Case Study for Financial Institutions: Professional Topics for Business

This case study explores the impact of social media on free speech and hate speech, as well as the applications of facial recognition and AI algorithms in states. It also discusses error issues and associated problems in financial institutions and ethical issues of employees and employers in banks.

professional topics for business
Case study foe fi nancial institutions
C RO TOBE 5, 2018
student name
nstitutionI

Table of Contents
Introduction...............................................................................................................................................2
PART 1....................................................................................................................................................... 3
Speech on the Social Media...................................................................................................................3
Free speech Vs Hate Speech on Social media......................................................................................4
Free speech and Hate speech............................................................................................................4
Hate Speech........................................................................................................................................6
Applications of Facial Recognitions in States......................................................................................6
Algorithms like AI applications by States............................................................................................7
PART TWO...............................................................................................................................................8
Error issues and associated problems in financial institutions..........................................................8
Impacts of system failures to the Society...........................................................................................11
Impacts and risks to the economy of the general public and small business operators..............11
Ethical Issues of Employees and Employees in banks......................................................................12
Recommendations by developers in cases of such Failures..............................................................12
IT problems in personal Finance........................................................................................................13
List of References....................................................................................................................................14

Introduction.
Information communication technology has developed the world in all aspects. The development
has been experienced everyday whereby many changes have been experienced in all matters
which has resulted to a friendly and much busier economy. The daily trends with regards to
technology advancements has greatly affected the way the people in the world interact, socialize
and much more interacts. There are many areas which has been affected by the use of internet
and social media in making the end meets by individuals in a given state. Social media is one of
the area technology has been known to be changing each and every day there is always new
platforms which are created daily by developers and programmers to enable the users interact
closely as if there are together.
Social media has been a very fantastic platform whereby people can easily express themselves in
all ways especially when they have urging and very important information that need to be
expressed in a faster way thus bringing people together in some ways. Some of the platforms that
has been applied by many people are such us the WhatsApp chats, Messenger, Facebook,
Twitter, Instagram, WeChat, SMS, among many others. Most of these social media platforms
one can share and express your own thoughts, ideas or even share photos but the idea is that they
portrays one extension’s and personalities. Social media can be used to portray the ideas,
interests, views and much more helping people know who exactly you are as individual. One is
offered a platform in the social media whereby one can be able to be creative and be who one
aspire to be and get an audience to support for all of what you post to express yourself.
Social media have come with so many positive things with it but all of it all it has some of it
negatives which are driven towards destroying the way people relate. Social media has been used
as tool to expand tribalism and racism globally. Unlike in the real world that is known, where
there is well known that social manners and the etiquettes associated are sometimes termed to be
very restricting and thus more limiting to some people, people have felt that they really need to
have a lot of sense to the way they express themselves and the way their speech are used over the
networks which are online in all aspects.
In many social media platforms much of the contents posted can be easily monitored and thus
making it easy to remove them if its violating the sites policies but in other cases like in

Facebooks, twitters and YouTube which are known to have millions of followers and users it
may be very hard to watch or comment on status, videos or photos posted. This may make it not
easy to evaluate and more having no complete control of the social media platform. The above
has led to many people arguably desiring to express their feeling and ideas which may in some
situations be difficult to portray or express themselves like the way they would have done in
person or face to face conversation with the intended. Essentially the use of social media has
really changed the way people or individuals communicate and much behave either alone, in
groups or even in the community where they belong with each other (Peters, 2011).
PART 1
Speech on the Social Media
Recently the newsfeeds in the social media and in internet platforms has filled many people with
a lot of opinions. A good example is the case of terrible attack that was experienced in Paris,
Beirut bombings and racism cases which were running rampant in campuses like Missouri and
even Yale. There are guys who comes in social media and support such injustices and terrible
tragedies and much more others involving themselves with the vehement dissuasion and
disapproval towards such acts, opinions and actions.
There have been many topics which have sparked in terms of debates where many have become
so passionate in topics such as gender discrimination, racism, terrorism, refugees while others
have ignored such depending on their views, beliefs and even values as well as the state polices
where one resides. There are four types of speech that need to be understood closely are they
interconflicts in most cases when one tries to understand them one by one.
1. Hate Speech – This is a speech that is used to offend people or attacking people based on
their religion, race, gender, the country where one come from, ethnicity, religion,
disability cases, illness or diseases, originality and sexual orientation among other traits.
2. Obscenity – this is a speech that refers to the content that will offend strongly the
prevalent mortality with reference to time.
3. Harassment – this are behaviors which are unwanted as they make someone feel
degraded in one way or another, humiliation or even offended (Lata Nott, 2016).

