Technology: The Future Of Online Banking And The Future

2.1Literature Review

Technology has always been a major driver of bringing changes and making things simpler in an auspicious manner. A technological breakthrough has carried major changes particularly from the most recent century. The internet is just one of the contributions of technology that has reshaped practically every component of our lives. With the boom of new technologies such as Internet and mobile phone it reshaped the banking of today from traditional banking to e-banking. Online banking is characterized as the services provided by the banks to its customers through the Internet. (Geyskens, I., Gie1ens, K., and Dekimpe, M.G).

Definition of Online Banking

It is fundamentally the idea of using electronic methods or means to transfer money electronically directly from one account to others account, rather than use of cash or checque.

The increasingly change in worldwide intensity in business conducts has improved the volume of bank in the world. It has produced additional banking knowledge and also improved customer demand of services given by banks like online support etc. (Balachandher, 2001).

According to Hagel and Hewlin (1997) e-banking became very attractive to customers and lots of banks, because of the technology have being accepted by the customers and they can now understand and have information about the internet.

These days banks are also confronting a ton of rivalry and need a high market share and provide better services to its clients so that they can attract the new customers and their existing customers do not try to switch to others banks in other words we can say that the banks want to penetrate in to market

For many customers online banking means 7/24 hour access to their account through compute...

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...up at the 64th position by the economist magazine in e-Readiness out of 70 countries (EIU, The 2008 e-Readiness Rankings, in The Economist Intelligence Unit. 2008). Technology gave birth to the internet due to which banking has also reshaped around 30 years ago. Internet banking services have not lessened the operating costs to the banks. However it also helped in expanding the customer satisfaction and customer retention (Polatoglu and Ekin, 2001). The TAM model provides the link between Perceived Usefulness, privacy and Security and consumer acceptance of online banking. ((Davis, et al., 1989).

The purpose of this research is to analyze the customer acceptance of the e-banking among Pakistanis and what are the factor that impact the customer acceptance are Perceived Usefulness, Quality of Internet and Security and Privacy. (Mathieson, K, 1991; Davis, F, D, 1989)