Electronic banking is sometimes defined as the provision of retail and small value banking products and services through electronic channels. It is also often used to describe processes in which customers can perform banking transactions without visiting a brick and mortar institution. Other innovations have taken place such as phone and internet banking which again provide customers the ability to access banking services from various locations and at a 24-hour by 7-days basis. At end-June 2004, 57 banks (41 domestic banks and 16 foreign banks) provided electronic banking services. Out of the 57 banks, 36 were universal and commercial banks (85.7 percent of the 42 operating universal and commercial banks) and 21 were thrift banks (23.6 percent of the 89 operating thrift banks). With these developments, customers are able to enjoy the many conveniences and lower costs that are offered by the said innovations.
However, it can be seen that the poor and low-income segment is still underserved or do not fully enjoy the benefits of such innovations. Another example is internet banking services, which has significantly increased convenience for clients, as they are able to perform certain transactions without leaving their home or workplace. However, this service is available only to those who have internet connection or are, at the very least, computer literate. (Jimenez and Roman, 2007) East West Bank is a subsidiary of the Filinvest Development Corporation (FDC), the publicly listed holding company of the Filinvest Group that evolved from a consumer business founded by Andrew L. Gotianun, Sr. in 1955. FDC is one of the country’s premier conglomerates, with business interests in real estate development, financial and banking services and the sugar business.
Through the years, East West Bank has successfully capitalized on the financial strength and synergy from the business organizations under the Filinvest Group. Since its official birth on July 6, 1994, East West Bank has emerged as one of the country’s fastest growing banks. Shortly after it formally opened its doors to the public, East West Bank had envisioned itself to become the preferred consumer bank of professionals, entrepreneurs, overseas Filipino workers, and homeowners. To this end, the Bank embarked on an automation program, and began to upgrade its existing technology.
As the Bank entered the new millennium, it laid the groundwork for implementation of measures that would simplify procedures and customer transactions and ultimately, result in better banking experience for clients. It expanded its ATM network and later introduced Internet Banking Facility, its online banking facility, to provide clients with more efficient delivery channels for products and services. The company has different products and services which offer. It includes personal banking, personal investment, corporate suites and credit cards. The bank has different card variants in the market nowadays namely Platinum Cards, Titanium Master Card, Dolce Vita, Privilege Cards, Laus Auto group Visa, Hyundai Master Card, Practical Cards. It caters different types of market from low to high class. Currently, the bank has more than 500,000 credit cardholders.
Background of the Study
The study will focus on the Electronic Statement of Account (E-SOA) Facility of East West Bank (EWB). An E-SOA is an Electronic Statement of Account. It has the same layout and details as the regular printed copy. It is saved in PDF format for easy readability. It has the same layout and details as the regular printed copy. It will be sent to the email address maintained in the system. The program was implemented in the first quarter of year 2012. E-SOA Facility is offered to all principal credit cardholders of EWB wherein hard copy of statement of account would no longer be delivered in mailing address. Delivery of statement of accounts would be sent automatically via personal email address of cardholders within five banking days from their statement date or cutoff. The facility is not compulsory to all credit cardholders. Clients still may or opt to enroll in this facility. The program was initiated by the bank to address non-receipt of statement of account (NRS) or late receipt of statement of account (LRS) issue in the bank.
Typically, the bank allots at most 10 banking day-delivery of statement of account from cardholders’ statement date within Metro Manila and at most 13 banking day-delivery of statement of account from cardholders’ statement date outside Metro Manila. EWB is currently connected with couriers who are responsible in mailing out the SOAs. If the delivery address is outside the trading, the bank delivers the SOA via Philippine Postal (PhilPost) which takes a longer period of delivery which causes NRS and LRS issue between the bank and the cardholders. The bank has a late charge fee of 7.5 percent of the minimum amount due (mad) or Php 500.00 whichever is higher and finance charge is being computed on average daily balance of previous total amount due, unpaid balance, and previous transactions. Since the bank has increasing credit card based, the demand for an on time delivery of SOAs must be addressed well.
Every time there are NRS and LRS issue, SOA retrieval requests would be forwarded and it will take for about three to five banking days. Afterwards, the result would be validated to the cardholders. If there will be any discrepancy in the courier’s report like unknown recipient, delivery date dispute, or others, complaint in courier delivery due to NRS/LRS issue will be forwarded and it will take for about five to seven banking day investigation. Once validated that the NRS/LRS issue is in fault of courier, reversal/ waiver of charges will be forwarded against the courier which means that the fees will be charged to the courier. On the other hand, under PhilPost delivery, if the cardholders claimed NRS/LRS issue, automatically reversal/ waiver of fees will be charged against the bank.
In case of NRS/LRS issue wherein the cardholders are in fault, accommodations of reversal/ waiver of charges can be forwarded but subject for approval by the management for about three to five banking days or five to seven working days depending on the number of requests and status of credit cardholders account. Another subject in this study is to address the environmental issues nowadays. The bank has decided to offer E-SOA Facility in order to help the environment. Paperless is now a current trend in the market. It will save time, energy, and financial status of the bank. It will also create an on time delivery of SOAs. Complaints will be avoided. Information dissemination will be forwarded to the clients in an easier and faster manner.