a survey of it usage patterns in banks in jordan 2011 - table of contents

A Survey of IT Usage Patterns

in Banks in Jordan

Arab Advisors Group A member of the Arab Jordan Investment Bank Group

January 2011

Analysts:

Danya Nusseir Mohammed Al-Shawwa

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A Survey of IT usage patterns in banks in Jordan

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Table of Contents Section I: Introduction and Background .......................................................1

Section II: Survey Results and Analysis ........................................................2

General information on banks .......................................................................2

Server usage .................................................................................................8

Networks ....................................................................................................34

Internet…....................................................................................................42

Websites…. .................................................................................................49

Online banking (e-banking) and phone banking services............................52

ICT expenditure ..........................................................................................59

Survey findings...................................................................................59

Estimated ICT expenditure for the banking sector in Jordan ......................78

ICT policies .................................................................................................91



List of Exhibits Exhibit 1: Representation of the ten banks that filled the survey................. 1 Exhibit 2: Banks in Jordan............................................................................ 2 Exhibit 3: Location of the banks’ headquarters ............................................ 3 Exhibit 4: Number of banks’ branches inside Jordan .................................... 4 Exhibit 5: Number of banks’ employees inside Jordan.................................. 5 Exhibit 6: International branches................................................................. 6 Exhibit 7: Number of branches outside Jordan............................................. 7 Exhibit 8: Types of dedicated servers at the banks ...................................... 8 Exhibit 9: Number of servers used at the banks’ headquarters .................... 9 Exhibit 10: Banks’ server vendors .............................................................. 10 Exhibit 11: Operating systems used on the banks’ servers......................... 11 Exhibit 12: Reasons for using Linux/UNIX ................................................. 12 Exhibit 13: Use of a centralized datacenter for hosting branches’

applications and systems..................................................................... 13 Exhibit 14: Location of the centralized datacenter ..................................... 14 Exhibit 15: Origins of Operating Systems................................................... 15 Exhibit 16: Origins of the Core Banking Systems (CBS).............................. 16 Exhibit 17: Origins of office solutions......................................................... 17 Exhibit 18: Origins of security software ..................................................... 18 Exhibit 19: Origins of accounting/financial solutions ................................. 19 Exhibit 20: Origins of Customer Relationship Management software (CRM)20 Exhibit 21: Origins of Sales Management software .................................... 21 Exhibit 22: Origins of Specialized Management solutions........................... 22 Exhibit 23: Origins of Enterprise Resource Planning (ERP) solutions ......... 23 Exhibit 24: Origins of industrial control solutions ...................................... 24 Exhibit 25: Origins of HR personnel solutions ............................................ 25 Exhibit 26: Origins of HR payroll solutions ................................................. 26 Exhibit 27: Origins of legal and compliance solution .................................. 27 Exhibit 28: Origins of archiving and document management solutions ...... 28 Exhibit 29: Origins of trading system solutions.......................................... 29 Exhibit 30: Origins of Inter-bank trading systems...................................... 30 Exhibit 31: Availability of disaster recovery sites....................................... 31 Exhibit 32: Location of disaster recovery sites ........................................... 32 Exhibit 33: Method of transfer of operations to the disaster recovery sites in

case of emergency ............................................................................... 33 Exhibit 34: Vendors of networking equipment ........................................... 34 Exhibit 35: Connection of branches to the headquarters ............................ 35



Exhibit 36: Technologies used to connect the banks’ branches together.... 36 Exhibit 37: Inter-branch connection providers........................................... 37 Exhibit 38: Availability of remote access to employees .............................. 38 Exhibit 39: Number of operational ATMs per bank ..................................... 39 Exhibit 40: Vendors of ATM machines ........................................................ 40 Exhibit 41: JONET membership .................................................................. 41 Exhibit 42: ISP subscription ....................................................................... 42 Exhibit 43: Type of Internet connection used in the banks......................... 43 Exhibit 44: Average Internet speed for the banks’ branches...................... 44 Exhibit 45: Banks’ overall satisfaction with ISPs’ quality of service........... 45 Exhibit 46: Banks’ rating of Internet connections speed ............................ 46 Exhibit 47: Banks’ rating of Internet service availability............................ 46 Exhibit 48: Banks’ rating of ISPs’ technical support/customer care........... 47 Exhibit 49: Banks’ rating of Internet connection prices.............................. 48 Exhibit 50: Website availability .................................................................. 49 Exhibit 51: Languages available on the banks’ websites ............................ 49 Exhibit 52: Hosting of the banks’ websites................................................. 50 Exhibit 53: Services provided on the bank’s website.................................. 51 Exhibit 54: Availability of online banking services (e-banking).................. 52 Exhibit 55: Services available through online banking (e-banking)............ 53 Exhibit 56: Percentage of the banks’ clients who use online banking services

