Professional Documents
Culture Documents
INTRODUCTION
Background
1
etc are all included in the banking sector (“Editorial
Staff”, 2005).
The State National Bank of the Big Spring, Texas was the
first ever bank in the world to launch the internet banking
services. Therefore, the pioneer of internet banking is the
United States of America (Keyes, 2000).
By the end of the year 1998, banks all around the world
were offering more than 200 different kinds of internet
banking services. By the year 2000, the number of internet
banking services jumped to 819 (Bidgoli, 2004).
2
In Pakistan, the transformation from manual banking to the
Internet banking took place in the year 2002 when the
governor of the State Bank of Pakistan instructed all the
banks of Pakistan to introduce and operate by the means
Internet Banking. In the same year, Habib Bank Limited in
Pakistan also launched its electronic banking services
(“Daily Times”, 2002).
3
User acceptance with regard to the technology is related
with the positive willingness of a user for the activities
designed for the technology (Dillon & Morris 1996).
Problem Identification
4
because they are the ones ultimately operating these
systems. There is a need to identify the consumers'
response towards the internet banking usage in terms of its
interface offerings to its consumers, so that the overall
layout becomes more satisfactory from the perceptions and
beliefs of the consumers
Problem Statement
Research Question
5
Rationale Of the Study
One field that has been growing all over the world is
information technology. It is covering all the areas of
life, which makes its usage important. It holds a core
position in the banking sector as well. The banking sector
has started to increase the implementation of the
information technology systems, which has lead to the
growth of internet banking. Its prompt transaction
attributes, speedy delivery of the transactions, and its
availability provides substantial convenience to its users.
6
Scope of the study
7
CHAPTER TWO
LITERATURE REVIEW
During the years 2003 to 2007, Internet banking has grown
with an average rate of fifteen percent. However, according
to several experts, this growth in the future can decline
and can come from double figures for the single figure
growth. For this, they have urged the banks to come up with
customer attractive offerings online (“Community Banker”,
2007).
8
percent of the current Internet banking consumers will do
operations through their cell phones (Horton, 2007).
9
However, along with the growth of the Internet Banking
there are certain risks, which do exist. One of the biggest
one is the vulnerability of the online banks to expose
consumers' records to the third party. During the year 2007
only, about one hundred and fifty records of online banking
consumers were exposed to the strangers. Those strangers
were identified as crooks and hackers (Horton, 2007).
10
financial positions, and it will help them to achieve their
financial goals more efficiently (“Community Banker”. 2008).
11
The findings also concluded that, the online financial
institutions should also on their web interface at least
three distinct features. Their findings confirmed this
also, as those consumers who were using three or more
popular features online, were more likely to be more
engaged with that bank (Scorborough, 2008).
12
CHAPTER THREE
METHOD
Sample
Data was extracted from both the primary sources and the
secondary sources. For secondary data sources, the
variables regarding online banking usefulness,
personalization, effectiveness, alliance services,
accessibility, convenience and attitude were analyzed
through the previously published research papers placed on
EBSCO, SPRINGER LINK, Online electronic books and Blackwell
Synergy.
13
The initial questionnaires contained demographic variables
such as age and gender. The second part of the
questionnaire contained twenty-three items regarding the
factors of consumers' acceptance of online banking such as
the amount of information, perceived usefulness, perceived
ease of use, perceived enjoyment and security and privacy.
Procedure
14
CHAPTER FOUR
RESULTS AND DISCUSSION
Table 4.1
Cumulative
Frequency Percent Valid Percent Percent
Female 88 25.1 25.1 25.1
Male 262 74.9 74.9 100.0
Total 350 100.0 100.0
Female
Male
Figure 4.1
15
Table 4.2
Figure 4.2
16
Table 4.3
Cumulative
Frequency Percent Valid Percent Percent
Strongly Agree 69 19.7 19.7 19.7
Agree 24 6.9 6.9 26.6
Neither Agree/Nor Disagree 30 8.6 8.6 35.1
Disagree 166 47.4 47.4 82.6
Strongly Disagree 61 17.4 17.4 100.0
Total 350 100.0 100.0
Strongly Agree
Agree
Niether Agree/Nor
Disagree
Disagree
Strongly Disagree
Figure 4.3
17
Table 4.4
Frequency Distribution of the respondents with respect to online users having enough
information regarding benefits of using online banking (n=350).
Cumulative
Frequency Percent Valid Percent Percent
Strongly Agree 43 12.3 12.3 12.3
Agree 66 18.9 18.9 31.1
Neither Agree/Nor Disagree 12 3.4 3.4 34.6
Disagree 127 36.3 36.3 70.9
Strongly Disagree 102 29.1 29.1 100.0
Total 350 100.0 100.0
`
Frequency Distributionof the Respondents withrespect to online users
havingenoughinformationregarding benefits of usingonline banking
(n=350).
