Internet Banking Research Articles

A Secure Approach Out-of-Band for e-Bank with Visual Two-Factor Authorization Protocol

The article presents an innovative approach for secure authentication in internet banking transactions, utilizing an Out-of-Band visual two-factor authorization protocol. With the increasing rise of cyber attacks and fraud, new security models are needed that ensure the integrity, authenticity, and confidentiality of financial transactions. The identified gap lies in the inability of traditional authentication methods, such as TANs and tokens, to provide security in untrusted terminals. The proposed solution is the Dynamic Authorization Protocol (DAP), which uses mobile devices to validate transactions through visual codes, such as QR codes. Each transaction is assigned a unique associated code, and the challenge must be responded to within 120 s. The customer initiates the transaction on a computer and independently validates it on their mobile device using an out-of-band channel to prevent attacks such as phishing and man-in-the-middle. The methodology involves implementing a prototype in Java ME for Android devices and a Java application server, creating a practical, low-computational-cost system, accessible for use across different operating systems and devices. The protocol was tested in real-world scenarios, focusing on ensuring transaction integrity and authenticity. The results show a successful implementation at Banco do Brasil, with 3.6 million active users, demonstrating the efficiency of the model over 12 years of use without significant vulnerabilities. The DAP protocol provides a robust and effective solution for securing banking transactions and can be extended to other authentication environments, such as payment terminals and point of sale devices.

Influence of Informational Internet Banking on Performance of Copedu PLC Microfinance

Purpose: This study investigates the influence of informational internet banking on the performance of COPEDU PLC Microfinance in Rwanda. It explores how access to online banking information affects customer satisfaction, retention, and overall financial performance. By focusing on non-transactional digital services, the study evaluates the extent to which informational internet banking impacts transparency, customer engagement, and financial literacy among clients. Methodology: The researcher employed a descriptive case study research design that integrated both qualitative and quantitative approaches. The study population comprised 74 individuals, and therefore, a census sampling technique was employed to select all 74 respondents. The researcher employed the SPSS software application to analyze the data. Mean, standard deviation, and percentages are utilized for data analysis. Pearson correlations were employed to establish the relationships among the variables. Findings: The regression analysis results demonstrated a significant correlation between the predictors (Informational internet banking, Transactional internet banking, and Communicative internet banking) and the dependent variable, Financial Performance, with a R value of 0.720, indicating a high degree of correlation. The R Square value of 0.519 signifies that around 51.9% of the variance in financial performance is elucidated by these predictors. The adjusted R Square of 0.497 provides a more precise estimate by considering the number of predictors in the model. A substantial majority of respondents (57.1%) agree that internet banking provides easy access to account information, reflected in a high mean score of 4.57. Additionally, 68.6% believe that the availability of internet banking services has improved customer satisfaction, with a mean of 4.64. The data suggests that informational internet banking has effectively reduced the need for in-person visits (61.4% agreement, mean 4.50) and has enhanced transparency in financial transactions (55.7% agreement, mean 4.56). Furthermore, respondents acknowledge that internet banking has positively impacted COPEDU's operational efficiency (57.1% agreement, mean 4.53) and improved the speed and convenience of accessing financial information (57.1% agreement, mean 4.49). Lastly, the provision of timely financial updates through internet banking was seen to contribute to better decision-making, with 50% of respondents agreeing (mean 4.44). Overall, the findings underscore the critical role of informational internet banking in enhancing customer satisfaction, operational efficiency, and informed decision-making at COPEDU PLC. In conclusion, the study demonstrates that informational internet banking significantly enhances customer satisfaction and operational efficiency at COPEDU PLC Microfinance, indicating its essential role in modern financial services. Unique Contribution to Theory, Practice and Policy: The research was underpinned by agency theory, contingency theory, behavioral theory, and information theory. It is recommended that COPEDU continues to invest in and promote its digital banking services, ensuring that clients are aware of the benefits and features available to them. For future research, it would be valuable to explore the long-term effects of digital banking on client retention and financial performance, as well as to examine the challenges and barriers faced by customers in utilizing these services effectively.

