THE NEW ERA OF DIGITAL

BANKING Made by:

Asmaa Abobakr
COVID-19 IMPACTS ON BANKING Dina Ahmed Fawzy Alfawal
Abdelrahman selim
Mohamed fesal
This project is put forward to entitle the issues faced by customers attending the bank for the use
of different services offered by the bank. In the light of Covid-19, it has become a challenge to
guarantee safe environment for the working staff and the hundreds of people flooding into the
bank.
Main points covered are the research methodology, the technical tools to help support this
research and the possible implications. This research revolves around the main idea of lessening
crowds at the banks by helping them schedule virtual meetings as appropriate. People will have
the option of scheduling a meeting with the addressed staff. Several steps are to be done before
the meeting is scheduled with the right employee to guarantee the best service to the client.
Moreover, virtual Certificates of Deposits tie will be another idea we will tackle. Many clients
bare the traffic to reach the bank to put forth inquiries regarding this matter. This can be done
virtually, as of a meeting can be scheduled for this particular inquiry. Clients will be offered a
drop down list to choose amongst their preferred choice. Whether they want the CD to be annual,
monthly or even semi-annual or as appropriate.
Another service the bank can provide their clients is the check deposits scanning. On the check
there can be provided a code of the specifically designed for the client. Once the system in the
bank receives this reading the money in the check can be deposited either on the check’s holder’s
account or transferred to someone else’s by providing the information of the third party.
Virtual meetings will lessen the amount of times one client has to go to the bank. Not only that,
the vast majority of clients will be making physical visits to the bank on the basis of
prescheduled appointments. This is applicable for those who start their procedures online as well
as for those who want to attend the bank on a specified appointment. To avoid long ques, they
can make appointments online to receive a timing slot that’s specified to them. This will help
with the order, as people will visit the bank as per appointments and get served one after the
other.
This will with no doubt mesh with the bank’s vision of being ahead of others by serving the most
delicate yet updated services that drives uniqueness. As this will even meet their aspiration in
investing in data to serve the upcoming needs of tomorrow and beyond sooner than expected.
We will first start with the applicability of the three ideas and the reason behind thinking of these
ideas. The main issue is the safety of customers and how artificial intelligence can save all
customers the time they can waste in a bank waiting. Fintech has been the new most used
terminology, where companies are hired to set up a whole new system for a bank to start they
virtual platforms.
CIB has strict measures for the information of their clients. Hence, meetings that the staff will be
holding with all clients should be held via a platform that is restricted to the use of bank
employees only. This is to ensure that all clients are being offered with the same quality service
but online. This will be an application, which can be downloaded on all devices. Laptops or
mobile phones or even tablets. Clients will have their meetings held on schedules as appropriate
to the bank’s working hours. First the client will go online on the website of the bank and request
a meeting, then they should fill the application that will specify their purpose. On the other end,
the call center can handle these arrangements. Where they filter requests and direct each request
to the employee in question. Once all requests are filtered, and each employee is assigned with
different meetings. Customers should be notified via there mobiles phones, or on the website
itself of their requests’ final status. For security reasons each customer should be given a QR
code. In which in order to start the meeting they should scan the code and wait for few minutes
until the system authorizes the worker with the meeting. Once the employee is successfully
notified, the meeting shall take place. Another security measure that will be for both parties’
interest is recording the meetings. For any conflict can be easily resolved by being able to access
the meeting and reviewing it. For any further services that the bank will not be able to finish
online such as final signatures, the client can schedule for an appointment via the same platform
and once they make their appointment they scan their QR code for final approval. The same
scanning process should happen at the bank for security measures to reassure that the person
attending the bank is the same person who has requested the appointment.
Furthermore, the second most requested service at the bank is the CDs’. Once this can be done
online, many people will be going to the bank less often. On the website there is already the
transfer of funds, which will make this an easy option to withhold to. Firstly, the client is going
to use the website and this is the online banking area. There will be a drop list that has all the
different CD’s the bank is offering as per most recent update. For each CD, there will be the
information regarding returns and maturities and everything a client could think of. Once the
client has made their mind of what they want, they can request a CD without any further
inquiries. They will have to scan their codes, so that the system asses the eligibility of whether or
not they have sufficient funds. Once they’re past this assessment they will be directed to fill an
application and book an appointment to file in their papers and once that’s done. They can
transfer the money to their investment or the bank can do it without further implications. If the
client wishes to hold a meeting with the employee, they shall book an appointment and put
forward all their inquiries. Where the employee can help start and fill an application and directed
furthermore on the directions to successfully finish this procedure.
Lastly, when a person wishes to deposit a check or wishes to cash it in. They must attend the
bank and wait in line to get their business done. Once the bank issues check notes with the QR
scan able code to each of their clients, it will have done a milestone towards digital banking. For
those who have checks and wish to deposit them in their own bank accounts can do so by going
into the website and choosing the service of depositing a check. Once that is done and an
application is filled to notify the bank that this person has agreed on terms and conditions. They
will be directed to scan the QR code on the check and that is their request being at the
employee’s desktop. Once the employee is done with all the related paper work and approvals
and the like the client is required to scan the code one more time for the service to be done. This
could take from hours to days. As it depends on the amount of money dealt with. However, the
client should be notified when their request has reached the bank.
Not only will this lessen the number of people having to attend the bank regularly, also less work
will be used. In which most applications will be online for both clients and employees. This
translates into being more environmentally friendly and less expenses spent on paper.