Free speech Vs Hate Speech on Social media
Free speech and Hate speech
This is simply freedom of expression. When the language is developed with a structure that is
very complex and difficult words other than using the gestures as used by other people this is
referred to as the product of human intellect superiority. In this concept the freedom when one
can hold and express his or her own ideas through any available social media platforms without
any interference from anywhere, seeks, receives and impart all the needed information, ideas and
opinions through the social media platforms will be considered as vital in reference to protection
of the dignity of the specific being. This is referred to as the freedom of expression.
According Mogen’s, “one can argue it as the freedom of opinions and expressing one constitute
in the cornerstone of any democratic societies and thus a solid fundamental on the development
basis. Indeed, there are rights guaranteeing one freedom to express yourself widely which
sometimes are seen as if they are underpinning all the other rights of humans and freedoms of
democracy. If an individual lacks the rights to seek freely, receive and impart his or her own
ideas and much more opinions, then she or he will not be able to be able to benefit for all the
human rights in existence.
The above quotation articulates all the freedom of expression as one tries to exercise the
functions of democracy (schmidt, 2008). Free speech has two sides of it and that is the good and
the bad if applied on social media as explained below.
The Good.
The following are some of the consequences of the freedom of expression where specific
examples has been used to express.
1. There are people who have been finding it difficult when interacting with other people
but the use of internet and social media platforms has improved on that as it is a way
through which such people can express themselves by communicating without having the
feeling of self-nervous or even self-conscious. It is known that each and every individual
has all the rights to say what they think and feel they have a desire to be heard and thus
this has been a good way through which people who might be feeling less confident may
be able to make their stand. When one is feeling happy and very much comfortable then
the specific individual can easily express himself or herself in a more eloquent way and

this may possible lead to them even be able to gain a larger audience which in other
platforms may be very hard to get. The question that arose is that why should one stands
in hundreds and thousands of people and give a speech or a talk where in real sense can
just sit and relax at home and get online and he or she will get audience on the social
media platform chosen.
2. With regardless whether personal or business one can market, get to know of what is
going on globally (news) and views of what is trending. It is argued to be more effective
even than a conference room. Scowling should not be done at buttons and on the power
of re-tweet. This simply means that the story of a shy person who cannot face the
audience face to face can reach to millions than it might have even stood up in front of
the audience and thus making the social media more effective.
3. Social media has helped one to be herself and thus invoking the confidence to all those in
need of it. The reason behind this is because one cannot face all the criticism may it be
personal or even intimate as one don’t have to see anyone who maybe criticizing you.
Healthy debates can be initialized in social media platforms thus becoming an inspiration
to many as one can take enough time to compose himself or herself, whereas in other
situations people may criticize you as an individual which may be difficult thus this may
make one to panic and cause one to be defensive. Every individual needs to have
confidence in himself or herself and they should possess some beliefs and networking
that can be used to inspire and much more educate people in such.
The bad
Freedom of expression has harmed the society in so many ways where it has greatly affected the
way people view other people opinions on the social media platforms. Free speech (freedom of
expression) has fallen on the 1st amendment. There are people who have abused other people
rights from the constitution thinking that they have enough power in making or doing things the
ways they feel or want to. Most of the people in the community has turned this in to something
that will not hurt as individuals by that which will also affect the constitution that is known to be
existence. This has clearly made freedom of speech to be regulated in some nations as it can lead
to chaos if not closely monitored and evaluated.
Free speech has destroyed the center of the human life itself. Many people have agreed to be
more lenient in the approaches which are observed and justified to what has become acceptable

