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Core Banking Software(CBS) Implementation Challenges of e-Banking: An Exploratory Study on Bangladeshi Banks

Author

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  • Mohammad Anisur Rahman

    (Department of Logistics Management, Donghua University, Shanghai, China)

  • Xu Qi

    (Department of Logistics Management, Donghua University, Shanghai, China)

Abstract

Banking and financial sectors all around the world haveembraced ICT to facilitate their customers with efficient services and innovative products through multichannel. The central engine that runs the core operations of the banking and financial institution is the Core Banking Software (CBS). The operational efficiency of a bank largely depends on the CBS. Moreover, it determines what a bank can offer in the future. In Bangladesh, ICT embracement has got momentum in the last decade. Some first mover banks in Bangladeshare in the process of CBS upgradation, and some other banks are trying to implement CBS to improve competitiveness, operational efficiency, and regulatory compliance. However, CBSimplementation has challenges; without proper attention to these problems,it may result in poor CBS performance. This exploratory study tried to identify the challenges that commercial banks in Bangladesh encounter in the process of core banking system implementation or upgradation. Factor analysis has been used to analyze data from 153 respondents from seven commercial banks. This study found three primary sources (factors) of CBS implementation challenges: management, technology and vendor. These factors include: consensus on requirements, therole of employees, vendor capabilities and credentials, the software flexibility, user friendliness,capability to meet requirements, employee skillset required and data migration. The findings may help the academicians to explore the factors in other cultures, countries and cross-industry.It will also help the banking practitioners to concentrate on this challenging area to better implement and upgrade the core banking software in future.

Suggested Citation

  • Mohammad Anisur Rahman & Xu Qi, 2016. "Core Banking Software(CBS) Implementation Challenges of e-Banking: An Exploratory Study on Bangladeshi Banks," Journal of Administrative and Business Studies, Professor Dr. Usman Raja, vol. 2(4), pages 208-215.
    • Handle: RePEc:apb:jabsss:2016:p:208-215
    DOI: 10.20474/jabs-2.4.6
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    References listed on IDEAS

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    1. Boot, Arnoud W. A., 2000. "Relationship Banking: What Do We Know?," Journal of Financial Intermediation, Elsevier, vol. 9(1), pages 7-25, January.
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    Cited by:

    1. Nadif Adroni & Palti Marulitua Sitorus, 2017. "Evaluation of Badix Information System Implementation Success in Telkomsel Region of Sumbagsel using DeLone & McLean Model," International Journal of Business and Economic Affairs (IJBEA), Sana N. Maswadeh, vol. 2(3), pages 211-219.
    2. Bibhushan Raj Joshi, 2018. "Factors affecting the software developer’s performance," Journal of Administrative and Business Studies, Professor Dr. Usman Raja, vol. 4(6), pages 288-296.

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