Research methodology:
The following questions were asked to a range of people, ages from 25 - 50. Most of them were
familiar with the bank and the services offered online. They were questioned over a friendly chat
online as to acknowledge the reason that would take them to the bank. Most of them were
complaining about the time it takes to get them served. They would say that the time taken to be
served is quiet long. According to them minimum waiting time was 30 - 45 minutes on a regular
day. As this could get worse according to their answers on first few days of the month. They
were complaining about the Covid-19 and how they now have to wait longer because of the
safety precautions.

 I use online banking because it saves my time.

Yes No

 If your request can be proceeded virtually, will you be willing to hold online meetings with
the entitled working staff?
Yes No

 Do you think you can invest your money in an online CD?

Yes No

 Will virtual meetings be of any inconvenience to you?

Yes No

 If you had the option of finishing your work online and pay a scheduled visit to the bank will
you do it?
Yes No

 Are you familiar with online banking?

Yes No
The bank’s services were highly recommended by them however they all had one issue in
common. Almost all of those asked were familiar with the bank’s online services. About 40% of
the sample never used online banking though were open to looking into the available services
and could try it. In order to lessen the times, they have to attend banks. Since the pandemic
gotten worse it had considerable impacts on clients’ decisions in taking the risk to attend at the
bank.

We also queried about reasons that could make a client take the time to actually go to the bank.
Most of the clients ask about the CD’s and the amount of money they have to tie up in the CD’s.
Others have business inquiries. Most of all the answers on the limited sample we have taken into
consideration was the two mentioned reasons. 74% of them were open to having used online
applications and hold virtual meetings instead of going to the bank. Whilst others were
concerned about the internet connection. They even suspected safety of the information that will
be traded online. This issue can’t be a problem, as the bank will set its own platform to hold
meetings.

The majority of the sample was willing to have scheduled online meetings. As most of them
were working labor, this according to them would be more convenient. As it would also save
their day, since they don’t have to take trips and bare any traffic nor waste the day in waiting for
turns. More than 50% of the sample agreed on having a prescheduled meeting to finish up their
paper work (if needed). Where the majority wanted to pay the bank a visit whenever they were
able to do so.

In this we were able to conclude that many people can be joining online sessions to learn about
these services and were ready to get on their digital banking services. This indicates that slowly
the bank will be moving most of the services online and people will eventually pay less visits to
the bank.