in the social media. The idea of freedom of expression has been used by some individuals as an
excuse in communicating their own opinions and ideas on matters that could be perceived to be
violating, offend others or even discriminate another person in one way or another. It is one
believe that each and every individual is entitled to their own opinions but it should have
limitations and that respect should be maintained always in the community.
Hate Speech
This is a speech that is used to offend people or attacking people based on their religion, race,
gender, the country where one come from, ethnicity, religion, disability cases, illness or diseases,
originality and sexual orientation among other traits. There are many times hate speech has
divided a nation, community or even relationships between specific individuals. The following
are some of the impacts that has been caused by use of hate speech over the social media
platforms.
Hate speech has been used as a tool for enabling discrimination among people in terms of gender
and race. A person may post a status or even a video that may be evident that the message is an
attack on a certain individual or a single ethnic society.
Applications of Facial Recognitions in States
Many are situations in many states where governments has started the application of face
recognitions in delivering services close to the people. Many government states have been
having access to a far wider databases with photographs using facial recognitions. Many have
been surprised to how the technology have grown with regards to duration of time. Facial
recognition has been used ranging from the private to public institutions. Some of the areas it
has been applied are such as.
Confirmation of students when they are taking exams on online platforms
They are used in stadiums by states and nightclubs globally for checking if they can
identify people who belong to the banned list.
For payment of items
Sometimes they are used by banking institutions or major event with long queues as
theme park rides.
Also used to unlock the phone or even a personal computer.

In terms of Countries and states Russia has over 150,000 CCTV cameras in Moscow which are
used for surveillance in the city. Facial recognitions have really been very powerful in that their
processing power may require some means to reportedly monitor about 2-5000 cameras in the
real time. Computers have been known to be very quiet powerful and much more enough in
running the minority report systems and in most cases the ongoing mass surveillance. NEC is the
major producer or manufacturer of Facial recognition applications and tech globally. Another
situations where facial recognition has been applied is in South Australia where police officers
and the CrimTrac department have been using it in sharing all the information that is used by the
nation’s police. Also National information is shared through Facial Recognition (Sturmer, 2017).
In this cases the basis has been put on the applications that are studied in the field where the
majority of things are done on facial recognitions as they use cases which may appear to be
falling in three categories depending on the state or Nation needs.
1. Security.
Many companies in any state have trained in deep algorithms in recognizing the fraud
cases, this has helped in reducing the need for passwords as used to be done traditionally
and thus improving the ability where we can distinguish between the face of the human
and that which is on the photograph.
2. Healthcare.
Many states have applied them in healthcare areas using the machine learning which is
combined with the machine vision thus making it more accurate as it can track patients
medication and how the consume and much more supporting the procedures in the pain
management.
3. Marketing.
With considerations which are ethical in fraught, marketing has acted as a burgeoning
domain with reference to the facial recognition and innovation and thus it is expected to
be seeing more of facial recognition as it has become more ubiquitous (Sennaar, 2018).
Algorithms like AI applications by States.
There are many applications which has been applied in prevention of crimes in many states.
Artificial intelligence has been one of the thing that has been applied by many companies and
cities globally in curbing and reducing crimes in a more quick way and much more responding to

crimes progress. The idea behind its success is because many crimes are predictable and just
requires one to sort the large volume of data and finding a pattern that will be useful in enforcing
the law. A good example where this has been implemented is in USA when they spent over 80
billion dollars on incarnating the states, locals and the FBI (Rieland, 2018).
If Artificial intelligence is applied many infrastructures in the city will become smarter and thus
more connected. There will be provision of real time information in the city as they strive to
detect the crimes as they happen or happened ranging from the security used traditionally to use
of smart cameras applied currently (Rudin, 2016). A company named Shot Spotter has been
using the technology of smart city infrastructure in triangulating the locations of the gunshots.
The other area that has been invested by many states is the use of cameras and surveillance and
the major three companies have claimed the use of computer visions and other Artificial
Intelligence techniques in spotting the potential anomalies of the criminal on real time
surveillance videos located at a remote data center where they easily monitor what is happening
all over the city. The three major companies are as stated respectively.
1. Hikvision. This is a chines company that is known for being one of the major security
camera producers and as announced they use microchips in creating the cameras so that
they can be able to run the neural networks which are right on the board (Faggella, 2018).
2. Cortica.
3. Cloud walk.
PART TWO
Error issues and associated problems in financial institutions
Many are times that many financial institutions find themselves stumbling due to failures in their
systems. The failure in the system sometimes can be caused by the system servers being down
maybe due to maintenance and even backups. The system recovery sometimes can such failures.
The problem that arose is that it is sometimes not known if there will be failures and if the
customers who use such banks or financial institutions will be affected in any way. In many
cases the clients or customers, the shopping centers such as supermarkets will lose a lot of
money as well as the financial institution as no transactions can go through thus all parties
involved ending up losing a lot ranging from the customer to the bank. The technology has
advanced in so many ways whereby financial institutions have introduced the use of mobile

