Internet Banking

Review of Related Literature
Presented in this section is the related literature and studies taken from books of the library, magazines, newspapers and internet websites to provide information about the study.
Safeena et al (2010) determines the consumer's perspective on internet banking adoption. Finding shows that perceived utility, perceived simple use, client awareness and perceived risk are the necessary determinants of internet banking adoption and have robust and positive impact on customers to simply accept online banking industry.
Uppal, R.K (2011) threw clean on growth of information technology in varied banks. The target of this analysis is to investigate the extent of technological developments in varied bank groups. Findings shows as compared to new non-public sector banks and foreign banks, publicly sector banks terribly less it's taken place. The utmost technology is going down in new generation non-public sector banks and foreign banks.

Bahl ,Sarita ,(2012) determined that security and privacy problems are the massive issue in e-banking. If security and privacy problems resolved, the long run of electronic banking is terribly prosperous. Rahman., et al (2012) determined that e-banking continues to be a brand new technology in Bangladesh. Kaur., et al (2013) shows that there's no important distinction in facilities determining the customers' usage of internet banking services of Public-sector, Non Public-sector and Foreign Banks in India.
Hua (2009) explicit security idea refers to the potential of defending against potential fears. However in internet banking it suggests that the potential of the online firm to safeguard the information and transaction of the client from being purloined. Apparent controls of the protection shows that up to what extent the web site for businesses is ready to safeguard from potential threats and is believed to be secure.
Liao and Wong (2008) through empirical observation explored the main concerns related to net enabled e-banking systems and consistently measured the determinants of client interactions with e banking services. So as to check customers' interaction with net banking, the respondents were asked to elucidate the extent of using internet banking services. The results urged that perceived quality, easy use, security, convenience and responsiveness to service requests considerably explained the variation in client interactions. Explorative correlational analysis and reliableness check indicated that these constructs were relevant and reliable. Substantiating correlational analysis confirmed that they possessed important convergent and discriminatory validities. Each perceived quality and perceived easy use have important impact on client interactions with e-banking services. Perceived security, reactivity and convenience conjointly represented the first avenues influencing client interactions. Specially, tight security management was essential to e-banking operations. The findings had social control implications for enhancing extent of e-banking operations and developing viable e banking systems and services.
According to Egwali (2008) security in e-banking implies that the private information and also the transactions of client are in safe hands. Laukkanen (2007) highlighted the attributes in multi-channel electronic banking. The primary objective of the study was to understand the various retail channel preference of online bank customers by examining their channel attribute preferences in electronic banking. For the analysis purpose, the author divided the customers into 2 groups those who pay their bills over the web, and those who use a mobile phone for the service. With the assistance of conjoined analysis, the results of the study discovered that internet and mobile users differ in their preferences towards electronic channels attributes in bill paying. It had been found that screen size followed by location and response time were the foremost necessary attributes for internet users. Nevertheless, locations followed by screen size and latency were the most necessary properties for mobile users. The author concluded that banks and producers ought to diversify client group so that the use of electronic banking techniques and services might be accrued. Motivated to use the web services offered by a similar bank due to trustiness of the client within the traditional industry. The results of the study recommended that to use e-banking; trust, income, age, sex, education and work were the most striking factors for the use of online banking services and also the banks can dilute their cost and widen their market through online banking adoption.
Gan et al. (2006) examined client decisions between electronic banking and non electronic banking in New Zealand. The authors evaluated that call to use electronic banking was hypothesized to be a function of service quality, perceived risk factors, value factors, service product features, individual factors and statistic variables. The findings showed that service quality, perceived risk components, user input factors, employment and education were the prevailing variables that influence clients choice of electronic banking channels. The authors ascertained that client use e banking due to its quality, convenience and dependability.