Supporting technical tool:

Covid-19 has destroyed the financial structure of many countries. Let alone the businesses that
had to shut down because of the financial losses that had them struggle to ensure the ongoing
basis of the business. For bigger well established businesses including corporations and
commercial banks this has triggered them to change the way they operate. Major change for
banks has been the digital, online and mobile banking. This has been the new era, where banks
amongst many others had to change their traditional financial services and make use of serving
clients using technology.
Online banking has been the trend for banks worldwide, although many countries like japan and
China have been using these technological advancements in the banking sector long time ago.
Other underdeveloped countries had to walk on the same steps to ensure their existence in the
markets during the pandemic. People on the other hand were very responsive, this has lead down
the tension of human resistance. For that reason, many banks are taking their customer service
stepped up to a more advanced level. Banks now compete on who can offer most of their
services virtually. Banks around the world are now accelerating their artificial intelligence
knowledge to remain in the business field.
Artificial intelligence has been hired to lessen the danger employees can be put in with many
people coming in to be served. Customers satisfaction is top priority in that they can still get their
services from clicking couple of buttons and following. This is to ensure that customers can still
get their financial services even through lockdowns and pandemic.
Many banks based in Egypt have adopted the artificial intelligence and made use of online
banking and mobile banking. Many have clients started using online banking while others still
prefer to make physical attending at the banks. Since Egypt has a low technological
infrastructure it would serves clients best if the bank starts offering services they could get
familiar with quickly. Bit by bit clients will be using Fintech (financial technology) like they
never had to use anything else to get their financial services.
It has been noted lately that people in the world market are looking for ways to avoid going to
public crowded places as to the pandemic that has strike the world. Since then many clients have
been demanding all services to be offered virtually. Which signifies that banking is entering a
new era of technology that with time will make all services accessible from any device.
Many banks have been partnering up with Fintech companies to provide them with newest
platforms to serve their clients. Although not all banks based in Egypt are hiring this principle
they will eventually be directed into hiring new ways to reach their customers. The use of online
banking and smart e-wallets have been increased since the lockdown. Many experts have
anticipated that digital banking would only last for two months of strict social distancing.
Looking at the other side many have been accommodated into depending on digital banking and
less customers are actually going to the banks to get served.
On the slow rate that banks are making use of the artificial intelligence, clients are beginning to
get used to the new norm of online and digital banking. Even though the telecommunications
infrastructure in Egypt is amongst the weakest, the switch to the online era is inevitable.
Due to the declining of the markets in the world, Egypt has suffered losses in the GDP the
Egyptian government is more willingly to face deficiencies. Hence the faster all banking sectors
react to this new era we live, in the more they can save up the economic health of the country.
This is to maintain the ongoing concern of all banks in Egypt.
Implications of the expected change on three dimensions:
Implications of the new service of online meetings on the bank’s financial
performance:
Covid-19 spread has had drastic negative impacts on the economy in general as a result of the
strict measures and social distancing that the Egyptian government has put in place to limit the
spread of the virus. The banking sector has been affected immensely by these measures as people
avoid going to crowded places and avoid as much as they can social contact with people, this had
a negative effect on CIB’s profitability and this was concluded after checking the interim (semi-
annual) income statements of the CIB for the year 2019 and the year 2020 after the outbreak of
the corona virus as in 30th of June 2019 the net profit was 5,358,020 thousand EGP , However
the corona virus outbreak lead to a decline in the bank’s profit as it reached 5,001,609 thousand
EGP as a result of a decrease in the number of clients who physically go to the bank to purchase
certificates of deposits or apply for loans so we have decided that the banks should shift most of
its services to online platforms such as online reservations, online meetings with customer
service agents and buying CDs online without having to physically go to the bank and socially
interact with employees. This won’t cost the bank much as developing an online platform only
needs an IT team to make the platform for online meetings and make them user friendly and
secure in order to avoid the leakage of any confidential information about the clients’ financials
the meetings with the customer service employees will also be recorded to ease the process of
internal audit and guarantee a good quality service for the CIB clients.

