A ground breaking Arab Advisors’ survey reveals that the Jordanian Banking sector's total cumulative IT budgets totaled US$ 110 million in 2008, 2009 and 2010, averaging 37 million US$ a year.

1.
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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2. A Survey of IT usage patterns in banks in Jordan
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3. A Survey of IT usage patterns in banks in Jordan
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
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4. A Survey of IT usage patterns in banks in Jordan
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
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5. A Survey of IT usage patterns in banks in Jordan
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
© 2011 Arab Advisors Group Reproduction Prohibited

6. A Survey of IT usage patterns in banks in Jordan
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
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7. A Survey of IT usage patterns in banks in Jordan
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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8.
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