Network convergence is nothing but providing differentkind of communication services such as Voice, data and video inside a singlenetwork. It can also be referred as media convergence. CORE has voice and data aspart of their network convergence.
Voice communication is a significant part offinancial institutions and it is very important to improve customer service. Videoconvergence is another type of additional Convergence opportunity. Network convergencewill bring voice, data and video communications together to provide betterservice to the CORE members. 2. CORE provides its members Business services, ATM Deposit,Mobile banking and Visa Debit cards. Apart from these services CORE shouldoffer the following services and products. · Payroll deduction: · Second mortgages · Prepaid debit and travel cards. · Notary service· Individual retirement accounts· Electronic tax filing· Stock brokerage services· Mutual fundsIf CORE offers the above services to its members, then it’llbecome single stop for customers seeking many services.
3.4. CORE depends on many third-party vendors to maintain itsbusiness by providing multiple services and products to its customers. The ATMsof CORE are linked with third-party ATM networks which are proficient ofproviding access to the money across the globe. Advantages and disadvantages ofdepending on the third-party vendors is listed below.
Advantages:· CostEffective:CORE Can reduce the cost of paymentprocessing by processing the transactions of CORE through third party vendors.Example: PayPal. This can reduce the operational cost for the company. Recruitmentcan be brought down thus by reducing the costs. · Proficiency:Third party vendors can have proficient resources specialized in the respectiveservice. The technical expertise will help the CORE provide the better servicesand quality products to their members. Disadvantages:· Confidentiality:When working with third party vendors thedata of the company will be accessible by many people. Data can be compromisedsometimes.
· CustomerService:Customer service sometimes can be not up tothe mark when working with third party vendors. Service level agreements cannot be reached sometimes when working with outsourced vendors. 5.
With the usage of internet increasing day by day, theonline transactions are also increasing exponentially. Still people seem to benot 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 onlinebanking benefits are some of the reasons. If I were a manager at CORE, I’ll do the following things toencourage more members to do most of their banking online. I. Providing an educational support on Onlinebanking, Paperless statements and many other online services. II.
Designing marketing strategies to promote onlinebanking. This can be done by explaining the members the time and money they cansave with the depositing money/checks online and transferring the money usingmobile banking. III. By assuring them about the security of onlinebanking. IV. Explain members the Cashback and the other cardbenefits which are available with credit card. 6. As mentioned in the case study it is very important forany company to provide security to the member accounts especially for financialcompanies.
There are many back up and security measures being carried out by COREto protect their member accounts. In addition to that there are few othermeasures which can improves the security. Authentication is one of the major mechanismwhich can improve the security.
By enabling the Two factor authentication formobile payments and online transactions CORE can assure safety to the Members. Dataencryption should be enforced so that CORE can protect the data before placing iton a network. Encryption is very powerful mechanism of providing dataconfidentiality. Firewalls should be set with specific rules so that the trafficcan be denied or allowed.
Proxy firewall is one of the advanced firewall type whichcan prevent the intrusion. Backup mechanisms are also integral part of company.Both data related, and network related Backups should be maintained. Back upfor the data should be maintained regularly. Offline copies of the data backup shouldbe maintained apart from the cloud backup depending on how important the datais. The frequency also decided by the importance of data.
Coming to the networkrelated backup, battery backup should be provided to all the criticalcomponents so that they can be up and running all the time and prevent losingany data.