Online meetings are expected to have a positive impact on the bank’s profitability and would
help CIB increase its profits again by allowing the clients to communicate with the customer
service agents and perform their banking activities from the comfort of their homes. Thus, the
launching of the online meeting service is expected to have a positive ROI as the net returns
from this investment will definitely exceed its costs as we mentioned before it is not very costly
to develop a platform for online meetings. This will also have a positive effect on the CIB’s
market share as this would be a competitive advantage for CIB as other banks don’t have such
services so clients will prefer to shift to CIB because it would be safer for them to conduct their
banking activities efficiently without having to risk catching the virus so it would definitely
attract more clients. With this solution, CIB branches are supposed to achieve two goals at once
which are embracing the digital revolution and differentiation from competition with modern
communication tools. By applying the online meetings platform CIB is intended to go beyond
online banking pure players by providing their clients with remote and convenient services that
preserve human contact.
CIB will also be viewed as a socially responsible bank who cares for the community and is keen
on limiting the spread of the virus which would contribute to enhancing the bank’s image as a
socially responsible bank, which will consequently have a positive effect on the bank’s
profitability.

Suggested model for project implementation:

We suggest that the platform designed for online reservations and meetings would be user
friendly in order for the clients to be able to deal with it taking into consideration different social
classes and ages who will be using this platform especially that most of the Egyptians are not
technologically oriented so the bank should make sure that it is easy to deal with the platform by
conducting experiments and asking the clients for their feedback in order to fix any errors or
bugs and hear the clients suggestions to make an ideal platform that is intended to serve CIB
clients in the best way possible is also expected to arrange for online orientation sessions to
educate the clients about the newly introduced E-banking services to ensure that they are familiar
with this change and lessen the probability of fraud or error that might occur as a result of the
clients’ illiteracy.

Regarding the online meetings platform, each client can access this platform through the mobile
banking application or the bank website after signing in with his username and password. Clients
will be asked to fill a request to schedule an online meeting with one of the customer service
agents. The client will be asked to choose which branch he opened his account, his email, his
phone number. The client is also supposed to choose from a drop down list the purpose he wants
to schedule the meeting whether he wants to inquire about something concerning CDs, loans,
personal banking or commercial banking to save time and effort and inform the agent about what
exactly the client wants. The client has also the option to choose a certain employee by typing his
name in the meeting request. After submitting the meeting request the client will receive an
email or an SMS with a QR code or a link to the meeting where he will be able to communicate
with the customer service agent and inquire about the topics he want to address these meetings
will be recorded and saved to aid in the process of internal auditing and allow the bank to have
strict internal controls to minimize the risks that may occur as a result of implementing the new
platform and trace the errors if any occurred.

Regarding the online reservations there would also be a platform where the clients are allowed to
book an appointment with the employees and they will be given a specific time to go to the bank
in order to avoid the crowdedness and decrease the waiting times for the clients to avoid the
spread of the virus and protect the community.

Regarding the online purchase of certificates of deposits there would be a form on the bank’s
website and on the mobile banking application the client is required to fill a form regarding the
details of the certificate of deposit by choosing the type of CD regarding the period and the
frequency of interest payment whether annual, semiannual or monthly. The client is also
supposed to choose the type of account he wishes to buy the certificate of deposit from. The
client will also be required to enter the sum of money he wishes to allocate to buy the certificate. 
The client is also required to carefully read the terms and conditions and the fees in order to
agree on the terms and conditions and be able to purchase the certificate online and not having to
go to the bank, after agreeing on the terms and the conditions there would be a confirmation page
where the client will be able to revise the information he submitted and then he would be able to
confirm the purchase of the CD. No signature will be required from the client and he will be able
to receive his interest as it will be added to his active account so he doesn’t have to visit the bank
in person and risk catching the virus.

Regarding the checks, every checkbook will have a QR code that is scannable. The client can
scan the check on hand from their device in which a request will be received by the bank. After
the operation has been received and approved, money will be transferred to the account of the
check holder.