banking in making the people transact anywhere at any time without restrictions 24/7 and seven
days a week.
According the three articles the failures has been caused by the software on the banks side. In
Commonwealth banks it was an outrage whereby its clients’ money in the accounts just
disappeared in the manner that they could not see it but only what was in the savings account
was available on their mobile banking accounts. The idea behind was that the big banks had
appeared to had wiped all the credit cards and all the loan balances of all their customers in a
widespread outage that was unprecedented. Many customers were frustrated and where in some
situations other felt disappointed as they tried making a purchase to end being disappointed when
making the payment as they could bit be able to pay using their credit cards. The sad news was
that about more than 6.5 million of Australian’s uses commonwealth bank online services and
since the problems led to them losing a lot of money within those hours the customers could not
access their balances in their banking accounts (Dudle, 2018).
The other article is that of NAB where the banks systems went down in some parts of the
country. The disruptions occurred on a weekend whereby many customers of NAB could not
access their mobile banking, ATMs and even the eftpos. The disruptions affected many people in
the manner that all customers across the TASMAN who were using NAB in New Zealand kept
tweeting all over that the systems were down from morning. The problem was caused by the
power problem which messed with the banks mainframe in Melbourne city (ABC_NEWS,
2018). The NAB bank after realizing the issue they tried to solve the issue within a very short
time and to avoid losing its customers NAB promised to compensate all its members 100
percentage for all the losses they incurred on the time the systems was down. On the third article
it spotted on the Visa Company as most of their users experienced so many problems with
paying using their cards. The problem appeared to be within the chips and the transaction pins.
The transactions at the ATM were not functioning as one could not cash out anything as the
system were down. These problems with VISA has been reported in many areas in UK as this
problem has escalated in many times (Guardian, 2018) The following are some of the errors and
associated problems that could have caused the major and mentioned financial institutions
systems for mobile banking and ATMs to be down.

Many information technology have become under spotlight in many cases as customers find
themselves losing on the problem caused by the banks. VISA Card Company is having a
problem as the failure of the server led to debit cards being declined for almost a whole day as
the ATMs booths could not dispense cash. Some of the major issues are as stated here below.
1. Incorrect Calculations. This is the functions that occurs with regards to the financial
and calculations date. The determinant is based on the functions of the mathematic
and their operator when they are involved.
2. Data edits which are incorrect. In the case of Commonwealth banks may be the
problem was the software failing to apply the existing edits in the data in the correct
manner. Some of the edits that can bring such problems are such as the encoding of
the prohibited entries of the day to be greater than the month dates e.g.“31” which
may not allow such because of dates differences.
3. The other scenario is having some inadequate software performances. This may
have caused the system to run slow in some parts in New Zealand for the users of
NAB and the slowing the response times and the rates of transaction in some areas.
The faults is caused by the software that is being in use lacking the major
performances updates thus leading to failure.
4. Misleading or Confusing data. Sometime the information or data inputted in the
bank systems may confuse the software and makes it to misbehave. Sometimes the
data that is shown by the system is correct but the user of the application cannot be
able to interpret it in all manners. This may not be a trivial problem.
5. Incompatibility between hardware’s and software’s installed. There are situations
where the software may become obsolete without the banks experts knowing and thus
leading to disruption like maybe in the case of Visa Company where there was a
problem with transaction pins. The idea can be on the basis where software’s based
functions are maybe founder on databases versions which are older and operating
systems.
6. Lack of support from the vendors. Financial institutions always employ a third
party when in need of maintaining such institutions hardware such as mainframe
servers. If the vendor of such frames lacks or ceases to offering support to the
company with the help with regards to the software product then the company may

