NAME: LILIBETH L.

ORONG

CASE STUDY OF CAEDEN BANKING CORPORATION

Executive Summary

The evolution of information technology has altered the way banking products and services
are delivered around the world. It aids the bank in lowering operating costs, improving service
quality, and improving client relations. Caeden's team is made up of industry experts from
fashion, design, manufacturing, and electronics who have a track record of developing
interesting, elegant, and feature-rich products. They have a clear and proven sales and income
story based on the existing retail connections. The Clientele's rapidly changing needs, affected by
internet and mobile phone usage Caeden Banking Corporation had been changed into a digital
bank. As one of the most significant CBC, one of the Philippines' private banks, has created
PayJam, a banking service. Clients can use this service to send and receive money from one bank
to another a mobile phone. The characteristics of Caeden Banking Corporation (CBC) are
examined in this case to its management of knowledge and innovation, as well as its use of
electronic technology banking, improving its ability to do business with current and new clients.

Introduction

Many banking services are now available online. Paying bills, transferring payments, and
viewing account statements are just a few of the options available. Banks also use the internet to
deliver their latest products and services. Internet banking is done using a computer system or
other similar devices that can connect to the banking site. Using a Wi-Fi or 3G connection, we
may now access internet banking on our mobile phones. To deposit or withdraw money, get an
account statement, or stop a payment, we no longer need to go to the bank in person. All of these
duties, as well as many more, can be completed utilizing the banks' online services. We may also
maintain a constant eye on our account transactions and balance. We no longer need to have our
passbooks updated in order to know how much money we have in our accounts. Caeden is a
Soho, New York-based startup that focuses on the confluence of fashion, wearable technology,
and mobile applications. In a $1.4 billion industry that is expected to expand to $19 billion in the
next four years, their team is developing hardware and software breakthroughs. Through new
data metrics, contextualized mobile applications, and fashion-focused hardware, we're altering
customer expectations of wearable. They believe that the products we use today do not have to
make a choice between form and function. Caeden's strategy is to create various lines of jewelry-
inspired hardware that seamlessly integrates into our customers' daily life. They will produce a
unified product that will improve the users' everyday lives by seamlessly merging hardware and
software. Caeden's team is made up of industry experts from fashion, design, manufacturing, and
electronics who have a track record of developing interesting, elegant, and feature-rich products.
They have a clear and proven sales and income story based on the existing retail connections.
Most of economists agree that technical innovation is an important driver of economic growth
and human well-being. This innovation has a number of advantages, including increased
production and the provision of new and better goods and services to individuals, all of which
improve their overall standard of living. As a result of continual advancements in information
technology, banks have been able to provide their services in a more direct manner, allowing
them to better tailor their goods to the demands of their customers. Despite the fact that banking
has always been an information business, information technology has primarily been employed
to automate administrative procedures up until now. Banks can migrate a large number of
transactions from branch offices to call centers by taking advantage of these opportunities.
Accessibility has been increased as a result of technical advancements and the advent of new
service delivery methods that allow consumers to conduct business with service providers from
the comfort of their own homes and offices.

Electronic banking, as defined by Timothy (2012), is the use of the internet as a remote
delivery channel for services such as opening a deposit account, transferring cash between
accounts, and electronic bill presentation and payment. This can be done in one of two ways. To
begin, a current bank with physical locations can create a website and provide these services to
its customers in addition to the regular delivery routes. The second option is to set up a virtual
bank, with the computer server situated in an office that serves as the bank's legal address.
Virtual banks allow their customers to make deposits and withdrawal monies using ATMs
(Automated Teller Machines) or other remote delivery channels maintained by other institutions
for a fee. According to this research, electronic banking is the process of transferring money
from one electronic terminal device or medium to another.

Objectives

The following are the objectives of this study;

 To investigate the impact of electronic banking services on customer satisfaction

 To identify the impact of this innovation on the market
 To find out if the caeden banking corporation is well positioned for new challenges

SWOT ANALYSIS

Strengths

 Access at any time/anywhere

 Provide better convenience and greater efficiency
 Diversity helps to capture different types of market
 Faster transactions with lower cost
 Save a lot of time
 Increase efficiency due to automation
 Convenience for customer
Weaknesses

 Can only target specific customer

 Initial investment in technology will be expensive
 Security issues in digital mode
 Depends on the availability of the internet
 Multiple option for the customer
 Sensitivity to the global economy

Opportunities

 Integration of domestic banks with foreign markets

 Better development in areas such as risk management
 Economic growth
 Raising awareness of the benefits of digital banking among people
 Developing a modern IT base to avoid system and provide an efficient and secure
platform for online transactions

Threats

 Lack of effective rules

 Tough competition
 Uncertainty of the banking industry
 Any security-related issues or news may pose a threat
 Lack of customer loyalty
 Continual changing technology
 Risk of fraud and cyber crimes
 Global economic instability

Alternative courses of action

A. Putting more efforts on the E-banking services and products.

Pros
 Enable them to reach a large number of customers
 Greater accessibility compared the conventional banking
 Flexibility and interactivity

Cons

 It takes a long process or time

 It may difficult to oversee the actions or result of this changes.
 B. Caeden Banking Corporation must develop an anti-money Laundering (ALM)
technology
Pros
 Mitigate the money laundering risk
 It can gain trust and customer's loyalty
 Control for a secure transacting environment

Cons

 Additional cost
 Takes a long process and time

C. Adopt an extensive e-banking network

Pros
 Rural and remote areas of the country also benefit
 Increase banks ‘market and profitability
 Increase their size as it positively influences their financial performance

Cons

 Changes may be risky

 Uncertainty of the results

Strategic Recommendations

The characteristics of Caeden Banking Corporation (CBC) are examined in this case to its
management of knowledge and innovation, as well as its use of electronic technology banking,
improving its ability to do business with current and new clients. In order to reach a large
number of customers, they must put a lot of efforts on the E-banking services and products for
greater accessibility compared to conventional banking. Caeden teams’ must adopt an extensive
e-banking network and develop an Anti-Money Laundering (ALM) technology to mitigate the
money laundering risk and to gain the trust and customer's loyalty because of the security that
they will experience. Even if it takes more time and it may be risky but it can increase banks
‘market and profitability.

References

 Litvishko, Oleg & Beketova, Kamar & Akimova, Bibigul & Azhmukhamedova, Assem
& Islyam, Gulnara. (2020). Impact of the Digital Economy on the Banking Sector. E3S
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 Caeden, Inc. information. https://rocketreach.co/caeden-incprofile_b5968f02f6ac0fb2
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