BUSI 2173 IT for Managers (BUSI2173-21F-C-ON_8H_ZM)
Team Research Project – BMO
Part 2 Final Report
Instructor: Dr.Ali Sher
Team member: Zhixian(Vito) Yang, Xuehui Sun, Han Jia, Yaseen Patel, Harjit Singh
Bank of Montreal (BMO) conducted a three-year project to improve and automate the retail banking business. Beginning in 1999, BMO established a global benchmark in retail banking technology. The effort is called the Customer First initiative, which included Technological change in Information system operations. It made use of Artificial Intelligence and Machine learning, particularly Reinforcement learning in order to develop the POS, Manager Workstation and Internet Financial Service applications.
The Bank of Montreal has undergone change by using advanced technologies. The organization used the advanced technology in the Information system and Manager workstation, meaning that there is an addition of Customer Relationship Management and processing of internet transactions. This helps them achieve reducing the operations time while increasing their profits.
The trend of the Information Technology has changed the whole concept of management and transactions. An essential change for Bank of Montreal is the use of various technologies in their information system processes, this includes robotic process automation, artificial intelligence, machine learning and reinforcement learning.
The paper analyses the underlying technology of the information system that allows the bank to deal with changing demands and involves new products, capabilities, and business processes. The system is based on a modular, high-performance decision support architecture equipped with a scalable, open interface communication process. Among key technologies are listed: neural networks, genetic programming, support vector machines, rule-based expert systems, and fuzzy logic.
Problems and solutions that our team found in recent articles:
- Bank of Montreal ought to start using Reinforcement learning to apply the principle of human motivation in its Information system operations; Point-of-Sale system (POS), Manager WorkStation (MW) . This method has a basing on principles that underlie the control of behavior, which has led to the development of software and hardware which would enable real-time training of applications.
The advancement of Bank of Montreal’s Information technology systems is a positive outcome in the face of recent technological change. All across North America, banks are updating there information systems to conform with the current technological methods of operation. The one exception though, is The Bank of Montreal.
Bank of Montreal obviously explores alternative approaches to process modeling and simulation to enable an overall better understanding of the bank’s information systems. Specifically, Bank of Montreal is interested in identifying alternate approaches to solve their current challenges in two areas: 1) Financial Institution Customer Relationship Management (CRM) and 2) Innovation of the Bank’s information systems and processes specifically the point-of-sale system (POS), manager workstation (MW), business transaction management (BTM), and its mainframe environment.
Solution and implementation plan: A Practical Plan for the Bank of Montreal… The implementation plan describes how the Bank of Montreal will set up a new small business strategy addressing their information system operations in the financial services industry. They will implement a reinforcement would be used by the software to make decisions, and how this method of learning will be applied. This plan is based on the given reader’s knowledge of reinforcement learning, as well as their familiarity with classical methods of Operations Research, as well as some software engineering knowledge.
The implementation plan describes the customer information system operations in systems analysis and design. POS: point-of-sales systems are computerized cash register-like devices and software that enable customers to perform such things as purchase and load their own items into the register, check out by using a personal identification number (PIN), and make change. manager workstation: A personal computer device used primarily in a workplace to access information, applications, programs, and files.
- The increasing prevalence of ransomware, which is when a hacker takes control of a computer and holds it hostage in exchange for a fee, is a major issue. Recent attacks have demonstrated how dangerous these attacks can be. For example, the Colonial Pipeline cyberattack in May forced the company to shut down operations, resulting in fuel shortages that pushed gas prices to their highest level in seven years. To get its operations back online, the company had to pay the hackers nearly $5 million.
Solution and implementation plan: To ensure you have fewer vulnerabilities to exploit, keep your operating system patched and up to date.
If you don’t know what software is or what it does, don’t install it or give it administrative privileges.
Install antivirus software to detect malicious programmes like ransomware as soon as they appear, as well as whitelisting software to prevent unauthorised programmes from running in the first place.
And, of course, make regular and automatic backups of your files! While this won’t prevent a malware attack, it can significantly reduce the damage it causes.
- More workers start to work from home which causes the lower efficiency of work
Even though workplaces are slowly reopening, employees working from home will continue to be a challenge. Most businesses will most likely implement a hybrid solution, in which employees spend some time in the office and some time at home. People may now be using devices and accessing networks from a variety of locations, posing a security problem.
Solution and implementation plan: A more stringent software bill of materials (SBOM), which is a list of all the components used in the creation of a programme, is one solution. More companies should request an SBOM, and more vendors should provide one, according to Anand. “I’m going to give you a bill of materials, and you’re going to hold me accountable for it,” he says, “and I’m going to attest that those are the components that make up the entire stack.”