PENGARUH KUALITAS PELAYANAN TERHADAP MINAT NASABAH DALAM MENGGUNAKAN MOBILE BANKING DAN INTERNET BANKING (Studi Kasus Pada PT. Bank Central Asia Tbk KCU Pangkalpinang Tahun 2024)

This study seeks to examine the impact of customer interest in utilizing mobile banking and internet banking services from four perspectives: service aspects, customer understanding aspects, target accuracy aspects, and timeliness aspects. The case study is conducted at PT. Bank Central Asia Tbk KCU Pangkalpinang in 2024. The study employs a survey method using a questionnaire as the primary data collection tool. The sample includes 100 customers of BCA Bank KCU Pangkalpinang who utilize mobile banking and internet banking services. Data analysis is performed through multiple linear regression to investigate the relationship between the independent variables (service aspects, customer understanding aspects, target accuracy aspects, and timeliness aspects) and the dependent variable (customer interest in using mobile banking and internet banking). The findings of the study reveal that the service aspect has a partial impact on customer interest in using mobile banking and internet banking. Similarly, the customer understanding aspect, target accuracy aspect, and timeliness aspect each partially influence customer interest in these services. When considered together, the service quality variables—comprising the service aspect, customer understanding aspect, target accuracy aspect, and timeliness aspect—have a positive and significant effect on customer interest in using mobile banking and internet banking.

Implementation of Digital Payment in Mitigation of Fraud Risk at Hotel Conrad Bali

This study aims to be a fraud risk mitigation strategy in managing payment transactions. This study is a qualitative study. Data collection by interviews, documentation studies, and observations. Data analysis techniques used in this study are data reduction, data presentation, and drawing conclusions. The results of this study indicate that digital payments in payment transactions at Conrad Bali use internet banking. Conrad Bali conducts a longitudinal risk evaluation to identify fraud and applies a clear separation of duties. Conduct routine audits of security systems and internal controls to ensure employee effectiveness. Authorization is carried out with three security procedures, namely transaction maker (account payable and paymaster), approver/checker (chief accountant, OIBH, director of finance, and general manager) and releaser (general manager and owner).

Cashless policy and socio-economic development in Aba City Nigeria

The study examined impact of cashless policy on socio-economic development in Aba City. Specifically, the study sought to: examine the impact of automated teller machine (ATM) transaction on living condition in Aba City and determine the impact of Point of sales transaction (POS) transaction on employment generation in Aba City. The research design was descriptive survey research design. Study Area was Aba City, Nigeria. The sample size of 400 respondents was drawn from population of 2.534 million (estimated population 2016) indigenes of Aba City. The sample size of 400 respondents was drawn with Taro Yamane sampling technique. Research questions of the study were answered using mean score and standard deviation. The hypotheses stated were tested using regression analysis. The empirical result of the study showed that automated teller machine (ATM) transaction has significant impact on living condition in Aba City (t-statistic = 6.446; P-value (0.000) < Sig-value (0.05) and Point of sales transaction (POS) transaction has significant impact on employment generation in Aba City (t-statistic = 7.238; P-value (0.000) < Sig-value (0.05). The study recommended that monetary authority of Nigeria (Central Bank of Nigeria) should provide public enlighten education and awareness on the benefits of automated teller machine, point of sales, and internet banking as enhancers of cashless policy in Nigeria.

