Internet Banking Research Articles

Driving Digital Transformation: Analyzing the Impact of Internet Banking on Profitability in the Saudi Arabian Banking Sector

This study examines the impact of Internet Banking on banking profitability in Saudi Arabia in a sample of conventional and Islamic banks. The study uses Return on Assets (ROA) and Return on Equity (ROE) as key metrics to measure profitability in a sample of 10 Saudi conventional and Islamic banks observed over the 2013–2022 period. The used regression analysis reveals a significant effect of Internet Banking on the profitability of both conventional and Islamic banks, as indicated by the ROA and ROE metrics. These findings have implications that underscore the strategic importance of adopting Internet Banking, emphasizing its substantial contribution to the financial performance of both conventional and Islamic banks in the Saudi Arabian banking landscape. This study offers critical insights into the strategic significance of Internet Banking for Saudi Arabian banks’ profitability and future planning, in line with the 2030 Vision goals. This research also supports informed decision making in the digital era, emphasizing the pivotal role of Internet Banking in shaping the future of the Saudi Arabian banking industry.

The Impact of Internet Banking on Bank Fraud in Nigeria

This study investigated the effect of internet banking on bank fraud in Nigeria. Monthly data covering from January 2008 to January 2019 representing 97 observations were utilized. The Auto Regressive Distributed Lag (ARDL) technique was used as the technique of data analysis. The independent variable is internet banking while the dependent variable is bank fraud. The control variables included measures of regulatory quality, bank development and capital market development which have strong correlation with the level of bank fraud in a financial system. Identity theft theory & software vulnerability theory were the theoretical underpinnings in this work. The findings of the study reveal overwhelming evidence of a positive interaction between internet banking and bank fraud in Nigeria which could be attributed to the regulatory quality of the Nigerian banking industry. Internet based transactions had a positive and significant effect on bank fraud in Nigeria Some of the recommendations emanating from the findings of the study are; mainstreaming regulatory sandbox, promoting favorable macroeconomic environment, strengthen AML/CFT regime, strict adherence to fraud disruption measure, biometric authentication, harmonization of industry standards, consumer education awareness.

The Role of Financial Institution Facilities in Ensuring Customer Contentment in Commercial Banking Institutions in Bamenda-Cameroon

Banks across the globe have been experiencing fast changes in recent years. The banking industry in particular has benefited greatly from the expansion of information technology which has allowed for numerous delivery routes for online consumers and the rapid resolution of concerns. This study seeks to find out the role of financial institution facilities in ensuring customer contentment in commercial banking institutions in Bamenda-Cameroon. A questionnaire was used in the study and it was administered to bank employees, government employees and some business owners. Simple random sampling technique was employed as a sample technique and simple linear regression analysis was used to analyze the data. The population size for this study was 700 and a total of 280 questionnaires were distributed but 254 questionnaires were returned resulting to a sample size of 254. The findings of this study revealed that frequent use of ATM cards has a significant positive effect on consumer contentment, financial institution facilities also has a positive effect on the consumer contentment and internet banking has a significant negative effect on consumer contentment. Digitalization of banking activities also helps to reduce fraud because information cannot be altered. The study recommends that financial institution facilities should involve uploading of documents for account opening and loan request. Consumer contentment is priority to achieving banking goals based on the quality of services provided by banks to meet the needs of customers. It is recommended that banks should improve on the quality of digitalized services in order to increase the customer base of the bank.

Exploring the effects of E-Banking Products and Services on Conventional Banking Transactions in Nepalese Commercial Banks

This research investigates the growing scenery of E-Banking Products and Services within Nepalese Commercial Banks and their impact on conventional banking transactions. In the context of global financial sector transformations driven by technology, this study seeks to provide insights into the specific implications for Nepal's banking industry.
 To achieve this, the research employs a comprehensive framework, analyzing the range of E-Banking Products and Services currently offered by Nepalese Commercial Banks. It describes e-banking as the ATM banking, Internet banking and Mobile banking and their impacts on conventional banking transactions within Nepalese Commercial Banks. A mixed-methods approach is applied for this research to understand how E-Banking products and services affect conventional banking transactions in Nepalese Commercial Banks.
 Ultimately, the objective of the research is to offer valuable insights into the complex interplay between E-Banking and conventional banking transactions in Nepalese Commercial Banks. By enhancing our understanding of this dynamic background, the study intends to provide practical recommendations and strategies for banks to influence the benefits of E-Banking while mitigating potential drawbacks. This research contributes to the broader discussion on e-banking technology adoption and its implications in emerging economies and banking practices.

