It may also refer to major or thorough changes in thinking, results, processes, or organizations. (Sarkar, 2007) in citing Michael Vance simplified innovation as a creation of the new or re-arranging of the old in a new way. He went further by distinguishing innovation from invention by quoting Schumpeter (1934),contributors to the scholarly literature on innovat ion typically distinguish between invention, an idea made manifest, and innovation, ideas utilise successfully in practice.In all ramification of life, be it arts, science, economic science or government policy, something new must be significantly assorted to be seen as an innovation. (Sarkar, 2007), further stated the difference or change must however be able to increase value, be it customer value, or producer value. The objective of innovation is positive change, to make somebody or something better and ultimately leading to increased productivity which is the fundamental source of increasing wealth in an economy he concluded. at that place are contrastive types of identified innovations. Some of them are highlighted below* melodic phrase Model innovation involves changing the way business is done in terms of capturing value e.g. Compaq vs. Dell, hub and spoke airlines vs. Southwest, and Hertz/Avis vs. Enterprise.* Marketing innovation is the development of new marketing met hods with improvement in product design or packaging, product promotion or pricing.* Organizational innovation involves the creation or alteration of business structures, practices, and models, and may therefore include process, marketing and business model innovation.* Process innovation involves the implementation of a new or significantly improved production or delivery method.* Product innovation, involves the introduction of a new good or service that is new or substantially improved. This might include improvements in functional characteristics, technical abilities, ease of use, or any other dimension.* Service innovation is similar to product innovation except that the innovation relates to services rather than to products.Todays United Bank for Africa Plc. (UBA) is the product of the merger of Nigerias third (3rd) and fifth (5th) largest banks, namely the old UBA and the quondam(prenominal) Standard Trust Bank Plc. (STB) respectively, and a subsequent acquisition of the er stwhile Continental Trust Bank Limited (CTB). The union emerged as the starting successful corporate combination in the history of Nigerian banking.UBAs history dates back to 1948 when the British and French Bank Limited (BFB) commenced business in Nigeria and the erstwhile STB and CTB both in 1990. Following Nigerias independence from Britain, UBA was incorporated in 1961 to take over the business of BFB. Although todays UBA emerged at a time of industry consolidation induced by regulation, the consolidated UBA was borne out of a entrust to lead the domestic sector to a new era of globular relevance by championing the creation of the Nigerian consumer finance market, leading a private/public sector partnership at supporting the quickening of Nigerias economic development, and growing the institution from a banking to a one-stop financial services institution, while spreading its footprints across Africa to earn the reputation as the scene of banking in the continent.Today, Uni ted Bank for Africa Plc. is one of Africas leading financial institutions fling universal banking to more than 7 million customers across 750 branches in 14 African countries. With presence in New York, London and Paris and assets in excess of $19bn, UBA is your partner for banking services for Africans and African related businesses globally http//www.uba base.com/group/genericpage/19Skye Bank PLC is a publicly quoted company in Nigeria with over 300,000 shareholders and is technically one of the oldest banks in Nigeria and West Africa. It provides financial products and services with a solid technological background that supports the service delivery process to customers. aft(prenominal) the bank consolidation process in 2006, Skye bank developed into one of the top financial institutions in Nigeria. Presently, it manages more than 250 branches in the country with over 600 operational ATM machines within their business premises and other well placed location across the country.In 2009, the Bank as part of its growth and expansion strategy and its determination to provide world air division and cutting edge services to its vast majority of customers, Skye Bank Plc., introduced cash advance in its electronic payment solutions, with the launch of new cash- secure, cheque deposit and unlike exchange Automated Teller Machines (ATMs), a feat unprecedented in the history of Nigerian banking industry.Mr Chuma Ezirim, Deputy General Manager of the bank, during the entryway of the product, said Depositing cash on the ATMs is very simple. A customer exactly slots in his or her card, after which he or she is presented with options on the screen. To deposit cash all a customer has to do is select the cash deposit option on the screen, after which the ATM will clear(p) the cash acceptance slot. A customer can deposit a bundle of up to 200 notes at a time, without sorting them into different denominations, as the ATM accepts 100, 200, 500 and 1,000 notes. The ATM w ill validate each(prenominal) note to confirm it is genuine, count the notes and hold in escrow. The customer is then notified of the note count and the total and given the option to continue, insert additional notes or cancel the transaction. Our customers can also deposit Cheques in ATMs. severally cheque is inserted into the ATM through the ATM Cheque Processor opening. As the cheque is inserted, it is imaged, both front and rear, the image is displayed on the screen and, subsequently, printed on the receipt to give the customer positive confirmation that the bank has recognized the cheque. When the cheque is inserted into the ATM, it is read by a MICR reader to ensure that a MICR enter line is present and that it is a valid cheque. If the ATM cannot rely the cheque, it can be rejected and returned to the customer. The image of the verified cheque, together with the captured code line data, can be passed to the back-office for processing. Cheques are picked up at undertake times by designated officers for further processing.Previously, all transactions that involve cheques and foreign currency are always done at the counter, compounded by long queues and delays.Marc Bourreau, Marianne Verdier, Cooperation for innovation in payment system the case of agile payment. Feb. 2010. http//ssrn.com/abstract=1575036