Digital Innovations and Competitive Advantage of Commercial Banks in Kenya

Purpose: The purpose of the study was to ascertain the role of digital banking technological innovations in enhancing competitive advantage among commercial banks in Kenya. Specifically, the study sought to examine the influence of digital technological innovations for market, digital banking innovations for differentiation, digital innovations for customer satisfaction and the influence of ICT infrastructure on competitive advantage of commercial banks in Kenya Methodology: Descriptive research design was adopted for the present study. The study was carried out in Kenya, covering all the 39 solvent commercial banks in Kenya as of 31st March 2024. The study adopted the census data collection method from the headquarters of the 22 solvent commercial banks belonging to Tier 3. Four key officers including the sales manager, loan officer, relationship manager, and risk manager totaling to 88 were sampled to participate in the study. Findings: The findings indicate that there is a significant relationship between market positioning and competitive advantage (B = 0.292, p = 0.003). On the other hand, Differentiation is established to have a negligible influence on competitive advantage in this model (B = 0.027, p = 0.852). Customer Satisfaction comes out strongly, as a factor that defines competitive advantage (Coefficient = 0.247, P = 0.046). Unique Contribution to Theory, Policy and Practice: The study recommends that Kenyan commercial banks invest in continuous digital innovation, particularly in mobile and Internet banking, to strengthen market positioning, improve brand perception, and offer personalized services. Banks should also enhance their ICT frameworks for better service delivery, data protection, and adaptability to market changes. Emphasizing mobile banking innovations and staying updated with emerging digital trends will help banks reduce customer acquisition costs, expand their customer base, and maintain a competitive edge in a dynamic industry.

Factors Affecting the Internet Banking Adoption in Kathmandu Valley

In the rapid evolution of digital technology, the adoption of internet banking has become a crucial component of modern banking services. This paradigm shift towards digitization necessitates understanding the factors influencing internet banking adoption. This study aims to promote extensive adoption of internet banking in the Kathmandu Valley, encouraging financial inclusion and technological advancement in the region. This study examined factors influencing internet banking adoption among SMEs using an explanatory research design and the TAM theory, testing seven hypotheses. Data were gathered from 280 SMEs using a structured questionnaire administered through Kobo Toolbox and analyzed with Partial Least Squares Structural Equation Modeling (PLS-SEM) version 4.0. The results indicate that perceived usefulness, ease of use, and risk significantly impact the intention to use internet banking. Perceived usefulness serves as a mediator between ease of use and subjective norm, influencing their impact on the intention to use. The key challenges identified include system errors, security concerns, trust issues, lack of innovativeness, limited technology access, and awareness gaps. The study suggests the importance of user education, interface simplification, personalization, and enhanced user support to improve secure online transactions.

Cyber Insecurity For Internet Banking

Internet banking has become a crucial aspect of modern financial transactions, enabling customers to access their account information and perform various transactions from anywhere. Ensuring the security of these transactions is one of utmost importance, and this is where authentication protocols come into play. One such protocol is Kerberos, which is widely used for secure authentication in many applications, including internet banking. In this paper we discuss the basic operations and functionalities of Kerberos while pinpointing the advantages of using Kerberos as an authentication protocol in internet banking. We also discuss the security features of using Kerberos, including its use of encrypted tickets and its ability to prevent replay attacks

Reflection of Gender Digital Divide on Digital Financial Inclusion in Context of Indian Bankers: An Empirical Analysis

The study aims to examine the presence of gender difference in Digital Financial Inclusion of Indian bankers reflected through Gender Digital Divide. UTAUT2 model was adopted to examine the Behavioral Intention of bankers to adopt Digital Banking. Structured questionnaires framed on 5-point Likert scale were distributed among 300 bankers, selected through random sampling, and received 260 completed questionnaires. Statistical data analysis was done using PLS-SEM. Findings reveal that five out of the eight UTAUT2 factors (Perceived Usefulness, Social Influence, Hedonic Motivation, Habit, and Price Value) have significant roles for men and three have significant roles for women (Perceived Ease of Use, Personal Innovativeness, and Facilitating Conditions). Research indicates that women are trailing behind in the use of digital banking, which is concerning because their internet banking adoption and usage can motivate other women to use digital media, thereby raising their Financial Inclusion level.

Pengaruh Adopsi Financial Technology Terhadap Profitabilitas Bank Umum Konvensional yang Terdaftar di Otoritas Jasa Keuangan Periode 2017-2022

This research aims to analyse the effect of financial technology (fintech) adoption on the profitability of conventional commercial banks registered with the Financial Services Authority for the period 2017-2022. This research is an associative research with a quantitative approach. The data collection method is a survey sample. The population in the study amounted to 93 banks. By using purposive sampling technique, 5 bank samples were obtained (30 observation data). Fintech services in this study are measured using Automated Teller Machine (ATM), internet banking and mobile banking. While profitability is measured using Return On Asset (ROA). The panel data analysis method in this research is multiple linear regression analysis using Eviews version 12. The results of this research indicate that Automated Teller Machine (ATM) has a positive and insignificant effect on ROA, internet banking has a negative and insignificant effect on ROA and mobile banking has a positive and significant effect on ROA.