Strongly Agree
Agree
Niether Agree/Nor
Disagree
Disagree
Strongly Disagree
Figure 4.4
Frequency Distribution of the respondents with respect to online banking enabling the
online users to utilize banking services more quickly (n=350).
Cumulative
Frequency Percent Valid Percent Percent
Strongly Agree 75 21.4 21.4 21.4
Agree 145 41.4 41.4 62.9
Neither Agree/Nor Disagree 22 6.3 6.3 69.1
Disagree 34 9.7 9.7 78.9
Strongly Disagree 74 21.1 21.1 100.0
Total 350 100.0 100.0
Strongly Agree
Agree
Niether Agree/Nor
Disagree
Disagree
Strongly Disagree
Figure 4.5
19
Table 4.6
Cumulative
Frequency Percent Valid Percent Percent
Strongly Agree 128 36.6 36.6 36.6
Agree 116 33.1 33.1 69.7
Neither Agree/Nor Disagree 40 11.4 11.4 81.1
Disagree 10 2.9 2.9 84.0
Strongly Disagree 56 16.0 16.0 100.0
Total 350 100.0 100.0
Strongly Agree
Agree
Niether Agree/Nor
Disagree
Disagree
Strongly Disagree
Figure 4.6
20
Table 4.7
Cumulative
Frequency Percent Valid Percent Percent
Strongly Agree 104 29.7 29.7 29.7
Agree 53 15.1 15.1 44.9
Neither Agree/Nor Disagree 46 13.1 13.1 58.0
Disagree 100 28.6 28.6 86.6
Strongly Disagree 47 13.4 13.4 100.0
Total 350 100.0 100.0
Strongly Agree
Agree
Niether Agree/Nor
Disagree
Disagree
Strongly Disagree
Figure 4.7
21
Table 4.8
Cumulative
Frequency Percent Valid Percent Percent
Strongly Agree 32 9.1 9.1 9.1
Agree 50 14.3 14.3 23.4
Neither Agree/Nor Disagree 18 5.1 5.1 28.6
Disagree 92 26.3 26.3 54.9
Strongly Disagree 158 45.1 45.1 100.0
Total 350 100.0 100.0
Strongly Agree
Agree
Niether Agree/Nor
Disagree
Disagree
Strongly Disagree
Figure 4.8
22
Table 4.9
Frequency Distribution of the respondents with respect to online banking users finding
it easy to learn new features (n=350).
Cumulative
Frequency Percent Valid Percent Percent
Strongly Agree 41 11.7 11.7 11.7
Agree 37 10.6 10.6 22.3
Neither Agree/Nor Disagree 53 15.1 15.1 37.4
Disagree 154 44.0 44.0 81.4
Strongly Disagree 65 18.6 18.6 100.0
Total 350 100.0 100.0
Strongly Agree
Agree
Niether Agree/Nor
Disagree
Disagree
Strongly Disagree
Figure 4.9
23
Table 4.10
Frequency Distribution of the respondents with respect to online banking users finding
it easy to do things, which they want in online banking operations (n=350).
Cumulative
Frequency Percent Valid Percent Percent
Strongly Agree 41 11.7 11.7 11.7
Agree 24 6.9 6.9 18.6
Neither Agree/Nor Disagree 37 10.6 10.6 29.1
Disagree 109 31.1 31.1 60.3
Strongly Disagree 139 39.7 39.7 100.0
Total 350 100.0 100.0
Figure 4.10
24
Table 4.11
Cumulative
Frequency Percent Valid Percent Percent
Strongly Agree 46 13.1 13.1 13.1
Agree 47 13.4 13.4 26.6
Neither Agree/Nor Disagree 46 13.1 13.1 39.7
Disagree 134 38.3 38.3 78.0
Strongly Disagree 77 22.0 22.0 100.0
Total 350 100.0 100.0
Strongly Agree
Agree
Niether Agree/Nor
Disagree
Disagree
Strongly Disagree
Figure 4.11
25
Table 4.12
Frequency Distribution of the respondents with respect to online banking users, finding
online banking as flexible to interaction (n=350).
Cumulative
Frequency Percent Valid Percent Percent
Strongly Agree 32 9.1 9.1 9.1
Agree 62 17.7 17.7 26.9
Neither Agree/Nor Disagree 37 10.6 10.6 37.4
Disagree 147 42.0 42.0 79.4
Strongly Disagree 72 20.6 20.6 100.0
Total 350 100.0 100.0
Strongly Agree
Agree
Niether Agree/Nor
Disagree
Disagree
Strongly Disagree
Figure 4.12
26
Table 4.13
Frequency Distribution of the respondents with respect to ease for online banking users
to become skillful for using online banking (n=350).