Customer centricity and concentration:

Customer-centricity isn’t as simple as asking customers what they want and making well on it,
though that’s certainly part of it. Customer-centricity requires the bank to re-evaluate what they
know about their customers and to better understand who their customers are, what interests
them, what they value, and what drives them especially after the spread of the coronavirus as
clients’ needs have changed in response to the virus. Clients now have different priorities as most
rational investors and clients are thinking of investing more and spending less due to the
increased uncertainty about the future and the collapse of the world economy. This altered the
clients’ priorities and made them more keen on investing their money and increasing their
wealth. Many individuals lost their jobs and others experienced a decrease in their income as a
result of the outbreak of the virus, as a result the CIB is expected to introduce the new service of
online purchase of CDs with less requirements in order to aid the clients to invest and receive
interest, to be able to cope with the worsening economic conditions. Customer centricity is about
building a relationship that is more meaningful than the transactional one banks traditionally
have with their customers a relationship that looks more like a partnership and that is attuned to
the customer’s needs.

In our opinion in order for the CIB to be customer centric the bank should attend more to the
diverse clients’ needs which have changed due to the pandemic as most of the clients now need
to perform their banking activities safely without having to go out in public places and risk being
infected by the virus. Development of the online meetings platform will definitely lead to
increased customer satisfaction. Clients will perceive the CIB as a bank who attends to their
needs and cares for their safety, and is keen on offering the highest quality service for its clients
even at the hardest times. 

CIB must take into consideration that a segment of the clients will not be familiar with these new
online services and might face problems while using those platforms thus some clients will not
be able to use those platforms. CIB can make online orientation sessions for those who are not
familiar with the platforms to make sure that they achieve maximum benefit. Those orientation
sessions are intended to create value for clients. Furthermore, to ensure that these online
platforms are convenient and safe for them to use. Also, to avoid errors and fraud that might
occur when using those online platforms.
Another implication of these online services is that some clients will face a connectivity problem
due to the poor telecommunication infrastructure in Egypt. As the majority of Egyptian
households have poor internet connections. This might negatively affect the efficiency of the
online meetings and other newly introduced E-banking services.

Implications of the expected change on CIB organizational structure:

The new online banking services will definitely have an effect on the organizational structure of
the CIB as more delegation of authority will take place. There would be less bureaucracy as
employees are expected to make more decisions. As they’re expected to offer services as they do
traditionally in addition to adopting the new technique of offering services digitally.

 Thus, have more job enlargement as they are expected to receive more empowerment. Such that
an employee can direct the customer through the cycle of offering their service fully without
getting back to a higher status employee. This will fall under the umbrella of reducing the
paperwork since all the work will be saved as a soft copy. This is to prevent the propagation of
the virus by limiting some activities such as: asking for the clients’ signature to perform any
operation and asking for the approval of their managers. Thus, employees will be allowed to
make decisions without having to ask for approval of their managers. It is expected that the
organizational structure will shift to a team based structure.

Job enlargement will take place for some jobs such as the call center employees as they will be
expected to schedule the online virtual meetings in addition to their main job, they will also
assign the customer service agents to the meetings according to the type of inquiry the client
wishes to do. They will also be responsible for recording the meetings so they can be audited
later on.

Conclusion:
We have introduced these ideas as we believe that the CIB should accommodate the risks by
adapting its operations to the new era of the corona virus and take into consideration the change
in the clients’ needs and priorities. CIB should also take into consideration the risks that the bank
is expected to face as a result of adopting these new ideas as the bank should have strong internal
control structure through periodic internal audits to make sure that operations are performed
efficiently and effectively and to prevent the occurrence of fraud or error that may threaten the
reputation of the CIB.

To conclude, in response to the current circumstances that the world experiences, businesses
should accommodate this change in order to survive. In this research, we have conducted a
questionnaire to make sure that the clients will accept the idea of virtual online meetings with the
banks employees and whether it would be beneficial to purchase CDs online and we have found
that the majority of the clients accept this idea and are open to conduct their banking activities
online.
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<https://www.cibeg.com/English/InvestorRelations/CompanyStructure/Pages/
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