17-12-2012, 12:07 PM
ANALYSIS OF FACTOR EFFECTING THE ADOPTION OF E-BANKING SERVICES
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Abstract
This study firstly examines the current literature concerning the electronic banking problems during implementation of electronic problems and causes that hinders this process. The data was collected via interviews, surveys and bank website. Both qualitative and quantitative research approach has been used to investigate and have proper understanding of current e-banking issues. We have sent questionnaire to bank employees and interviews were conducted by the bank mangers. The response of interviews and surveys shows that there are certain issues that hinder the use of e-banking. In-spite of the fact that people are still using the old manual system to do the banking transaction, popularity of cash system, waiting in long queues for hours and lacking of proper computer education and trust etc are the major problems that are hurdles in electronic banking. On the other side there are a lot of reasons that the banks did not concentrate on internet banking and cash flow is still popular in banks and internet banking was used by the banks for the limited services. Last years a lot of changes has been done and a greater understanding have been developed and now banks are offering various online banking services but banks are facing the problem of customer awareness regarding security and privacy of using Internet banking services as still customers are reluctant to use the online banking services so they prefer to come to banks and deposit the money by hand. So we have investigated these hindrance in our research and also we put some light on what are the advantages in using electronic banking and the how the customers are getting benefit by using e-banking . We have developed our own model based upon the prior research. The results were presented in detail based upon the interview and Questionnaire and later on we have given recommendations so that e-banking concept can be implemented and suggestions which can be very helpful for the future research.
Keywords: e-banking, electronic banking, internet banking,
Electronic Commerce
The term Electronic commerce refers to process of performing various business activities for products and services in which two parties interact with each other by electronic means, instead of interacting or having physical contact . Electronic commerce has the following major type’s
1) Business-to-business (B2B).
2) Business-to-consumer (B2C).
3) Business-to-government (B2G).
4) Consumer-to-consumer (C2C).
So technology can consider as the major force to ensure the growth of e-commerce. This helps in providing more efficient, faster and much easier way of communication. Having online access anywhere is one of the main advantages of electronic commerce. The banking sector can be considered as the ideal platform for successful implementation of electronic commerce. According to internet banking is the form of representing electronic channel for distributing and delivering the financial services at the virtual level. Electronic Commerce plays a vital role to boost the economy of the country and there is a high level of risk involved in this industry.
Operational Problems
According to researchers, 3,424 online branches are providing real-time online banking facility to the financial credit holders as compared to 7,406 branches of 41 banks which means that only 42.47% branches are working online. However this process is very slow due to several factors. People having their account in the banks don’t know what is ATM. 8% are aware of online banking facility while 92% are not familiar. Only 12% customers were familiar to use the debit and credit cards facility while 88% customers were not aware of debit and credit cards. Internet users are increasing day by day which reached 12 million in 2007 from 0.01 million in 1997-98 with 2389 cities connected to internet (India Telecommunication Authority, 2007). Personal computer access is very important for online banking. Personal computer penetration and electronic business is directly linked to each other . It is the most important reflection for developing countries like India. A normal personal computer may cost Rs/-30’000 which is the average salary of two months for the typical internet customer .
However there are several other issues like inadequate infrastructure, Software and Hardware, communication infrastructure which are the major obstacles for electronic business which will take years for the normal person to take advantage from online banking . Most of the people are connected through telephone lines which is another aspect of infrastructures because broadband connections are very expansive and an average person cannot afford it.
Objective of the Study
To provide convenient and valuable source to deal with funding because it provides convenience to access account 24/7.
For business consumer electronic banking is providing refined money management with the help of electronic banking which gives all the information within seconds .
To provide electronic banking solutions to the customers.
Digital certificates accessibility and security concerns are impediment for the start of projects and interfering of the political parties in important plans of the bank to make decisions.
To boost the economy of the country and there is a high level of risk involved in this industry. “In many industries such as banking and telecommunications, it is virtually impossible for an organization”.
To compete unless its customers are given the level of service that is only possible with high technology systems.
To Aware, give information, customer protection, response time, reliability, security, technology readiness all are considered to be an important elements for electronic banking.
Electronic banking
In India the introduction of the ATMs and credit card was done by foreign banks and in mid 1990s ATMs and credit card were introduced, then followed by the domestic banks in late 1990s. According to electronic banking is defined as -“Any use of information and communication technology and electronic means by a bank to conduct transactions and have interaction with the stakeholders”.
Electronic banking provides the facility to the customers to access their accounts and execute transactions electronically in a very easier way by visiting the bank websites at any time i.e. 24 hours a day, 7 days a week.
By using this facility individual and companies are saving a lot of their time and money. Some banks are providing this facility free of cost while some banks have lower the costs for online transactions as compared to real life banking transaction.
All the banking power is provided into the hands of customers and allow to self service them by fulfilling the different banking needs, so with the online services customers can facilitate themselves by a number of ways: like they can view their account details, re-viewing of their account histories, payment and transfer funds, order and re-order cheques ,pay utility bills, get loans by filling the loan application form online, activate or replacement of credit card and get in touch with the customer care department of the banks. In order to start the virtual banking, the customers need to have the computer or embedded device like Personal digital assistant (PDA), mobile phone connected with the internet.