Cumulative
Frequency Percent Valid Percent Percent
Strongly Agree 27 7.7 7.7 7.7
Agree 57 16.3 16.3 24.0
Neither Agree/Nor Disagree 8 2.3 2.3 26.3
Disagree 119 34.0 34.0 60.3
Strongly Disagree 139 39.7 39.7 100.0
Total 350 100.0 100.0
Strongly Agree
Agree
Niether Agree/Nor
Disagree
Disagree
Strongly Disagree
Figure 4.13
27
Table 4.14
Frequency Distribution of the respondents with respect to ease of using online banking
(n=350).
Cumulative
Frequency Percent Valid Percent Percent
Strongly Agree 47 13.4 13.4 13.4
Agree 32 9.1 9.1 22.6
Niether Agree/Nor Disagree 36 10.3 10.3 32.9
Disagree 157 44.9 44.9 77.7
Strongly Disagree 78 22.3 22.3 100.0
Total 350 100.0 100.0
Strongly Agree
Agree
Niether Agree/Nor
Disagree
Disagree
Strongly Disagree
Figure 4.14
28
Table 4.15
Frequency Distribution of the respondents with respect to online users taking online
banking as fun (n=350)
Cumulative
Frequency Percent Valid Percent Percent
Strongly Agree 147 42.0 42.0 42.0
Agree 132 37.7 37.7 79.7
Neither Agree/Nor Disagree 12 3.4 3.4 83.1
Disagree 47 13.4 13.4 96.6
Strongly Disagree 12 3.4 3.4 100.0
Total 350 100.0 100.0
Strongly Agree
Agree
Niether Agree/Nor
Disagree
Disagree
Strongly Disagree
Figure 4.15
29
Table 4.16
Frequency Distribution of the respondents with respect to online users taking online
banking as pleasant (n=350).
Cumulative
Frequency Percent Valid Percent Percent
Strongly Agree 33 9.4 9.4 9.4
Agree 68 19.4 19.4 28.9
Neither Agree/Nor Disagree 15 4.3 4.3 33.1
Disagree 153 43.7 43.7 76.9
Strongly Disagree 81 23.1 23.1 100.0
Total 350 100.0 100.0
Strongly Agree
Agree
Niether Agree/Nor
Disagree
Disagree
Strongly Disagree
Figure 4.16
30
Table 4.17
Frequency Distribution of the respondents with respect to online banking users taking
online banking as a positive move (n=350).
Cumulative
Frequency Percent Valid Percent Percent
Strongly Agree 124 35.4 35.4 35.4
Agree 109 31.1 31.1 66.6
Neither Agree/Nor Disagree 22 6.3 6.3 72.9
Disagree 51 14.6 14.6 87.4
Strongly Disagree 44 12.6 12.6 100.0
Total 350 100.0 100.0
Strongly Agree
Agree
Niether Agree/Nor
Disagree
Disagree
Strongly Disagree
Figure 4.17
31
Table 4.18
Cumulative
Frequency Percent Valid Percent Percent
Strongly Agree 132 37.7 37.7 37.7
Agree 90 25.7 25.7 63.4
Neither Agree/Nor Disagree 19 5.4 5.4 68.9
Disagree 62 17.7 17.7 86.6
Strongly Disagree 47 13.4 13.4 100.0
Total 350 100.0 100.0
Strongly Agree
Agree
Niether Agree/Nor
Disagree
Disagree
Strongly Disagree
Figure 4.18
32
Table 4.19
Cumulative
Frequency Percent Valid Percent Percent
Strongly Agree 49 14.0 14.0 14.0
Agree 124 35.4 35.4 49.4
Neither Agree/Nor Disagree 52 14.9 14.9 64.3
Disagree 62 17.7 17.7 82.0
Strongly Disagree 63 18.0 18.0 100.0
Total 350 100.0 100.0
Strongly Agree
Agree
Niether Agree/Nor
Disagree
Disagree
Strongly Disagree
Figure 4.19
33
Table 4.20
Cumulative
Frequency Percent Valid Percent Percent
Strongly Agree 69 19.7 19.7 19.7
Agree 24 6.9 6.9 26.6
Neither Agree/Nor Disagree 31 8.9 8.9 35.4
Disagree 163 46.6 46.6 82.0
Strongly Disagree 63 18.0 18.0 100.0
Total 350 100.0 100.0
Strongly Agree
Agree
Niether Agree/Nor
Disagree
Disagree
Strongly Disagree
Figure 4.20
34
Table 4.21
Frequency Distribution of the respondents with respect to the trust of the online users
regarding privacy protection (n=350).