Lichtenstein and Williamson (2006) in their analysis article gave an outlook on how and which specific factors have an effect on the buyer decision, whether or not to opt for internet banking services within the Australian context. The findings of the study brought out that convenience was the most motive for client to bank on the internet, whereas there was a variety of alternative influential factors which will be modulated by banks. The analysis advised that banks will be able to manage client experiences with moving to internet banking as long as they understood that such experience involves a method of adjustment and learning over time, and not just the adoption of latest technology.
Nelubiri and Sinti (2006) examined the impact of internet banking on customers' perspective, their wants and behavior. The target of the study was to examine the internet banking adoption in Asian country. The results of the study indicated that for higher understanding of internet banking acceptance, it had been very necessary to look at client angle and perception towards internet banking. So, the banks ought to adopt such internet banking facilities that might enhance processing of group action, put down activity and customization.
Robbins (2006) tried to guage whether or not the adoption of e-banking by the banks affected the importance of bank location. The study looked into the state of client adoption of e banking product and growth of e banking product since 1995. The study conjointly investigated whether or not client selection had changed as a results of inflated e banking use and the way banks had responded. The study conjointly questioned why location was Boateng (2006) explored a number of the problems that affected the key choices of banks while adopting e-banking techniques. The selections were associated with entering e-banking, e-banking channel alternative, customers and managing conflicts. The findings of the study indicated operational constraints associated with client location, the requirement to maintain client satisfaction and also the capabilities of the banks. The author noticed the need for African banks to know client desires, corresponding service to supply, the resources and partnership needed to supply it, and develop acceptable e-banking ways that maximized price for both client and banks.
Chalam and Nageswara (2006) centered that as the computer touched every and each side of the economy, thus banking sector wasn't an exception to it. The target of the study was to seek out modification in banking sector through the techniques of e-banking. The authors evaluated many e banking product like ATM, EFT, ECS, EDI, telebanking, etc. E-banking had benefited to the individual through anyplace, anytime banking; to traders and merchants through immediate settlement of payment; to banks through unlimited network, on-line banking, attracting and holding the customers, debit and mastercard facilities; and to the state through economic process of trade, a lot of exports, a lot of transparency in business, etc. The researchers concluded that rising challenge in e banking was because of lack of awareness among individuals, no cyber laws by government and rarity of telephone lines and low automation of banking activities. They suggested that banks should adopt hardware and software package security measures, appoint skillful personnel and adoption of digital signature certification authority as to tackle the most important challenges in e-banking.
Kautish (2008) presented the paradigm shift of banking sector from ancient banking to online banking. The target of the paper was to talk about the derivation useful added tool of online banking industry which was used to attract new customers and retain the prevailing ones. It helped the banks to accumulate more business from existing customers. Individuals preferred to use online banking due to its convenience, higher performance, ubiquity, speed and its effectiveness. Further, the author mentioned two bank models integrated banking model where the banks offer internet banking services as an extension to their basic services like ATM and phone banking. So, it's a sort of hybrid approach and also the other was complete internet banking model, where the banks totally trust the online channel. To enhance the services through e-banking, banks should assume from the customers' perspective and there should be creative thinking and innovation in planning and implementation of e-banking processes. The author terminated that as e-banking was a comparatively new thought in the international banking situation so the better of this idea was nevertheless to return.
Suresh (2008) highlighted that recently developed e-banking technology had created unexpected opportunities for the banks to prepare their financial products, profits, service delivery and marketing promotion. The objectives of the study were to guage the distinction between traditional and e-banking, and to distinguish the core capabilities for the most effective use of e-banking. The author analyzed that e-banking are going to be an innovation if it preserved each business model and technology information, and troubled if it destroys each the model and information. He additionally differentiated e-banking from traditional banking in 5 ways in which, namely, value proportion, market scope, value structure, profit potential and worth network. However, in order to use technical and business capabilities of e-banking, banks should generate additional customers within and outside Asian nation in order that a lot of revenues can be generated that lead to higher way forward for Indian economy.
Sarangapani and Mamtha (2008) considered the effect of Information Technology on banking sector and its security associated aspects. As a result of recent developments in banking system and with introduction of Basel-I and II implementation; clients are more demanding nowadays and it needs innovation in banking services. The researchers found that currently the financial industry has been a lot of customer-oriented with unlimited market place, in depth product breadth and e-enabled services provided to the clients. The IT initiatives in financial business have resulted into diminution of time. Introduction of negotiated dealing system, screen primarily based trading and RTGS for on-line settlement of inter-bank transfers of fund had conjointly resulted into safe, secure and fast movements of funds. The authors conjointly studied e-security aspects of banking that cause harm and threat to the prevailing e-banking system. It includes unauthorized access to automatic data processing system or network, stealing info, e-mail bombing, information diddling, abnegation of service, etc. The authors concluded that existing legal framework was capable to meet the challenges of e-banking; and it had become essential to make awareness of e-banking among clients, banks and societies. Different enterprise have been created by the researchers to present a detailed look to the idea of electronic banking. The review of literature on condition that e-banking services have a negative impact on banks' gain within the short run owing to increased capital costs on account of technical and electronic infrastructure, coaching their staff and also to make the surroundings where the banks will electronically operate polishly. Nevertheless, these services have a prescribed effect on the gain of banks within the long-term. Despite the increasing importance of E-banking services, the analysis concerning E-banking in Indian context has been restricted. Whereas concluding, it may be same that e-banking services are complementary to the prevailing branch network and not a substitute to it.
Raja et al. (2008) evaluated the impact of e-payment system on the business opportunities. They distinguished that due to the growth of web users, several electronic payment mechanisms had been developed to cater the variety of candidates. The researchers assorted the electronic payments into three main groups, namely, cash like systems, check like systems, and hybrid systems that were a lot of classified to master cards, ATM cards and e-cheques. They distinguished three main issues related to e-payment that were security identified, low interest among businessmen, and high reliance on ancient payment ways. They similarly analyzed that there are technical and cultural problems that hinder the path of e-payments. However, to make e-payments a lot of sensible, security threats have to be compelled to be reduced; and people need to be completed that ancient payment ways were longer intense than electronic payment ways. They have to even be completed that plastic card payments were lots of convenient, easier and safer than cash or cheques.

