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effects of ict on banks
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With the innovative changes in everyday life since the creation of the internet, the banking sector is no exception. The creation of value-added services through the internet such as online transactions and online banking, the traditional landscape of banking has been transformed to new lengths. Day to day banking and similar financial transactions through the digital medium have positively affected the live of many due to the derived benefits such convenience to complete financial transactions at their leisure. Banking institutes are often associated with having high levels of trust in relation security and privacy factors with regard to its physical environment. However this perceived notion has yet to be associated to the digital realm in its full potential. With the lack of physical interaction received through a brick and mortar setting, this creates a unique environment in which trust becomes a vital factor. For majority of users of online banking facilities, security and privacy concerns become of utmost importance as well as a deciding factor regarding the usage of such facilities (Turner et al. (2001)). Given these concerns, the lack of uncertainty and user’s trust in such conveniences creates and obstacle in the extensive adoption of internet banking and online transactions. Online banking transactions have unique characteristics such as the impersonal nature in relation to the online environment, reliance on technology usage and the uncertainty perceptions with regard to the open infrastructure used for transactions. As a result of these unique characteristics there is a tentative approach by consumers to utilize available online banking and financial services. Continues growth of the internet has lead to the cr... ... middle of paper ... ...ent facilities have an impact on the consumer’s usage of such facilities. Additionally these perceptions have a significant role in the future development of online banking and e-payment facilities. The objective of this proposed paper is to identify and understand what factors affect user’s trust & perceived security in online banking and e-payment vendors. Works Cited 1. Lee, K.O., Turban, E. 2001. A Trust Model for Consumer Internet Shopping. International Journal of Electronic Commerce, 6(1): 75-91 2. Maijala, V. (2004). Outlook of the Information Security in E-Business 3. Suh, B., & Han, I. (2002). Effect of trust on customer acceptance of Internet banking. Electronic Commerce Research and Applications, 1, 247-263. 4. Turner, C. W., Zavod, M., & Yurcik, W. (2001). Factors that Affect the Perception of Security and Privacy of E-Commerce Web Sites.
This is because for example, if you buy a designer watch on an e-commerce site, you don’t know 100% if it’s original or not, which is why some customers don’t trust e-commerce sites. Also some customers have trust issues with e-commerce businesses because they think their personal details are not private. Customers also have issues when e-commerce sites personalise their usage of sites, by recommended other products, centred on what they purchased or searched for before.
When an organization determines that e-commerce is an option that is going to be offered to consumers, the organization needs to realize that as a whole the organization is going to be exposed to new risks, such as, fraud and viruses. Regulatory mechanisms for e-business are not yet in place in many countries. This causes B2B and B2C sites to be based around trust, trust in the organization that has been chosen, either for business or consumer purposes (Chaker, 2005).
In today’s world, the role of service technology in the banking industry is vital; to serve the client’s faster as well as it saves money allowing customers to conduct banking efficiently. Today, through the use of internet, customers can access their bank details on their own computers, smartphones, tablets, transfer money on their own accounts or from one account to another, send money to another country, print or view bank statements and make inquiries about their financial transactions. Technology has changed the way of how banks are delivering services to their customers. Due to the technological advancements, information is available at our fingertips.
Internet insecurity is a sufficient cause of distrust in the medium. A lack of faith in it as a viable marketplace due to this insecurity stems from three reasons. People are skeptical due to the already publicized cases of security breeches. Whether in movies, television, or magazines, many have recently become very aware of the possible danger that they face. Users and non-users may also fear that the Internet could have a "big brother" effect. With the abundance of information on the Internet, some feel that it has too much control, and that users sacrifice their privacy. Finally, the fact that the amount of protection is limited is another problem. One cannot feel confident in a situation if they do not know how to protect themselves. There are ways to keep safe on the Internet, but few are very well known. Some programs have no simple way to protect against at all. If people maintain a feeling of insecurity it is quite possible that the Internet could be lost. As Marshal Jon Fisher, a reporter for The Atlantic Monthly, wrote, " ...if a shopping mall has a reputation as a pickpockets' hangout, it becomes a ghost mall." (Fisher 1)
In recent years, Internet banking, namely, online banking means the transitions of banking activities including checking account information and payment of bills through a website (Chavan ,2013, cited Singhal and Padhmanbhan, 2008; Ahasanul et al, 2009), is popular in the world. According to Abdou (2014), in the UK, the number of online banking users has increased from 63% to 70% between 2011 and 2012. Online banking is beneficial for consumers to monitor their account information (Hettiarachchi, 2014), and saves time to transferring funds (Lichtenstein and Williamson, 2006). However, Littler and Melanthiou (2006) point out that internet banking is not completely safe, and faces
In an electronic commerce environment, trust is difficult relation to build and even more critical for business success than in traditional commerce. The electronic commerce is not an ordinary business environment where we can trust the vendors.