Another option, according to McNutt, is to bring IT purchasing back into the IT department, rather than allowing everyone to buy whatever software they want. “When you don’t have a single place in the organisation that buys those hardware and software entities,” he says, “it’s becoming increasingly difficult to understand what your supply chain even looks like.” “As more and more of those things come onto that same network, the ability to isolate and protect that network becomes increasingly important.”
- BMO was searching for a remedy to the issues affecting its assistants without overburdening engineering with new capabilities for in-product assistance.
The banking system is making the transition to the internet age. The transformation of online sites to help consumers and generate income is currently among the top goals. As seen, BMO intended to modernize the current programs, resulting in a significant improvement in the online experience for its clients (FisGlobal, 2021). The Bank of Montreal (BMO) wanted a mechanism to reduce any clients’ problems during the shift. In addition, BMO’s helpline was already overburdened with assistance inquiries and was not prepared to manage any further influx of queries due to the service enhancements (FisGlobal, 2021).
Specifically, BMO was searching for a remedy to the issues affecting its assistants without overburdening engineering with new capabilities for in-product assistance. The Bank of Montreal also wanted to ensure that consumers were swiftly transitioned to new features, rather than depending on mails and other exterior communication techniques (McGowan, 2017). Customers have expressed a need for new ways to learn and obtain assistance without waiting on hold for call centre staff for extended periods.
Solution and implementation plan: The first solution was to make it as convenient and straightforward as possible for users to browse its website. One issue was that consumers never knew they had made a mistake. Assisting employees were being swamped with prominent calls to solve comparatively straightforward queries, which was a source of frustration (McGowan, 2017). A second solution was implementing a protocol that might clear up consumer uncertainty in a time of need, without requiring customers to call customer service and enable customers to use the site’s capabilities without experiencing annoyance was required by BMO.
BMO uses WalkMe to help its customers through consumer banking procedures and daily business operations, resulting in a more positive overall customer experience for its customers. Shoutouts, clever tips and Walk-Thrus divert calls away from customer support, resulting in speedier identification of conflicts and more establishment of innovative products due to the implementation (Staff, 2021). BMO can strengthen its present support system while involving its IT team, thanks to WalkMe’s fully prepared, customizable offering, which is now available (Staff, 2021). This allows BMO’s IT department to concentrate on projects that generate income and are essential to the company.
- The costumers are still facing many challenges throughout their BMO transactions.
Bank of Montreal has tried various ways by which they could offer better services to their customers and make their online transactions much faster. On the other hand, if we look deeper into the Bank of Montreal’s online services, the costumers are still facing many challenges throughout their transactions. From the online reports it indicates that “45% of the costumer’s face problems for mobile banking, 36% of the costumers face problems for logging into their accounts and 18% of the costumers regularly face challenges in their Online Banking.” (n.a, 2021) according to the reviews of Bank of Montreal costumers are not being able to log into their accounts and they also face difficulties in paying their daily bills and daily transactions.
Solution and implementation plan:
The solution to this problem is that Bank of Montreal must implement a faster IT system which can help them to provide their customers a faster online service and implement a better IT support system which is basically a helpline that can guide and help costumers that face problems in their online transactions 24/7.
Bank of Montreal must hire an IT specialist that can identify what problems most of their costumer’s face while using online banking. After collecting the data, the company then should allocate a project team for the IT specialist and dedicate each member of the team to solve problems in each online service that the bank offers. Bank of Montreal should also partner with a reputed IT company which will help Bank of Montreal to increase their quality of services and decrease the number of problems being faced by their customers.
As the company grows, the IT requirements of the company also increase. In today’s competing business environment IT advancement is very important as majority of the costumers have stopped going to the bank physically and started using online banking for their day-to-day banking needs.
Applicable, N., Hennessy, C., Cohen, H. R., Eitel, M. S., Gerlach, C. A., Fish, S., … & Demmo, N. G. BANK OF MONTREAL.
XI, Y. P., & Min, C. H. E. N. (2017). Application of data mining technology in CRM system of commercial banks. DEStech Transactions on Engineering and Technology Research, (eeta).
FisGlobal. (2021, July). BMO Harris bank selects FIS to modernise core and digital banking platforms – Press releases | FIS. FIS Global. https://www.fisglobal.com/en/about-us/media-room/press-release/2021/bmo-harris-bank-selects-fis-for-modernization-of-core-and-digital-banking-platforms
McGowan, J. (2017, April). BMO: Digital Transformation In Personal Banking. Adaptive Authentication, Electronic Signature, Mobile Security | OneSpan. https://www.onespan.com/sites/default/files/2018-11/OneSpan-CaseStudy-AnalystReports-LT-Model_Bank_BMO.PDF
Staff, V. (2021, April 15). Bank of Montreal adopts pelican’s new processing and payment automation solution. Retail Banker International. https://www.retailbankerinternational.com/news/bank-of-montreal-adopts-pelicans-new-processing-and-payment-automation-solution/