fail. Some of this problems where there is lack of support the vendors may withdrew
maybe due to going out of the specific business or maybe if he gets to sell the same
services to another well-paying vendor (Rice, 2018).
There are other associated problems that can could have caused system failures in the three
financial institutions as indicated in the articles.
Maybe the debts that were made by defaults by the state government which created major
losses to the banks which had loaned them money
The crises in the currency a good example is that of the Euro breakup
The other one is the increase in interest rates in a sudden way.
Reversal of QE in a rapid manner where the potentials will cause big falls in equity prices
and in the value of the assets of the banks.
The failure to manage and recognizing all the risks associated with such failures.
Impacts of system failures to the Society
The society will undergo a lot of problems which are related while others are not. The reason to
as why the banks system failures will cause hectic is because it is the institution that underpins
all the activities where it creates, stores and transfer money. When there is failure in the system
the major impact is wealth destructions and erosion of confidence. There are some several
impacts that will be experienced which will be termed as risk as they will affect the economy and
the business as a whole (Grossman, 2002).
Impacts and risks to the economy of the general public and small business operators.
1. Macro Impact whereby it can be caused by too much reliance on the financial services for
the high proportion of GDP and thus employing and use of tax revenue being very high.
2. Lending Freeze.
3. There will be loss of time and money lost by the customers as they cannot be able to
access their money in the banks as the system is down.
4. The other idea is that many people will rush in to making decisions such as considering to
take loans in other institutions so that they can cater for the problems at hands as they
wait for the financial institution with their accounts to be back online and thus resulting
to some charges when

5. In many cases the public sector is put at a panic situation as one cannot access his or her
account without caring how much one have in the banks. All the people with the stated
accounts with financial institutions will suffer the same problem of not accessing their
accounts (IGD, 2013).
Ethical Issues of Employees and Employees in banks.
1. Self-interest in other cases it may sometimes transmutes in to being greed and very
selfish, which is unchecked with regards to the self-interest at the expense of expense of
another person. Greediness has become a kind of an accumulated fever (Booth, 2008).
2. Some people in the organizations may found them suffering from stunted of moral
development. This happen in three major areas namely: failure being taught, failure
looking beyond our own perspectives and inadequate proper mentoring.
3. People equating the moral behaviors with the legal behaviors which may disregard on the
facts that they may be knowing the actions are still illegal to them it may remain moral.
4. Professional duties and responsibilities conflicting with the demands of the company.
5. Lastly but not least is whereby the responsibilities of the individuals can just wither under
all the demands that are owned by the clients (Markula, 2016).
Recommendations by developers in cases of such Failures.
There are many situations that developers find themselves when such failures occurs and thus
leading to vigorous losses. One recommendation that should be given by developers is offering a
lot of maintenance to the already installed systems such that they know the system conditions
within different schedules.
The other thing is checking compatibility and latest updates within the system and how it affects
the people system in case black box are done. Another idea that the developers is if the system
has a consistent flow of information where they communicate with the system in a more easy
way and without major problems. This has helped the system developers to even predict cases of
failures which will result to early actions that can be solved even before it happens. Lastly but
not least is that in case of a system failure the developers should ensure that they are working
towards solving the problem but not taking advantage of such situations in making them rich.

IT problems in personal Finance.
Many financial industries have experienced so many problems over the past years of which many
have rotated around the operations of the new economic contexts in the crisis of finances, this
has helped in restoring the confidence to public and thus leading to competition with all the new,
aggressive and much more the non-traditional inventors and innovators.
There are five major five problems that are related to Technology that may affect the personal
finance.
1. The problem of reducing the breaches in security and the cyber theft, thus this has
increased the business value of the relationships of customers
2. Regulatory mandates being achieved having to comply Dave( , 2017).
3. Transforming many businesses in opening doors for all the mobile and all digital
financial experiences
4. Technology being leveraged for ensuring that there is a competitive advantage
5. Use of technology in improving the overall performance of the network.

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