THE INTRODUCTION OF INNOVATIVE TECHNOLOGIES IN THE ACTIVITIES OF MODERN BANKS

Currently, traditional creative financial solutions are undergoing significant transformations, giving rise to new services designed for end users. Although the banking sector remains the main advanced segment for new technological solutions in the global financial market, it faces competition from emerging fintech companies. The integration of high-tech solutions enables banks to enhance the competitiveness of their offerings and redefine how these products are developed and distributed. A critical factor in boosting a bank’s competitiveness through innovative products is the rapid development and market introduction of these innovations, as this quick turnaround directly impacts the speed at which competitive advantages are gained. People’s need for banking solutions, namely products or services, directly creates a vector of further development, the very format of these solutions. The most important thing is the bank’s focus on the wishes of its direct customers In this important sector, it is possible to get ahead only thanks to such characteristics as cost optimization, assortment revision and, a specific customer base. Of course, we must take into account international trends, the integration of such new products is the main issue on the agenda. Thus, the introduction of innovative technologies into the work of domestic banks helps to increase their competitiveness. The objective of this study is to develop both theoretical and practical frameworks for assessing the impact of cutting-edge financial technologies on the evolving landscape of the banking system. Keywords: digitalization, Internet banking, mobile banking, banking credit technologies, digital money.

THE FACTORS AFFECTING THE ADOPTION OF A WELL-INTEGRATED INTERNET BANKING SYSTEM IN MAURITIUS

As the result of technological advancements, online banking is becoming a major feature for banks because it helps customers to save time and benefits banks financially. Although Mauritius’s banking sector is well developed, its e-banking sector has lagged behind other countries. Hence, the purpose of this study is to identify the factors affecting the adoption of internet banking. From the findings of the study, it can be seen that many Mauritians nowadays use internet banking, but it is principally the new generation whereas the older banking customers prefer the traditional way as they do not trust the internet to manage their money. Also, though many use e-banking now they still think human contact is important for banking relation and continue to visit their banks, thus proving that even if online banking is in well integrated in Mauritius now, it still has a long way to go for Mauritians to integrate it into their everyday lives and use it to its full potential.

Risks of Using Digital Payment Method Using the Perceived Risk (PR) Theory Approach

Purpose: Most studies focus on the advantages of adopting innovations, such as Internet banking and mobile banking, assuming that new technology should be adopted because it is good enough. However, very few have specifically examined the risks perceived by customers when using DPM, especially mobile banking. Therefore, this study aims to determine the influence of privacy risk, security risk, access risk, personalization risk, and trust risk on the use of digital payments. Design/Methodology/Approach: This study is explanatory. The sampling technique used is purposive sampling where the sample is taken with certain considerations or conditions. The criteria are as follows: 1) the millennial generation aged 18 to 45 years and 2) the selected sample is an active user of DPM such as SMS, internet, and mobile banking. The distribution of questionnaires used purposive convenience sampling to select samples. Convenience sampling is based on the availability of elements and the ease of obtaining them. To test the hypothesis, the Partial Least Square (PLS) technique was used using the smart PLS 3.0 application. Findings: personalization risk and trust risk variables have a significant positive effect on the use of digital payments. At the same time the access risk, security risk, and privacy risk variables do not affect the use of digital payments. Implications/Originality/Value: This study can enrich the literature on Perceived Risk (PR) theory by providing insight into how the risk perceived by users affects the adoption and use of digital payment methods. This can help understand the psychological and emotional factors that influence consumer decisions and open up opportunities to integrate PR Theory with other theories, such as the Technology Acceptance Model (TAM) or the Theory of Planned Behavior (TPB), to get a more comprehensive picture of technology adoption.