According to Dhekra AZOUZI (2009), most respondents were between eighteen and 30 and there's no state of affairs within the gender distribution of the respondents: were male and female. The good majority of respondents were at least bachelor's degree . Thus, it seems that the respondent profile acknowledge by its age and its high level of instruction. ATM is the most well-liked electronic channel for banking; it's used entirely or collectively to traditional bank branch like internet banking that attracts the respondents.
Malarvizhi (2011) mention that educational standing is a vital socio-economic issue for analyzing user's perception on e-banking. Several studies have investigated the results of the customers' demographic characteristics like age, gender and academic level on their perspective towards completely different banking technologies and individual acceptance of new technology(Alsomali et al 2008).
The idea of Joseph et al. (2009) evaluated the impact of electronic banking on the service delivery by the banks to its customers. Researchers reviewed that after customers were in direct contact with the technology (such as internet banking), they'll exercise higher management, whereas once there was absence of direct contact (such as phone banking), lesser management was perceived. A sample of 440 e-banking clients was taken, and examined usable questionnaires were analyzed. Six factors model was accustomed adequately represent the information and also the factors chosen were convenience, accuracy, efficiency, queue management, accessibility and customization. The study examined customers' perception for e-banking services, attributes of e-banking services and client perception of e-banking. The study recommended that banks need to provide statements of all transactions; customers need to be provided toll free numbers; and banks need to conjointly develop electronic banking facilities to satisfy the requirements of aged and disabled individuals.
According to Aijaz Ahmed Shaikh et al, (2012) ATM occupies a vital position within the e-Banking portfolio. It's given the clients a high quality of life permitting them to access money and other financial info. Its role in promoting, developing and increasing the idea of 'Anytime anywhere Anyplace" banking is simple. It offers a true convenience to those that are on the run in their daily life, but at the same time, it conjointly carries an enormous component of risk. In this paper we've got investigated and incontestible a mapping flaw (bug) in the ATM Controller (commonly called financial middleware), which permits the ATM card holders of assorted banks to fraudulently withdraw money from the ATMs of ACB Bank restricted. The flaw remained undetected for nearly three months. Since the breach has been totally investigated, therefore, concluded that the banks' control system had failed to observe the implantation of mapping bug which divested the bank of over twenty one million Pakistani Rupees. In addition, lack of understanding more prominent management on the systems & procedures supporting ATM Infrastructure compete a major role in developing the bug. Considering the character of the fraud and also the degree of losses paper has suggested strong internal controls implementation over the payment system applications. An in depth review of fraud screening strategy is also suggested to make sure that the protection tools are optimized for their specific product or service. Turnkey ATM solution has conjointly been suggested for the ACB Bank Limited.

According to Woldie et al, (2008), several banking clients in African country still complain concerning the high service charges imposed by banks. These charges the banks argue are due to or bear direct relationship to their brick and mortar channel delivery technique costs.
Fatima, Amtul, (2011) Security threats will affect a financial organization through various vulnerabilities. No single control or security device will adequately defend a system connected to a public network. Several issues regarding the security of transactions are the results of unprotected information being sent between clients and servers.
Gary Zivkovich (2008), more expressed that online transaction is risky because all dealing takes place online. Despite of all security measures that banking drained on-line banking, there are still several fraud cases attributable to client and by disclosing the private details via electronic message (e-mail).
Mason Lewis (2010), expressed that credit card debt firms are suffering as several of the borrowers are finding difficulties in making repayments. Several of the credit card loans have become unhealthy credits for the credit card debt firms and also to customers. Credit card debt firms are agreeing for the settlement to refund some money. Indeed settlement assists to keep up the credit report as well.
Aslam et al (2011) cited that the majority of the respondents who were single believed that there's lack of security and there's risk and high percentage of hacking, and fear of incomplete transactions in using electronic banking.
Base on the study of Gabriele Sabato (2010), Credit risk models accustomed measure credit risk at counterparty or transaction level and take issue considerably by the nature of the counterparty. Rating models have an extended term vision (Through-The- Cycle) and are continually connected with corporate client, financial organization and public sector. As a substitute, grading models focus more on the short term (Point in Time) and are often applied to non-public individuals and, recently extended to small and Medium Sized Enterprises (SMEs).
According to Ted Torres (2011) in Davao city, One Network Bank inc. or ONB, are going to be opening five micro-banking offices (MBO). The MBOs will be placed in Brgy. Catalunan Grande, Brgy. Cabantian, Brgy. Bunawan, Brgy. Sasa and Piapi. Every MBO will be technologically enhanced as regular branches with cash dispenser machines (ATM), point-of-sales (POS), debit bills payments, electronic foreign remittances, money transfers, and net banking.
According to religion, V., & Kohli, S. (2009) the expansion and emergence of the internet over the past decade has led to the emergence of a brand new field of Electronic commerce. It's essentially the paperless exchange of business information and transactions. It's carried on electronically, typically through tools like the internet and the intranet. E-banking is one kind. It implies the availability of banking products and services through electronic delivery channel.

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