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EXECUTIVE SUMMARY
The developments taking place in information and communication technology are increasing competition in financial institutions worldwide. Thus, the deployment of advanced technologies is essential to achieve a competitive edge. Recently, the banking industry was highly affected by the technology evolution that transformed the way banks deliver their services, using technologies such as automated teller machines, phones, the Internet, credit cards, and electronic cash. In line with global trends, retail banking in Egypt has been undergoing many changes. In the past, banks faced significant uncertainty regarding investments in advanced technologies, but recently, banks have been investing heavily in technology to maintain a competitive edge. However, to better forecast the future, banks need to understand the different factors influencing customers' choice between traditional and unconventional banking instruments. This case covers the introduction and diffusion of retail banking in Egypt and the development in electronic delivery channels and payment systems in its marketplace. The case represents a model for the application of advanced information and communication technology in the context of a developing nation.
BACKGROUND
Global changes are penetrating all societies and communities around the world, bringing more innovations, competition, products, and services and introducing new trends, directions, and ways to do things differently. The Internet and the World Wide Web have introduced new ways for doing business (Kamel, 2001). This has created many challenges and opportunities in the global market-place to the main players of the business cycle; among which are financial institutions. Respectively, in order to face its increasing competitive pressures, they were required to recognize the need to perform a balancing act between achieving strategic goals and meeting the continuous changing customer needs and requirements. While strategic goals are usually corporate-specific and can be achieved in different ways, understanding and meeting customer needs may be studied and analyzed at the industry level. Today, the use of cutting-edge information and communication technology is becoming a cornerstone in dealing with the competitive pressure faced by different businesses around the world.
Over the last few decades, the banking industry has been highly affected by such technology evolution, with an emphasis on the way services are delivered to retail banking customers. Formore than 200 years, banking was a simple branch-based operation. However, things started to...