Financial technology and economic growth nexus in the East African community states

PurposeThis paper aims to examine the causation linking financial technology to economic growth in the East African Community states from 1997 to 2019.Design/methodology/approachAutoregressive distributed lag is used. Gross domestic product per capita proxies economic growth, automated teller machines, point of sale, debit card ownership and mobile banking measure financial technology.FindingsThe results unveil a significant relationship between financial technology and economic growth. The findings show bidirectional causality between automated teller machine and economic growth, with unidirectional causation from economic growth to point of sales and internet banking, mobile banking and government effectiveness to economic growth. The error correction term is negatively significant, demonstrating a long-term convergence between Fintech measures and economic growth.Research limitations/implicationsThe governments should effectively enact and implement policies that protect investments in financial technologies to boost economic growth in the East African Community countries. The government should reduce taxes on financial technology equipment and related services. The use of automated teller machine, debit card ownership and internet banking should be encouraged through cashless transactions. Financial institutions should adopt cashless operation policies to encourage the use of financial technologies.Originality/valueResearch results on the bond between financial technology and economic growth are not conclusive. These studies demonstrate that technological innovations are double edged-swords, with both positive and negative sides. The results are conflicting; some reveal positive relationships, while others show negative links. Hence, research is required to fill the lacuna.

STUDI KOMPARASI PADA ADOPSI FINANCIAL TECHNOLOGY TERHADAP PROFITABILITAS PERBANKAN DI INDONESIA

The purpose of this study was to examine the long-term and short-term effects of adopting financial technology on banking profitability. This study uses the Error Correction Term analysis method to see the effect of the independent variables on the dependent variable both in the short term and in the long term. the independent variables in this study are mobile banking, internet banking, and phone banking and the dependent variable is profitability proxied by the Return on Assets (ROA) ratio. This study uses a quantitative research approach. The data source is from the official website of the Indonesia Stock Exchange, namely www.idx.co.id in 2013 - 2022. The total population 47 companies. Total sample 34 companies and sampling method is purposive sampling. Purposive sampling is sample with certain criteria. the results of hypothesis testing on mobile banking and internet banking variables that in the long term and short term mobile banking and internet banking have a positive effect on profitability. On the phone banking variable, namely in the long term and short term, phone banking adoption has no effect on banking profitability.

Cyber Threats and Implications: A Study from the Perspective of E-banking

E-banking refers to electronic banking. E-banking is a generic term for the delivery of banking services and products through the electronic medium. Internet banking allows a customer to perform banking transactions without visiting physically to the bank. At present, E-banking system is widely accepted because cost of transactions and cost of delivering in E-banking are significantly lower than in the traditional banking system. At the same time, E-banking enables to increase the efficiency of a banker that lowers the cost of operation. In India, the share of transaction volume was 15.6 per cent in the year 2020, whereas online payments and other electronic activities were registered 22.9 per cent in the same year. It is expected to reach 71% by 2025. Digitization is expanding and advancing forward in banking sector. While challenges are also mounting in securing the online banking transaction and financial information. E- banking shoulders to get the work done easier and fast. But simultaneously cybercrime paved the way for itself and has become a security threat. The study mainly emphasizes on cyber frauds in bank, online transaction, challenges in e-banking, impact of cybercrime. It also offers ample of useful suggestions on cyber security to avoid e-banking fraud.

