Online Banking: The Pros And Cons Of Electronic Banking

Introduction

The advancement of technology especially the internet has changed the way how organizations conduct their business. Nowadays, the revolution of internet been more apparent than in the banking and financial services industry. Previously, the only way to conduct banking transactions is thru traditional banks which is in the form of brick-and-mortar services. However, with the evolution of internet, customers could conduct a wide range of banking services electronically, anytime and at anywhere by just using online banking or electronic banking. Electronic banking also known as internet banking is defined as the automated delivery of new and traditional banking products and services directly to customers through electronic, interactive

One of the advantages is perceived usefulness and perceived ease of use of the electronic banking services has proven to have significant impact on intention to use internet banking. Perceived ease of use is defined as the degree to which a person believes that using particular system would be free from effort (Davis, 1989). Likewise, Mathieson (1991), perceived that ease of use as the consumer’s perception that online banking involves minimum effort. Individuals that perceived internet banking as easy to use, feel that they need less effort to operate the system and will use the service.

Conclusion

In conclusion, there is pros and cons for the adoption of electronic banking. Convenience and ease to use are the main reason for the adoption of internet banking, meanwhile the security and privacy appear to be the top main concerns for the adoption of electronic banking. Studies also reveal that privacy, security and convenience factors play an important role in determining the users’ acceptance of electronic banking services with respect to different segmentation of age group, education level and income