IMPACT OF DIGITALISATION ON BANKING SECTOR

The banking sector has been substantially changed by the fast development of digital technology. The effect of digitalisation on general financial services, client contacts, and banking operations is investigated in this article. In banking, digitalisation has brought about the automation of formerly manual procedures, therefore improving client happiness, efficiency, and operating expenses while lowering running costs. Offering 24/7 access to financial services from anywhere in the globe, services such internet banking, smartphone apps, and digital payment systems have transformed the way consumers connect with banks. Furthermore, digitalisation has helped fintech to emerge, therefore undermining established banking structures and encouraging more innovation and competitiveness. Advanced technologies such artificial intelligence (AI), machine learning (ML), and blockchain have been embraced by banks to guarantee better security in transactions, provide tailored services, and help to guide decisions. Although digitalisation has many advantages, it also brings problems like cybersecurity threats, data privacy issues, and the necessity of large technological infrastructure investment. This study also addresses its function in financial inclusion by enabling underprivileged groups to use banking services. Banks have to strike a mix between innovation and regulatory compliance, risk control, and client confidence as the digital revolution unfolds. The results of this research imply that banks must embrace digital transformation if they are to stay competitive in an economy becoming more and more digital and also meet the changing demands of tech-savvy customers.

The Effect of Internet Banking, Product Advantages, and Customer Relationship Management on Customer Loyalty at Bank Syariah Indonesia Semarang City

Introduction: The growing significance of customer loyalty in the competitive landscape of Islamic banking underscores the need for Bank Syariah Indonesia to understand the key factors that influence it, particularly in Semarang City. Objective: This research aims to analyze the effect of Internet banking, product advantages, and customer relationship management on customer loyalty at Bank Syariah Indonesia in Semarang City. Method: A non-probability sampling technique was applied, explicitly utilizing the snowball sampling method, which started with a small initial group of respondents and expanded through referrals. The sample obtained in this research was 100 Bank Syariah Indonesia customers in Semarang City. The data were analyzed using various statistical tests, including validity and reliability checks, classical assumption tests (normality, multicollinearity, heteroscedasticity), and multiple linear regression with Statistical Package for the Social Sciences (SPSS) v.26. Result: The findings show that Internet banking, product advantages, and customer relationship management positively and significantly affect customer loyalty. This study shows that Internet banking, product excellence, and customer relationship management significantly affect customer loyalty at Bank Syariah Indonesia Semarang City. These variables can explain 66.1% of the variance in customer loyalty, while other factors influence the remaining 33.9%. Implication: The impact of this research provides strategic insights for Bank Syariah Indonesia or other banks to understand better and fulfill customer needs, which ultimately can increase customer loyalty and satisfaction in the long term.

On the issue of digitalization of banking services

In this article, we will identify and analyze banking services provided during the use of modern information technologies in remote customer service of the bank. The author highlights the features, issues, and prospects of the digitalization process in Ukraine. Today, dozens of banks offer their clients, both legal entities and individuals, as well as individual entrepreneurs, remote servicing systems and Internet banking, providing full banking services through the «Internet» from anywhere on the globe. Internet banking is a service that allows managing one’s bank account over the internet, offering great convenience and speed, the ability to carry out operations with one’s account, opened in one’s bank, without visiting the bank’s office and forgetting about queues at the cash desks and settlement departments of other organizations. On the other hand, internet banking is a general term for remote servicing technologies, as well as access to accounts and operations (on them), provided at any time from any computer with internet access. The article notes the lack of a unified approach to defining retail banking services, as well as a universally accepted interpretation of the concept of a «banking service.» A definition of a banking service is proposed, namely, a banking service is the result of a set of banking operations aimed at satisfying the client’s needs, bringing certain benefits to the consumer, related to the movement of financial assets or providing financial information. Accordingly, the provision of banking services is the main activity of any bank. In order to make a profit, a banking institution must create a service necessary for the client, determine its price, enter the market with it, implement it, and also ensure proper legal regulation. As a result of the study, conclusions were made that the range of banking services provided to individuals is constantly expanding. This will allow banks in the future to create various types of service packages.