The Influence of Mobile Banking, Internet Banking, and Automated Teller Machine (ATM) Transactions on Fee Based Income

This research aims to determine the effect of Mobile Banking, Internet Banking, and Automated Teller Machine (ATM) on Fee Based Income. It is hoped that this research can contribute and explain the factors that influence fee-based income for conventional banking companies on the Indonesian Stock Exchange. The objects of this research are Mobile Banking, Internet Banking, and ATM as independent variables and Fee based income as the dependent variable. The subject of this research is conventional banks listed on the Indonesia Stock Exchange (BEI) in 2018-2022. The research sample consisted of 5 (five) banks, namely Bank Mandiri, Bank Negara Indonesia (BNI), Bank Central Asia (BCA), Bank CIMB Niaga, and Bank Mega. Data analysis using multiple regression using the SPSS 22 application. Research findings that Mobile Banking, Internet Banking and ATM together have a significant effect on Fee based income. There is a positive influence of Mobile Banking on Fee Based Income but there is no influence of Internet Banking on Fee based income. This indicates that the large number of Internet Banking users tends not to increase the bank's Fee Based Income. There is a positive and significant influence of ATMs on Fee based income, this indicates that the more customers who make transactions using ATMs, the greater the Bank's Fee based income will increase.

Pengaruh Financial Technology Terhadap Kinerja Keuangan Perbankan

The development of information and communication technology has brought significant changes in various aspects of human life. One aspect that has been greatly affected is the banking sector. The digital revolution has changed the way banking operates, especially in terms of customer service and financial management. This study aims to see how the influence of Internet Banking and Mobile Banking on financial performance in banks as measured by Return On Assets (ROA), Return On Equity (ROE), Capital Adequency Ratio (CAR), Non Performing Loan (NPL). The population in this study are banks listed on the Indonesia Stock Exchange (BEI). The method used is non probability sampling method with purposive sampling technique and obtained 10 banks used as samples for the research period for 3 years (2020-2022). The data analysis technique used is Structural Equation Modeling Partial Least Square (SEM-PLS) with the help of SmartPLS (v. 4) software as a data analysis tool. The results of this study indicate that Internet banking has no effect on ROA, CAR and NPL but has a significant negative effect when measured by ROE. Mobile banking has a negative effect on financial performance calculated using NPL but mobile banking has no effect on ROA, ROE and CAR. Future research is expected to add other variables that have an influence on financial performance in banking and increase the number of research periods.

The Impact of Digital Currency on Demand for Money: Evidence from Indonesia

The purpose of this study is to examine the impact of digital currency transaction variables on the demand for money in Indonesia. The data used are data on the volume of mobile banking transactions, internet banking, interest rates, the level of currency fluctuations, and inflation on the demand for money for the period 2013 to 2022. Data analysis uses Autoregressive Distributed Lag (ARDL) cointegration method. The results of regression testing can be concluded that the long-term relationship is valid. In addition, using CUSUM and CUSUMQ from the quadratic test, the demand for money in Indonesia is relatively stable using the narrow definition of money, it implies that there haven't been significant and persistent shifts in either the mean or the variance of the narrow money supply. A stable demand for money suggests that the economic agents in Indonesia, such as households and businesses, are not undergoing substantial changes in their preferences or behaviors related to holding money. This stability can have implications for monetary policy and economic planning, as it indicates a certain level of predictability in the demand for money. However, it's crucial to keep in mind that economic conditions and factors influencing the demand for money can change over time. Therefore, continuous monitoring and periodic reassessment of the stability of the demand for money are necessary for accurate economic analysis and policy formulation.

Сan citizen Internet banking in China become a champion in the digital transformation era?

This study aims to make theoretical and practical contributions by addressing stagnation in the context of digital transformation (DX) and proposing specific measures. Focusing on the banking industry’s skilled response to rapid changes to maintain and improve competitiveness, this study employs quantitative methods to investigate the expectations and assessments of Chinese financial service users regarding Internet banking. With a clear objective, this study seeks to contribute theoretically and practically by addressing stagnation in DX. Specifically, it focuses on the banking industry’s response to rapid changes, employing quantitative methods to assess and understand Chinese financial service users’ expectations of Internet banking. The results reveal that the prevalent use of payment services through mobile applications has significantly expanded the scope of financial services among citizens. Key factors driving innovation in the financial industry through fintech include close communication with consumers, service enhancement and sophistication and ensuring reliability. Privacy and the ethical use of personal information have been found to function as an indirect pathway that plays a vital role in socio-economic activities, acting as a critical element for the future development of the financial industry. These findings provide actionable insights for fostering innovation and development in the financial sector. The uniqueness of this study lies in its primary quantitative data analysis, which compares the prospects of financial services in China’s advanced DX market. It shows the path the banking industry should take, emphasising the simplicity of mobile applications and the high frequency with which vital components are used. Going beyond theoretical insights, this research is a practical guide for implementing specific actions in a real business environment. It provides valuable insights into the Chinese market and offers guidelines for the broader financial industry currently navigating the intense waves of DX, ultimately aiming for sustainable and effective DX.