Cumulative
Frequency Percent Valid Percent Percent
Strongly Agree 120 34.3 34.3 34.3
Agree 116 33.1 33.1 67.4
Neither Agree/Nor Disagree 30 8.6 8.6 76.0
Disagree 50 14.3 14.3 90.3
Strongly Disagree 34 9.7 9.7 100.0
Total 350 100.0 100.0
Strongly Agree
Agree
Niether Agree/Nor
Disagree
Disagree
Strongly Disagree
Figure 4.21
35
Table 4.22
Cumulative
Frequency Percent Valid Percent Percent
Strongly Agree 73 20.9 20.9 20.9
Agree 34 9.7 9.7 30.6
Neither Agree/Nor Disagree 24 6.9 6.9 37.4
Disagree 92 26.3 26.3 63.7
Strongly Disagree 127 36.3 36.3 100.0
Total 350 100.0 100.0
Strongly Agree
Agree
Niether Agree/Nor
Disagree
Disagree
Strongly Disagree
Figure 4.22
36
Table 4.23
Cumulative
Frequency Percent Valid Percent Percent
Strongly Agree 33 9.4 9.4 9.4
Agree 65 18.6 18.6 28.0
Neither Agree/Nor Disagree 15 4.3 4.3 32.3
Disagree 156 44.6 44.6 76.9
Strongly Disagree 81 23.1 23.1 100.0
Total 350 100.0 100.0
Strongly Agree
Agree
Niether Agree/Nor
Disagree
Disagree
Strongly Disagree
Figure 4.23
37
Table 4.24
Frequency Distribution of the respondents with respect to online banking users not
worried about the security at online banking (n=350).
Cumulative
Frequency Percent Valid Percent Percent
Strongly Agree 43 12.3 12.3 12.3
Agree 24 6.9 6.9 19.1
Neither Agree/Nor Disagree 77 22.0 22.0 41.1
Disagree 122 34.9 34.9 76.0
Strongly Disagree 84 24.0 24.0 100.0
Total 350 100.0 100.0
Strongly Agree
Agree
Niether Agree/Nor
Disagree
Disagree
Strongly Disagree
Figure 4.24
38
Table 4.25
Frequency Distribution of the respondents with respect to online banking users not
influenced security not influencing online banking usage (n=350).
Cumulative
Frequency Percent Valid Percent Percent
Strongly Agree 80 22.9 22.9 22.9
Agree 97 27.7 27.7 50.6
Neither Agree/Nor Disagree 34 9.7 9.7 60.3
Disagree 80 22.9 22.9 83.1
Strongly Disagree 59 16.9 16.9 100.0
Total 350 100.0 100.0
Strongly Agree
Agree
Niether Agree/Nor
Disagree
Disagree
Strongly Disagree
Figure 4.25
39
CHAPTER FIVE
CONCLUSION AND RECOMMENDATIONS
Conclusion
40
Majority of the respondents also have an opinion that the
online banking is a great fun as it is pleasant, positive,
exciting and wise. These responses show that the online
users value online banking features and attributes as well.
Surely by all means the consumers are giving this response
in a comparative way, by comparing the offline banking and
the online banking.
Recommendations
41
The online banking interface should be
straightforward, simple and user-friendly. The best
way to come up with such kind of an interaction is to
regularly take a feedback from the online banking
users, regarding interface and based upon that
feedback the changes must be made.
42
Appendix A
References
43
Cronin, M.J. (1998) Foundations for the Electronic
Commerce, Banking and Finance on the Internet.
New York: John Willey and Sons Publications.
44
Hershberger, T. (2009). 30 Guerrilla Marketing Tactics that
work. Bank Marketing, 41(3), 18-25.
45
Quarterly Bulletin. (2000), Authorization of virtual banks,
Guidelines on authorization of virtual Banks.
New York: Annex Publications.
46
Appendix B
Questionnaires
47
STRONGLY NEITHER STRONGLY
AGREE DISAGREE
AGREE AGREE/DISAGREE DISAGREE
48
14.Using online banking is pleasant.
STRONGLY NEITHER STRONGLY
AGREE DISAGREE
AGREE AGREE/DISAGREE DISAGREE
49
22.I am not worried about the security of online banking.
STRONGLY NEITHER STRONGLY
AGREE DISAGREE
AGREE AGREE/DISAGREE DISAGREE
50