The world is changing at a
staggering rate and technology is considered to be the key driver for these
changes around us (Papers4you.com, 2006). An analysis of technology and its
uses show that it has permeated in almost every aspect of our life. According
to Tero et al (2004) many activities are handled electronically due the
acceptance of information technology at home as well as at workplace. Internet
can be seen as a truly global phenomenon that has made time and distance
irrelevant to many transactions. According to Heikki et al. (2002), the
transformation from the traditional banking towards e-banking has been a ‘leap’
change.
The evolution of electronic
banking started from the use of automatic teller machines (ATM) and has passed
through telephone banking, direct bill payment, electronic fund transfer and
the revolutionary online banking (Alter, 2002). The future of electronic
banking according to some is the acceptance of WAP enabled banking and
interactive-TV banking (Petrus & Nelson, 2006). But it has been forecasted
that among all the categories, online banking is the future of electronic
financial transactions. The rise in the e-commerce and the use of internet in
its facilitation along with the enhanced online security of transactions and
sensitive information has been the core reasons for the penetration of online
banking in everyday life (Papers4you.com, 2006). According to the latest
official figures from the Office of National Statistics (ONS, 2006) indicate
that subscriptions to the internet has grown more than 50% from 15 million in
2000 to 35 million in 2005 in the UK. It has also been estimated that 60% of
the population in the UK use internet in their daily lives.
The fundamental shift towards the
involvement of the customer in the financial service provision with the help of
technology especially internet has helped in reduce costs of financial
institutions as well as helped client to use the service at anytime and from
virtually anywhere with access to an internet connection. According to
theorists (Walfried et al., 2005) customer evaluation of the electronic
services is influenced by attributions of success and failure in inter personal
service situations. The use of electronic banking has removed the banking
personnel that facilitate the transactions and has placed additional
responsibilities on the customers to transact with the service. Although the
use of E-banking is provided for the benefit of the customers but these changes
require increased work or involvement on the part of customers. These and other
factors might be seen as lesser service provided in terms of customer service.
But these assumptions would be wrong if the customer knows the value of using
the electronic service.
Thus it can be concluded that a
fit between task i.e. the banking; technology i.e. the user interface and its
reliability; and individuals i.e. the customers and their knowledge about using
the service, is the key to successful E-banking services (Zigurs &
Buckland, 1998).
References:
Alter, S. (2002), “Information
Systems” 4th Edition, Prentice Hall
Heikki Karjaluoto, Minna Mattila,
Tapio Pento (2002), “Factors underlying attitude formation towards online
banking in Finland”, International Journal of Bank Marketing; Volume: 20 Issue: 6; 2002 Research paper
ONS (2005), “Office of National
Statistics”, www.statistics.gov.uk
Papers For You (2006)
"P/F/174. Dissertation. Adoption of Online Banking", Available from
Papers4you.com [18/06/2006]
Papers For You (2006)
"P/F/174. Dissertation. Adoption of Online Banking", Available from
<a
href="http://www.coursework4you.co.uk/sprtfina35.htm">Papers4you.com</a>
[18/06/2006]
Petrus Guriting, Nelson Oly
Ndubisi (2006), “Borneo online banking: evaluating customer perceptions and
behavioural intention”, Management Research News; Volume: 29 Issue: 1/2; 2006 Conceptual Paper
Tero Pikkarainen, Kari
Pikkarainen, Heikki Karjaluoto, Seppo Pahnila (2004), “Consumer acceptance of
online banking: an extension of the technology acceptance model”, Internet
Research; Volume: 14 Issue: 3; 2004
Research paper
Walfried M. Lassar, Chris
Manolis, Sharon S. Lassar (2005), “The relationship between consumer
innovativeness, personal characteristics, and online banking adoption”,
International Journal of Bank Marketing; Volume: 23 Issue: 2; 2005 Research paper
Zigurs, I. & Buckland, B.
(1998), “A Theory of Task/Technology Fit and Group Support Systems
Effectiveness”, MIS Quarterly, Sep98, Vol. 22 Issue 3, p313-334Free Reprint
Articles, 22p
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