According to Degado and Aleman, (2001, European journal of marketing), brand trust includes brand reliability and brand intention. Bran reliably represents consumer belief that brand will deliver the value it promises, and brand intent refers to the temperament of the brand to put the consumer’s interest as the primary consideration. Growing researches about e commerce has noted the influence of web environment on trust and purchasing decision. This article regards brand affect as positive emotions and effective commitment which associates with brand feeling and concept of emotional bonding. Researchers have conducted various studies in order to understand the dominant factors that best fits with the selection of brand by the consumer and how the e-environment and its features effect the loyalty of customers and brand. Study states that privacy and security are highly correlated (Ha, H. Y., 2004 Factors influencing consumer perception of brand trust online “journal of product and brand management”, )as the consumers have to give their personal information, open online accounts, give their bank details, etc. they are worried that their transactions can be traced by other user and online viruses could affect their transaction. Researchers than framed hypothesis on brand and e- environment to find the relationship between the brand and online portals or website. Outcome was that he brand
In the past, internet banking has been adopted by banks mainly to decrease costs and increases revenue by reducing staff and branch networks. Today, banks are visualizing the internet banking as a strategic enabler of customer services and others view internet banking as the key to expansion. Internet banking has gained acceptance throughout the world as a new delivery channel for performing various banking and financial activities.
This paper studies endogenous diffusion and impact of a cost-saving technological innovation -- Internet Banking. The bank understudy i.e. ICBC has efficiently embarked on its internet based private banking service. The vice director of e-banking felt that the entire project was an accomplishment in terms of its schema and satisfactory quality. Here is this case he needs to expound the understandings and the lessons internalized along the entire course of the project. Moreover, there were various issues which were raised during this intellectual itinerary, which included the challenges regarding computer system implementation, Information system design and most importantly the feasibility analysis. This case deals with the fact that how he confronted the challenges and developed a plan which immensely benefited bank.
Further, the risky nature of online shopping required trust and risk play significant roles in completing online transactions (Pavlou, 2003). Jarvenpaa and Tractinsky (1999) says that trust play positive role towards the success of online transactions. Online trust more needed when customer share financial information and personal data for making a purchase online (Egger, 2006). Teo and Liu (2007) states, Online trust is centered on the perception of the risks or benefits of the online transaction. Number of studies has find that the more customer online trust the higher the number of online purchase intention (Verhagen et al., 2006; McKnightet al., 2002; Lim et al., 2006; Ling et al., 2010). Therefore, we
Business today is inextricably intertwined with technology, from the smallest home office, to a multinational corporation with multiple monolithic legacy application. It is impossible to be in business today without confronting the issues of technology. The way we do business today is different than 30 years ago. Technology has evolved around the areas of telecommunication, travel, stock market, shipping even around our daily lives. E-commerce a system by which people can buy, sell and deal without even seeing the person on the other side has taken a front seat in improving the economy of countries around the world. Technology today has made it possible for monetary institutions to help locate the customers resources and help solve their problems at any given time through online banking. The Internet, a boon to all business, is playing a part of a catalyst; it links millions of customers to its suppliers and vice versa due to this, manufactures are able to cut the role of middlemen and are able to deal with the customers, giving them the ability for direct input from the customers about their choices and views of their product. The busi...
Communication modern technological tools that have been enhanced by Information Technology are having an impact on changing the very structure and communication of banking. That is, clients are enabled to make their banking transactions whenever and wherever they want. Bank clients, by just logging on their online account, can transfer any amount of money from their account to any other account, check their last processed banking transactions and apply for loans and other banking services. According to Keyes ( 2000, p.591) 'electronic checks provide consumers with the benefits of convenience and safety while allowing billers to maintain their existing depository relationships with their banks'. Further, e-mails has enabled bank employees to notify their customers of any new enhanced bankin...
It is true, that Internet Banking is useful for customers as well as for the banks. On the one hand, it helps people have direct and quick access to their bank accounts, on the other hand, helps the banks to save costs. ‘Clearly, in order to conti...
This study will help banks to customize the e-banking services , according to customer need
Stead, B. A., & Gilbert, J. (2001). Ethical issues in electronic commerce. Journal of Business Ethics, 34, 75-85.