The Impact of E-Service Quality on E-Satisfaction and Loyalty in Btn Mobile: in The Evidence of BTN Mobile Banking Users in Jabodetabek

This research study the relationship and the impact of e-Service Quality on e-Satisfaction and loyalty in the BTN Mobile Banking users. This study uses modified dimensions of the E-SERVQUAL instrument to determine the e-SQ of BTN Mobile Banking service in JABODETABEK which are Personal Needs, Site Organization, User-friendliness and Efficiency. 103 respondents were involved in this study and the results showed E-SQ have significant impact to E-Satisfaction and Loyalty. Data analysis was performed using SEM-PLS. The limitations of this study are that the scope of the population is only in the special province of Jakarta, and the variables related to e-satisfaction are only emphasized from the perspective of user experience and interface while the research scope on e-satisfaction is very wide. The findings of this study show that in Internet banking, in addition to the technical and functional aspects of -SQ reflects the importance of contribution to e-satisfaction and e-loyalty.

Digital disruption and market structure: the case of internet banking

Abstract We provide an econometric study of the adoption of internet banking, a case of a potentially disruptive digital technology which could devalue/replace an incumbent legacy. Our aim is to better understand the extent to which it disrupted the market structure where incumbents start with a strong customer base. We study both regional integration and national concentration dimensions of market structure in EU member states during the period of 1997–2018. We find that internet banking was initially introduced earlier in more concentrated markets. Although consumer uptake was slower over time than in less concentrated markets, the initial higher consumer penetration in more concentrated markets was sustained until market maturity. We further find a substantial de-concentrating effect of internet banking, and evidence of integration in previously regionalized markets following uptake.

E-RUPI - An Innovation to Accelerate Financial Facilities in India

E-Rupi a basically a prepaid voucher issued by the Indian Government. e-RUPI is basically a digital voucher which a beneficiary gets on his phone in the form of an SMS or QR code. It is a pre-paid voucher, which he/she can go and redeem it at any centre that accepts it. The users of this seamless one-time payment mechanism will be able to redeem the voucher without a card, digital payments app or internet banking access, at the merchants accepting e-RUPI. This paper studies the available literature. Through this study, we have tried to focus on the mechanism of the new concept of E-Rupi, the benefits, challenges faced by the government in implementation.

Inequality In Banks

This research paper delves into the challenges people, regardless of their age, face when dealing with money, especially in the context of banks where financial security should be paramount. Money plays a critical role in today's economy as a medium of exchange, unit of account, and store of value, impacting financial planning and security. However, the shift towards online banking has resulted in various errors, financial losses, and data breaches due to user inexperience. The paper suggests that allowing traditional banking as a secondary option could prevent these issues. Traditional banking, with its physical branches and face-to-face interactions, offers benefits such as in-person services, enhanced financial security, and reliable access to loans, making it a preferable choice for many. The research paper aims to shed light on the persistent issues surrounding net banking, or alternatively, the idea of internet banking in general. This may manifest as the person making irrevocable errors or as dishonest behaviour on the part of other parties. Reversal mechanisms, which need to be in place from the beginning, are missing, particularly when it comes to financial matters. When all of the foregoing is fully understood, most consumers would naturally choose a traditional banking option. To save time and money on operating expenses, the banks do not offer this option. The price for this is higher customer service. The larger picture is realising the benefits of traditional banking and banks providing more accessible options to the public rather than restricting them to net banking alone, which leads to issues. Due of the possibility of further issues down the road, these issues are typically experienced by members of the lower middle class who lack access to online banking services and are not technologically aware.