DAMPAK LAYANAN PERBANKAN DIGITAL TERHADAP KINERJA PERBANKAN DI INDONESIA

Advances in digital technology encourage the transition from conventional lifestyles to the digital era, one of which is digital banking services. The use of electronic media in financial products is expected to provide faster, easier, and more appropriate services to customer needs (customer experience), and ensure that customers can make transactions independently by paying attention to security aspects. Banking performance can of course also be influenced by the adoption of these digital banking services. This study aims to determine the effect of digital financial services such as electronic money, ATMs, credit cards, SMS banking and internet banking on banking performance in Indonesia in 2021-2023. Using simple linear regression analysis techniques, it can be seen that credit cards and internet banking can have a significant positive effect on banking performance. A positive relationship is also shown by the SMS banking variable but is not significant. Meanwhile, ATMs and e-money show a negative and insignificant effect on banking performance in Indonesia.

Impact of Digital Evolution on Customer Relationship Strategies in the Banking Sector

Digital evolution in the banking sector refers to the integration and development of digital innovations, such as internet banking, mobile applications, AI, and data analytics in banking operations and customer service measures. The research examines the influence of digital development on customer interaction strategies in the banking sector. As banks increasingly adopt digital tools to meet customer expectations for convenience and personalized services, the dynamics of customer relationships are changing. The study purpose is to understand how digital transformation influences customer engagement, satisfaction, loyalty and challenges banks face in maintaining personalized interactions in a digital environment. The study looks into a number of factors, including digital engagement, customer satisfaction, service personalization, customer loyalty, service accessibility, trust and security. The study involves 600 banking customers filling out a questionnaire after being informed about the purpose of the survey. SPSS was employed to conduct various statistics tests such as, pearson correlation, chi square, and t-test the obtain data and variables. The result indicates a positive correlation between the adoption of digital banking solutions and increased customer engagement. Research results underscore the importance of continued investment in a digital technologies to maintain a competitive edge in the banking industry. Banks that effectively integrate digital tools into their customer relationship management practices are better positioned to evolving requirement of customers, leading to improved satisfaction and loyalty.

Impact of bank financial technology on the performance of banks in the European Union

This article examines how financial technology determines bank performance in different EU countries. The answer to that question would allow banks to choose their development policy. The paper focuses on the main and most popular bank services that are linked to financial technology. A SWOT analysis of FinTech is also presented to show the benefits and drawbacks of FinTech. FinTech-based services are very diverse and are provided by financial firms and banks alike. This paper looks at the financial technology provided by banks: internet usage (internet banking), number of ATMs, credit transfers in a country, percentage of the population in a country holding a debit or credit card and whether that population has received or made a digital payment. Using the multi-criteria assessment methods of CRITIC and EDAS, the authors analysed and compared the countries of the European Union and the financial technology used in them. As a result of the application of these methods, the EU countries under consideration were ranked in terms of the use of financial technology. Subsequently, three banks from different countries with different levels of the use of financial technology were selected for the study. For these banks, financial ratios of profitability were calculated to characterise their performance. Correlation and pairwise regression analyses between the banks’ profitability ratios and financial technology were used to assess the relationship and influence between these ratios. The main conclusion of the study focuses on the extent to which financial technology influences the performance of banks in the selected countries. It is likely that further research will try to take into account the size of the country’s population when analysing all financial technologies. Researchers also needed to find out what influence financial technologies have on the such financial indicators as operational efficiency (costs), financial stability, and capital adequacy.

Digital finance policy and the challenge of air pollution in China

This study investigates the influence of digital finance tools on air quality in China from 1990 to 2020 using the cross-sectional augmented autoregressive distributed lag approach. The findings underscore the critical role of digital finance, especially internet banking, in reducing air pollution levels. The increased adoption of internet banking is linked to lower vehicular emissions and more efficient financial operations, aiding environmental preservation. Similarly, ATM banking is found to negatively correlate with air pollution, though to a lesser extent. In contrast, coal consumption, urban population growth, and inflation are positively associated with air pollution, highlighting the necessity for sustainable urban planning and energy transition policies. To combat air pollution, it is essential to utilize digital finance tools, broaden digitalization across various sectors, and employ AI and big data for precise interventions. Supporting green financial tools can help fund renewable energy projects, speeding up China’s shift to a low-carbon economy and mitigating the harmful effects of air pollution.