Exploring Factors Affecting Adoption Of Internet Banking In An Essay.

The purpose of this study is to identify factors that are significant in explaining intention to adopt internet banking. Your responses are important in helping us understand banking customer’s acceptance of the technology.

The literature review will be divided in 5 areas:
Ease of use
usefulness
web security
attitude (depend on the 3 above variables)
intention to use (depend on the attitude)
the literature review will cover the below:
Most recent articles in the past 5 years or so.
20 articles from Academic journals (one book at maximum)
What does the process of literature review entail.
Reaching your conclusion about each of the articles
Allows expressing your views and thoughts

Overview of internet banking

Martins, Oliveira and Popovic (2014) stated that internet banking is one of the electronic payment systems. It enables the users of other financial institution conducting multiple financial transactions by website or online applications.  The software of internet banking can provide personal as well as corporate banking service offering various features like viewing balances of accounts, checking statements of recent transactions as well as making payments. On the other hand, access is generally through a secured web site using username as well as password. However, security is the major consideration in internet banking. Therefore, it is required to take effective steps to secure the process.

Apart from these, banks deliver latest products as well as services over internet. It is performed with the help of a system that is able to connect the site of banking via internet. Banking becomes no more limited in going as well as visiting the bank for several purposes such as depositing as well as withdrawal of money. In addition, requesting statement of account and stop transaction can be achieve by internet banking (Laukkanen, 2016). The online services are different from a bank to another. In order to understand about the online services, it is required to go through the welcome kit during opening an account. The general online services are transactional activities and non-transactional activities.

Online banking has several benefits such as on-demand access to the internet. There is no need to switch the banks when it is required to move. Sending a secured by online banking need more security compared to standard email.  There are several applications that will sync with the online banking information. It makes the process sticking to the budget easier. Online applications are managing transactions easier. It is vital to be careful when doing online transactions. In addition, it is required to ensure that password is strong so that others cannot crack it easily.  Monitoring accounts regularly for the fraudulent charges as well as avoid using the public Wi-Fi during accessing the accounts is not safe for the users. Internet banking has various advantages overall conventional channel of banking. It also allows conducting several transactions using the website of bank as well as offers multiple benefits. The benefits of internet banking can be listed as followed.

• Online banking is convenient to pay bills online and transfer funds between the accounts.  
• Internet banking is available 24*7 (Hanafizadeh, Keating & Khedmatgozar, 2014).
• Online transactions are fast as well as efficient. The funds are transferred from an account to another fast. It helps to manage multiple accounts easily.
• It plays a great medium for the banks for endorsing the products as well as service. It includes loans, options for investment and others.
• Online banking charges lower mortgage as well as loan rates.  
• Online banking consists of mobile capabilities. There are new applications that are created for expanding as well as enhancing the capability on smart phones as well as different mobile devices (Bratawisnu, Giri & Rinaldi, 2017).

There is several retail banks that provide promotions for the mortgages, credit cards a well as auto loans to the existing customers. The ability of visiting local bank as well as gaining financial advice would be helpful for the process. There are several retail banks that offer own mobile applications that feature similar financial services. The retail banks offer mobile applications that feature similar features, which are offered by online banks. After evaluation of the survey, it has been found that there is a proper distinction between the interest rates at the online banks. Hence, it is important to focus on the procedures and take effective actions so thay the users can obtain benefits.

Benefits of internet banking

Although there are several benefits of internet banking, there are some limitations of internet banking. The disadvantages of internet banking can be listed as followed.

• Comprehending the use of internet banking is difficult for a person who does not know the use of internet properly. There might be several sites offer demos on the process of accessing online accounts (Tarhini et al., 2016). However, it is difficult to use at the first go where pressing a different option can lead to face issues.
• Security of transactions is one of the major issues. The account information of the user might be hacked by unauthorized people over internet.

Chaouali, Yahia and Souiden, N. (2016) mentioned that one of the major factors in internet banking expansion and development is development of customer loyalty through the process. The organizations and customers acquire several ways of communication that leads to impact on the banking industry. Improving customer loyalty serves as one of the primary strategies in order to obtain competitive benefits in the banking. On the other hand, technological developments specifically in telecommunication along with information technology modernize the banking industry. However, reviewing related practices of e-banking practices, the customers’ loyalty become the major attendants of e-banking practices.

The organizations are striving for achieving customer loyalty as the core consequence in order to obtain competitive benefits. Hence, loyal customers are the valuable assets of a company in globalized level (Amin, 2016). They recognize that information technology become a vital pillar for creating loyalty among the customers. Layout of content and website, privacy, security, accessibility and influence in loyalty of the customers on the selected commercial banks are important to evaluate. On the other hand, internet banking allows users in doing banking transactions after regular banking hour. There is also positive relationship between internet banking as well as satisfaction of the customers. The factors have an impact on internet banking services like reliability, security, privacy as well as responsiveness.

On the other hand, the credit institutions did not make any efforts in order to investigate as well as support the organization (Arenas Gaitán et al., 2015). However, the situations have been changed significantly for drastic minimization of consumption of the banking products. In this perspective, it is required to rethink about the promotion strategies as well as paying more attention to the components that have a great impact on satisfaction of the customers consisting of digitalization of banking products without additional costs.

