Question 1
First Trade Union Bank is an organization that operates in the banking industry. The organization is small and trying to differentiate itself by targeting young people. Opening a new branch is too costly for the bank due to its small size. The innovation of a new savings product will also be expensive for the bank. The only way to attract more customers to the bank is by introducing mobile banking. Therefore, the bank decided to enroll mobile applications so as to enable its customers to enjoy mobile banking. The bank aimed at attracting Gen Y customers and retaining them. Mobile banking enables people to access the banking services through the use of their phones. It is convenient and economical for the customers. In addition, it helps the bank improve its internal operations by reducing the long queues. Customers don’t have to visit their banks to make financial transactions.
Question 2
First Trade Union Bank should avoid using social media such as Facebook and Twitter in the transfer of funds. There are many fraudsters who are working hard to hack into the systems so as to obtain customer data and use it to steal from the customers (Dharamsi, 2015). In addition, people use these social networks to engage in fraudulent activities and money laundering. They can also use these social media sites to violate the privacy of other customers. The bank should not allow the use of social media network in banking because some people can perform identity theft and steal money from the accounts of the victims. There is an increase in the number of cyber criminals, and bank mobile applications are being targeted by these criminals (Dharamsi, 2015). First Trade Union Bank should avoid the use of social media banking so as to protect its customers from theft.
References
Dharamsi, K. (2015, Feb 17). Avoid Fraudsters Trap when Banking via Social Media. DNA. Retrieved from: http://www.dnaindia.com/money/report-avoid-fraudsters-trap-when-banking-via-social-media-2061518
