INFLUENCING FACTORS ON EFFECTIVENESS OF CORE BANKING SYSTEM IN PRIVATE BANKS IN MYANMAR

This study is to determine the influencing factors on effectiveness of Core Banking System in selected private banks in Myanmar. There are 27 private banks, 4 stated own banks and 13 foreign banks, so total 44 banks are doing the financial transactions in Myanmar. In this analysis, the relationship between the operational factor and the effectiveness of Core Banking System through the use of Linear Regression model. 120 respondents (20%) out of total 600 employee who are working at different position at selected private banks which are KBZ (Kanbawza Bank), CB bank (Co-porated Bank) and UAB (United Amara Bank) with different core banking vendors during their core banking function. Statistical survey is performed by analyzinfg the 5 factors in terms of flexibility, cost, reliability, speed and awareness which are determined whether they are the good signs of influencing factors on effectiveness of Core Banking System. Correlation analysis shows that; awareness, cost and reliability have significant relationship of all these variables to the effectiveness of Core Banking System. The other dimensions of flexibility, speed, operational factors show no distinction to change the effectiveness of Core Banking System. The study’s finding influencing factors on the Core Banking System’ effectiveness depends on awareness, cost and reliability. To order to be reduce operating cost, the customers can be consistent and the loyal customer can be received. The study recommends that the influencing factors on effectiveness of Core Banking System is followed, established that more employees have the skills to perform their work effectively. And need to be maintain the speed of bank transaction