(e-banking).......................................................................................... 54 Exhibit 57: Availability of phone banking services ..................................... 55 Exhibit 58: Services available through phone banking ............................... 56 Exhibit 59: Percentage of the banks’ clients who use phone banking services

............................................................................................................ 57 Exhibit 60: Availability of prepaid shopping cards...................................... 58 Exhibit 61: Average cost per ATM............................................................... 59 Exhibit 62: Banks’ yearly expenditure on Internet connections ................. 60 Exhibit 63: Banks’ average yearly expenditure on data services ................ 61 Exhibit 64: Banks’ average yearly expenditure on voice and video

conference solutions............................................................................ 62 Exhibit 65: Banks’ average yearly expenditure on hardware maintenance

and upgrade......................................................................................... 63 Exhibit 66: Banks’ average yearly expenditure on computer equipment and

software............................................................................................... 64 Exhibit 67: Banks’ average yearly expenditure on annual licensing for

software............................................................................................... 65



Exhibit 68: Banks’ average yearly expenditure on training for software and

networking .......................................................................................... 66 Exhibit 69: Banks’ IT budget for 2008........................................................ 67 Exhibit 70: Banks’ IT budget for 2009........................................................ 68 Exhibit 71: Banks’ IT budget for 2010........................................................ 69 Exhibit 72: Banks’ budget growth between 2009 and 2010........................ 70 Exhibit 73: Budget allocations areas for 2011 ............................................ 71 Exhibit 74: Banks’ planned/expected expenditure on data services for 2011

............................................................................................................ 72 Exhibit 75: Banks’ planned/expected expenditure on voice and video

conference solutions for 2011.............................................................. 73 Exhibit 76: Banks’ planned/expected expenditure on hardware maintenance

and upgrade for 2011 .......................................................................... 74 Exhibit 77: Banks’ planned/expected expenditure on computer equipment

and software for 2011.......................................................................... 75 Exhibit 78: Banks’ planned/expected expenditure on annual licensing for

software for 2011 ................................................................................ 76 Exhibit 79: Banks’ planned/expected expenditure on training for software

and networking for 2011 ..................................................................... 77 Exhibit 80: Representation of the eight banks that disclosed information

about spending on Internet connections.............................................. 78 Exhibit 81: Estimated Internet spending.................................................... 79 Exhibit 82: Representation of the five banks that disclosed information

about spending on IT services ............................................................. 80 Exhibit 83: Estimated yearly expenditure on data services ........................ 80 Exhibit 84: Estimated yearly expenditure on voice and video conference

solutions .............................................................................................. 81 Exhibit 85: Estimated yearly expenditure on hardware maintenance......... 81 Exhibit 86: Estimated yearly expenditure on computer equipment and

software............................................................................................... 82 Exhibit 87: Estimated expenditure on annual licensing for software .......... 82 Exhibit 88: Estimated expenditure on training for software and networking

............................................................................................................ 83 Exhibit 89: Representation of the five banks that disclosed information

about their 2008, 2009 and 2010 IT budget......................................... 84 Exhibit 90: Estimated IT budget for the year 2008..................................... 84 Exhibit 91: Estimated IT budget for the year 2009..................................... 85 Exhibit 92: Estimated IT budget for the year 2010..................................... 86



Exhibit 93: Representation of the four banks that disclosed information

about estimated/planned expenditure on IT services for 2011............ 87 Exhibit 94: Estimated/planned expenditure on data services for 2011 ...... 87 Exhibit 95: Estimated/planned expenditure on voice and video conference

solutions for 2011................................................................................ 88 Exhibit 96: Estimated/planned expenditure on hardware maintenance and

upgrade for 2011 ................................................................................. 88 Exhibit 97: Estimated/planned expenditure on computer equipment and

software for 2011 ................................................................................ 89 Exhibit 98: Estimated/planned expenditure on annual licensing for software

for 2011 ............................................................................................... 90 Exhibit 99: Estimated/planned expenditure on training for software and

networking for 2011 ............................................................................ 90 Exhibit 100: Availability of a documented ICT policy.................................. 91 Exhibit 101: Documented ICT policies available at the banks..................... 92 Exhibit 102: Number of employees with IT-related positions..................... 94 Exhibit 103: Methods for selecting IT-related vendors............................... 95 Exhibit 104: Outsourcing of IT-related services/equipment....................... 96 Exhibit 105: Services outsourced ............................................................... 97

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a survey of it usage patterns in banks in jordan 2011 - table of contents

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