Internet banking allows the customers using the banking services from a system that has internet access (Phu et al., 2018). In addition, the features of online banking like statements of bank, loan applications, transferring funds, e-bill payments as well as aggregation of accounts allow the customers monitoring the accounts in a place. Bill payment is one of the major features of internet banking. Users can pay bills through online instantly using the online baking features.  However, lack of physical locations seems to make withdrawal of funds from online banks. The online banks recognized the issue as well as devised creative methods for the process. The online banking partners with ATM providers make easy case available. Several online banks restored  to the ATM free reimbursements to the circumvent as the lack of physical locations. On the other hand, the banks give ways access to cash fast as well as efficiently.  Hence, it is important to focus on the process.

Drawbacks of internet banking

Stoica, Mehdian and Sargu (2015) stated that ttelephone banking is one of the services provided by banks that provide the customers performing transactions over phone. The telephone banking system utilizes automated system to answer the keypad response and recognition of voice. In order to prove identity of the customers, it is required to provide numeric and verbal password. In most of the times, there will be customer representative to which the consumers speak. The customers are considered as the representatives who are trained to process the tasks that are available at the branch such as orders of chequebook, change of address and replacements of debit card.

SMS banking is one of the services permitting the banks to select the banking services from the users’ mobile through sms messaging (Takieddine & Sun, 2015). The pull messages are sent by consumers for some information in order to perform a transaction in the account. The customers have choice of list or the services that are required to inform. Interactive-TV banking is one of the services that allow the users interacting TV content as it is viewed. It is named as iTV. The customer can subscribe to television service for banking facilities.

In addition, there is 10% people used internet banking services that provided for usability and security concerns (Boateng et al., 2016). However, 88% of e-banking users visit banking households using mobile banking by 2020. The issues encountered by the disabled people as well as ageing population are using the e-banking system. In addition, use of internet banking service is easy for the users and can be able to interact with the use of internet. It is also easy to become skilful at the use of internet banking service and use of internet banking service become easy. Use of internet banking would be helpful to accomplish the task quickly. However, it is required to have proper security in internet banking so that the customer does not face any issues in using internet banking. The channels should be secured enough so that sensitive information can be passed securely.   

According to Hassan, Iqbal & Iqbal (2018), the internet banking system needs to be protected by several advanced as well as reliable security measures. It is important to keep comprehensive protection at the time of login process, reminders of password change. In addition, the single use SMS codes for authorizing the transactions are important.  There are several way in which fraudsters may try deceiving the process of providing personal as well as security details. Trojan is one of the internet viruses that receives installed in the system during browsing internet from unsecured websites. After installing Trojan in the system, the malware can monitor online activities as well as steals confidential information like passwords and numbers of credit cards. The phishing emails are the fraudulent emails that claim to come from authorized channel. It involves installation of malware and spyware, which can read sensitive information that consists of details of users, passwords as well as PINs during the contact on channel.

Developing customer loyalty

On the other hand, the money mules are recognized as unaware victims (Kazi, 2016). The fraudsters ask for upfront payment as investment, which will receive stupendous returns in order to make transactions using the account. The funds transfer can lead into criminal misdemeanours.

In order to overcome the security issues, it is required to take some steps like always using the genuine anti-virus software (Amin, 2016). In order to protect the system from phishing, malware as well as other security threats, genuine anti-virus software can be helpful to detect and remove spyware, which can steal sensitive information. In addition, the use of public Wi-Fi or using VPN software may lead to face security issues. Hence, it is essential to avoid those during the use of internet banking.  The users need to check latest updates of the operating systems that are used for internet banking (Al-Ajam & Md Nor, 2015). Apart from these, change of passwords can be helpful for securing internet banking.

Online banking needs to take specific precautions to ensure that the experience of users is safe as possible. The methods utilized for protecting online banking are encryption, fraud monitoring, two-step authentication, security questions and login alerts. Banks have tendency to utilize 128-bit encryption in order to protect the information. Fraud monitoring need to enabled in the process. On the other hand, two step authentication can be better option for security.

Internet banking can allow a user executing financial transactions through internet. Convenience is one of the major benefits through which several activities like paying bills and transferring fund can be performed easily. It is fast as well as efficient. However, some security issues are generated in internet banking for which specific measure need to take to get the potential benefits.  

References:

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Amin, M. (2016). Internet banking service quality and its implication on e-customer satisfaction and e-customer loyalty. International journal of bank marketing, 34(3), 280-306.

Arenas Gaitán, J., Peral Peral, B., & Ramón Jerónimo, M. (2015). Elderly and internet banking: An application of UTAUT2. Journal of Internet Banking and Commerce, 20(1), 1-23.

Boateng, H., Adam, D. R., Okoe, A. F., & Anning-Dorson, T. (2016). Assessing the determinants of internet banking adoption intentions: A social cognitive theory perspective. Computers in Human Behavior, 65, 468-478.

Bratawisnu, M. K., Giri, R. R. W., & Rinaldi, R. (2017, May). Association perception customer feedback with text network analysis in social media (case study on internet banking BRI, BCA, Mandiri in Indonesia). In Information and Communication Technology (ICoIC7), 2017 5th International Conference on (pp. 1-6). IEEE.

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