Methodology Chapter on "Methodology EMV Standard Implementation in Iranian Banks Risks and Challenges"

Methodology Chapter 10 pages (3023 words) Sources: 7

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EMV in Iranian Banks

EMV standard Implementation in Iranian Banks Risks & Challenges

The purpose of this research is to understand the risks and challenges that are likely to be faced with the implementation of EMV smart cards in Iranian Banks. This technology is already being implemented in European countries and is now beginning to expand into other regions of the world. The initials EMV stand for Europay, Mastercard, and Visa. These three companies worked together to develop the standard. Other companies have also joined including American Express and other local banks around the world. EMV is also known by other names such as IC Credit and Chip and Pin, among others. The development of standards will allow integration between various banking systems and EMV card systems.

EMV is a relatively new concept, which means that there is little academic research to support it. Many companies are migrating this system and it is expected that its use will continue to increase, someday perhaps becoming the standards in electronic funds processing. The system can handle everything a standards credit card can handle, including card not present transactions. Like other electronic interactions, the risk of hacking and potential identity theft remains one of the greatest threats to their system. This research will examine the risks and challenges associated with EMV technology implementation in Iranian Banks.

3.1 Introduction

As EMV is an new technology, there are not a large number of studies available on them at this point in time This research will represent one of the first studies of this type in this particular field. At the current time, not enough information is available to determine the real risks associated with EMV. This study will focus on the perceived risks associated with its implementation. It will examine the risks and challenges before implementation, during implementation and after implementation of the system.

Although not much information is available that specifically addresses the risks and challenges associated with EMV, we do have studies from similar circumstances and can serve as guidance in the development of these study methods. EMV is similar to any other type of software specifically designed to be implemented on a multi-platform, international level.

In a study that examined Risk factors in enterprise-wide ERP Projects, Sumner (2000) used a case study approach. Although, this information gave specific details about the clients that were chosen and their particular problems, this method was only applicable to companies that were similar to the ones in the case studies. This method would not be appropriate in this study, because it is the goal of the researcher to be able to provide information that can be applied to a number of scenarios within the Iranian Banking industry. A case study approach would not yield the general trends that are necessary in the development of the Iranian banking system.

Risk assessment is a challenging research topic. The reason being that risk is a somewhat subjective topic. What some might consider a risk, others will not consider in the same light. In addition, risk is assessed in relation to the company's ability to meet the challenges and absorb the associated risks. For instance, a large banking institution might be able to take more risk on a failed IT project, than a smaller bank. This is where sample size becomes an important element in the externals validity of the project. The uniqueness of each situation is a key reason for choosing case study as the primary method for studying topics that are associated with risk. Case study is an excellent way to study risks that are already known. However, at this point in the topic of the risks and challenges associated with EMV the associated risks and challenges are only recently beginning to be defined.

At this point in research on the topic of the risks and challenges associated with EMV, a study needs to be conducted that addresses many of the important issues that must be addressed in the future. The purpose of the research is to gain general, rather than specific information about the types of risks and challenges that Iranian banks foresee in the adoption of this technology. Case studies are excellent research methodologies when the research is designed to address specific information. However, at this point, the topic needs to assess the types of risks that might be addressed in future research. For this type of general information, a survey study is often the most appropriate research method, as in the study conducted by Hall (2009). This study addressed the risk issues for Hispanic business owners. This type o risk assessment is similar to the information being sought in this study. Therefore, a similar study technique would be appropriate. This type of study will allow the researchers to gain categorical information on the types of risks that Iranian banks are likely to face in the implementation of EMV.

Whenever the research involves defining a set of factors that influence a certain action or proposed action, two types of questions must be asked. The first is what factors represent risk in the given situation. This type of question can be answered using quantitative survey techniques. The information can be reduced to numerical form and analyzed using descriptive statistics. However, the researcher often wants to know more than a simple yes or no answer in this type of study. Therefore, additional techniques must be used to gain a deeper understanding of the topic area.

Qualitative study techniques are often useful in areas where the information that is to be gained can not easily categorized into well-defined numerical parameters. Two primary methods exist for expanding on the numerical data. The first is to us open-ended survey questions. The second is to conduct follow up interviews in order to gain a deeper understanding of the answers provided in the survey. Both of these techniques will be used in this survey study in order to provide both definitive answers to questions about the risks that Iranian banks face in EMV implementation to allow expansion of these topics. Using a combination of research methods will allow the researcher to gain more in-depth knowledge of the research topic.

3.2 Literature Review

The literature review in Chapter 2 used a number of different types of sources to gain an in-depth understanding of the research topic. There were few academic sources available, therefore the types of documents included in the research review had to be expanded to include a number of non-academic sources as well. These sources were used to gain detailed information on the banking system in Iran and on EMV. The study revealed information that was used in the development of the study questionnaire and face-to-face interviews. The primary information gained during the literature review was used in the development of the survey questionnaire and to identify gaps in the literature that needed to be addressed in the questionnaire.

3.3 Choice of Research Method

Based on an examination of studies that address similar research topics, a quantitative research method will be chosen for this study. The primary reason for this choice is the type of information that is to be collected and the eventual application of that information to the Iranian banking system as it makes the changes necessary to adopt EMVsmart card technology. The primary research method in this study will be the survey questionnaire, but a secondary qualitative research method will be used to provide additional depth and support to this primary research method.

3.4 Research Approach

The purpose of the research study is to provide an overview of the types of risks associated with the implementation of EMV smart chip technology in Iranian Banks. The study will use a quantitative method and will include all banks in Iran as a sample population. This might seem like a lofty goal in many countries, but there are only around 20 banks total in the country of Iran. This study will not include foreign-owned banks, only those that are considered true Iranian banks. It will only include standard banks and will not include credit unions or investment banks (openoffshorebankaccountsfornonresidents, 2010).

Rarely in a research study does one get the opportunity to examine the entire sample population at once. Typical research studies only address a small portion of the target population. It is difficult to eliminate all of the biases that are contained within the sample population so that the results can be applied to individuals that were outside of the test group, but were similar to those in the research study. In the case of this study, the entire population of concern will be able to be included in the research study. Therefore, the results of the study will have no limitations in terms of external validity. The research will be valid and able to be applied to the entire population of banks in Iran.

The research study will be given to the entire population of banks in Iran, but the qualitative portion of the study, consisting of the interviews will only… READ MORE

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