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Banks banking on network security






It is a requirement, and it is also mandatory that organizations protect their information from misuse because information is an indispensable asset for any organization. The way an organization collects captures and stores information ought to take place in an ethical manner, whether it is the information of customers, partners or their suppliers. In any business that is operating in the current information age, it cannot avoid to collect and store a large amount of information that they use for business purpose. It is a commonplace for the banking industry to adopt the use of technology to offer better services to customers. The paper takes us through the answer for the question as to why banks would not want to adopt the online transfer delay policy.

Q 1. What reason would a bank have for not wanting to adopt the online transfer delay policy?

The reason a bank might have as to why it does not want to adopt an online delay policy is because we are living in a global economy where we have to communicate in an effective way with people (Colton, & Kraemer, 1980). In essence, the way banks work is also facing an evolution and a revolution, and this is impactful in the way they deliver their services to the clients and by so doing they can satisfy many people.  When we have a look at the case study presented in the textbook, it is only one bank, the Barclays bank that talks about the online transfer delay. The bank thus has the allowance to continue providing more security while forgetting that they are still losing feedbacks from customers as many of them requires real-time response. A bank may opt not to go for an online delay in the case when their clients desire that the online transfer be fast and the services of that particular bank those of other banks.

A 24/7 economy means that there is a satisfaction for many people. However, having a tight policy although it is may be good; it can discourage the clients from using a given bank for their transactions. The delay policy can result in many customers experienced delay of their transactions and thus developing a feeling of dissatisfaction.  The delay policy adoption will see banks having an ad hoc way of doing things without flexibility. It will seem ridiculous that a customer sends money and then his/her transaction goes into limbo. The transfer of money overseas can even take up to a week, and the lag can prompt suspicion from the clients (King, 1983). The delay of the transfer means that a bank suspects its system of security and also the delay can mean that the client is liable for overdraft fees. When a bank considers these factors, it can choose not to adopt the online money transfer delay policy because it may feel that the policy brings more harm to its business than good.

A customer views the delay from a different perspective rather than from the perspective of the bank, for instance, a client may see the delay as an incompetence of the bank management. By the fact that the customer views the delay as such is a reason for them to demand a quick response, making a bank work harder so as to speed the transfer process.  The delay also leads to a case where the bank personnel can begin to blame one another in the event when things fall apart, and this makes the client doubly frustrated. Also, for the fact that banks rely on SWIFT that in turn relies on intermediary banks makes it difficult for a bank not to adopt the delay policy because the delay is not solely in the hands of that particular bank.  No bank can be willing to be accountable for a mistake that is not her making.

The transferring bank and the receiving bank do share the risk of fraud meaning that a single bank is not responsible for the entire delay of the money. Once there is a wire transfer, the money goes. That creates a risk for a bank that has complex procedures for managing risks and pays a high fee for the same effort (Kim & Chung, 2013).  The tracking of the cause of delay may take a long time before the recipient receives the money because it has to go through ACH (automated clearing house) network. The network can sometimes have mechanical problems, and a bank may not want to be accountable for the delay. After the initiation of an ACH debit, the sender has no idea if an account from which it is sending money contains enough money for transfer (Syed & Raisinghani, 2000). The sending bank is also uncertain if such an account does exist. The bank on the receiving end, however, can terminate the transaction because of insufficient funds from the sender account or customer disputes.

The banks are also aware that there exist many limits to the speed of the online transfer delay and that makes them reluctant to adopt a policy that will rather tie them. The policy may bring a lot of conflicts to especially the people that are in charge of the transfer and that would raise an unending blame game. The delay policy can be limiting to the banks because more time between initiation of the transfer and its settlement offers a high opportunity to arrest any fraudulent transaction.  Also “the impact of faster processing is minimal on common applications like direct deposit, reoccurring billing among other applications. A bank can reschedule those transactions in advance so as to settle them on the desired date” (Piccoli, 2012).  It is, therefore, apparent that banks may have reluctance in adopting online transfer delays with the considerations of the factors highlighted above.


As highlighted above, the major reason as to why a bank can be reluctant in adopting an online transfer delay policy is because we are operating in a global economy. The global economy is 24/7, and it requires that the provision of services be as quick as possible so as to benefit from the use of technology in any industry.  The policy can be so trying to them to the extent that their customers are not happy with the delay, and thus it will lead them to lose many customers. The customers cannot understand the reason for delay because they want the delivery of the services be instant because it is an online process. That is why, therefore, a bank may not adopt the policy.


Colton, K. W., & Kraemer, K. L. (1980). Computers and Banking: Electronic Funds Transfer Systems and Public Policy. Boston, MA: Springer US.

Kim, K. J., & Chung, K.-Y. (2013). IT convergence and security 2012. Dordrecht: Springer.

King, J. L. (1983). Social equity and electronic funds transfer. Irvine, CA: Public Policy Research Organization, University of California.

Piccoli, G. (2012). Essentials of information systems for managers. Hoboken, NJ: Wiley.

Syed, M. R., & Raisinghani, M. S. (2000). Electronic commerce: Opportunity and challenges. Hershey, Pa: Idea Group Pub.

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 Dr. Michelle Robert

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