Assessment of e-banking strategies in the banking sector in developing economies. Using gap analysis to develop e-service strategies in the banking context, a case study in Jordan.

Abstract

Strategic planners in retail banks are increasingly challenged to improve productivity, ensure high service quality and reduce operations costs while implementing their e-service strategy. This work aims to assess the current e-service operations strategy in the bank sector in Jordan and develop a framework for formulating e-banking strategies using gap analysis. Limitation of resources is hindering the shift from the current situation of the bank sector to a point where both the customer and the bank perspectives are fully matched and the gap between them is zero. If the available resources of the bank sector are utilised properly, the bank sector can move to a position near to that point which is closer to the customer requirements than the current situation. This can be achieved by constructing a model for an e-bank, the ¿Composite bank¿, which represents the industry best practice. Its performance captures the capabilities, resources and competences of the bank sector. A representative sample of the bank¿s customers was interviewed to fulfil a fully structured questionnaire based on the extant literature. Targeted managers in the bank 3 sector were then interviewed and completed a fully structured questionnaire based on the customer questionnaire. Both questionnaires were pre-tested to assure validity and reliability. The data analysis method was based on gap-analysis technique. The gap model provides a tool to identify critical elements for successful implementation of operations strategy and suggests actions to deal with them. The gap analysis approach was proved to be useful in other settings, such as measuring service quality, but there is paucity of applications in e-service operations strategies. An assessment tool and ¿working sheet¿ were delivered to pave the way for the strategic planners to assess the current situation of the e-banking strategy and to focus on the attributes/services which need more development. This procedure can be generalised to be applied in other industries (in service or e-service contexts), and other countries, both developed and developing.