The role of technology in enhancing general banking operation: a study on United Commercial Bank Narayanganj branch

Abstract

This report, titled ""The Role of Technology in Enhancing General Banking Operations: A Study on United Commercial Bank PLC (UCB)"", explores the transformative impact of technology on UCB's banking operations, focusing on how technological innovations have improved operational efficiency, customer satisfaction, and overall service delivery. The study was conducted during a three-month internship at UCB’s Narayanganj Branch, where I was primarily involved in the General Banking Department, with exposure to Credit and Foreign Exchange operations.

Objective The objective of this report is to analyze how UCB has integrated technology into its general banking services and to assess the effects of this integration on operational processes, employee productivity, and customer satisfaction. The report examines key technological tools used by UCB, such as the Core Banking System (CBS), as well as digital platforms like U-Click, U- Net and U-Pay, which have allowed UCB to deliver faster, more reliable services to its diverse clientele.

Methodology Data for this report was collected through a combination of surveys and interviews. Surveys were conducted among 100 UCB customers to gauge their satisfaction with the bank’s digital platforms and overall service quality. In addition, in-depth interviews with employees provided insights into how technology has impacted their workflows and productivity. Secondary data, such as annual reports and internal banking documents, supplemented these primary data sources.

Key Findings 1. Increased Efficiency: The integration of CBS has revolutionized UCB’s operational efficiency by automating tasks such as transaction processing, account updates, and cheque clearing. This has reduced the time required to complete these tasks, improved accuracy, and minimized human error. 2. Enhanced Customer Experience: Digital platforms such as U-Net and U-Pay have empowered customers to manage their accounts, transfer funds, and pay bills remotely, leading to greater convenience and reduced branch visits. However, adoption of these platforms has been slower among older customers and those from rural areas, indicating the need for targeted customer education initiatives. 3. System Downtime: One of the significant challenges identified is the occasional system downtime, particularly during peak hours, which can disrupt both in-branch and digital services. These downtimes negatively impact customer satisfaction and delay transaction processing. 4. Employee Adaptation: While technology has reduced the workload for employees, continuous training is necessary to ensure that all staff members are proficient in using digital tools and can assist customers effectively. The need for ongoing training is particularly important for employees with limited prior experience in digital banking systems.

Challenges Despite the clear benefits, UCB faces several challenges in fully optimizing its technological integration:

• System Downtime: Frequent service interruptions during peak hours due to system overloads. • Customer Resistance: Slower adoption of digital platforms among certain customer segments, particularly older customers and those from rural areas. • Employee Learning Curve: Some employees face challenges in adapting to new technologies, necessitating further training and support.

Recommendations The report provides several recommendations to address these challenges:

1. Upgrade IT Infrastructure: Invest in more robust technology to reduce system downtimes and ensure seamless service delivery across all branches and platforms. 2. Expand Digital Literacy Programs: Offer workshops and personalized training sessions for customers, particularly targeting those less familiar with technology. 3. Continuous Employee Training: Implement ongoing training programs to help employees stay updated on new technological tools and provide better customer support. 4. Strengthen Cybersecurity: As digital platforms grow, UCB must enhance cybersecurity protocols to protect customer data and prevent breaches.

Conclusion Technology has played a pivotal role in enhancing UCB’s general banking operations by improving service speed, accuracy, and convenience. However, the full potential of these technological advancements can only be realized if UCB addresses its system downtimes, improves digital literacy among customers, and continues to invest in both IT infrastructure and employee training. By doing so, UCB can ensure its continued success in an increasingly competitive banking landscape, balancing traditional banking values with modern digital innovations.