Analisis Faktor yang Berpengaruh Terhadap Kepercayaan dan Kepuasan Nasabah Pengguna Mobile Banking

Technology has made banking more user-friendly. Mobile banking a type of internet banking uses mobile devices to conduct financial transactions. Mobile banking makes banking easier and faster. To meet consumer expectations and build trust, loyalty, and happiness, mobile banking must be of high quality. Digital banking customers prioritize privacy and security, therefore banks must address these concerns. To reduce these concerns and retain customers, banks must provide excellent service. The purpose of this study is to analyze the effect of the overall trust dimension in explaining the mediator role of the trust variable in shaping customer satisfaction. Before the research, validity and reliability tests were carried out on each statement using Structural Equation Modeling (SEM) PLS. In this study, 165 government bank customers in Indonesia were involved as respondents. Based on the results of research that has been conducted, there is a significant positive influence between service quality, information quality, system quality, Structural assurance, Task Characteristic, Perceived of usefulness, Perceived ease of use on customer trust. This influence shows that the better customer trust, the higher customer satisfaction. Improving system quality, information quality, in mobile banking services will help companies strengthen customer trust and increase perceptions of service usefulness, leading to more positive and effective interactions.

Examining the factors affecting technology continuance and its role in economic growth of emerging economies

Technological developments have been thought to portray a pivotal role in promoting economic growth, particularly within the financial sector in developing economies which has been reported significantly influenced by users' perceptions of technology usability, which are shaped by their technology usage experiences. This study integrates antecedents of the UTAUT model with the Innovation Diffusion Theory to empirically assess the perceived usability of Internet banking and its role for economic growth. Post-experience data were collected from 315 banking clients in Lahore, Pakistan. After validating the sample's reliability, validity, adequacy, and sphericity, a structural equation model (SEM) was employed to test the study's hypotheses. The findings revealed that the perceived usability of bank clients was positively influenced by perceived ease of use and perceived usefulness, which in turn impact their intention to continue the use of Internet banking. Mediating role of perceived usability did not support by the results. However, the presence of ease of use and usefulness exhibited a positive moderating effect of financial risk on users' intention to continue using Internet banking. These findings provide valuable insights for academics seeking to comprehend users’ experience and usability about the use of technology. Additionally, the results steer policymakers to formulate effective policies that maintain users’ engagement in Internet banking, thus contributing to economic growth through effective use of technology. Notably, this study contributes new perspectives based on data collected from functioning Internet banking users in developing economies.

UTAUT Model Integration Analysis in the Context of BCA e-Banking Adoption

This study aims to analyze the UTAUT Model Integration in the context of e-Banking BCA adoption. Research related to the use of Internet Banking often uses E-Service Quality. Therefore, it is necessary to do research about the effect of service quality using BCA Internet Banking. The Study was conducted by determining a sample of 121 student who use BCA Internet Banking. The research used Structural Equation Modeling (SEM) analysis with IBM SPSS AMOS V.20. The finding show that: (1) Web design perceptions will not have a positive relationship with the intention of adoption users and will have a positive relationship with the intention of adoption users; (2) Service perceptions to consumers will not have a positive relationship with the of adoption users and will be positively related to the intention of adoption users; (3) Perception of assurance will not be positively related to the intention of adoption users and will be positively related to the intention of adoption users; (4) Perception of reliability will not be positively related to the intention of adoption users and will be positively related to the intention of adoption users. From the research results, it can be seen that Assurance and Reliability have a significant effect on User Intention to adopt Internet Banking, however Web Design and Customer Service do not have a significant effect on User Intention to adopt Internet Bankin Keywords: UTAUT, E-Service Quality, SEM, User Intention to adopt Internet Banking.

Extending Technology Acceptance Model (TAM) to Investigate the Factors Affecting the Behavioral Intention of Internet Banking in Turkey

The purpose of this study is to investigate the factors affecting the behavioral intention of internet banking (I-BNKNG) in Turkey. In this study, users' adoption of I-BNKNG will be examined with Technology Acceptance Model and newly added variables. The data obtained from 441 I-BNKNG users by the survey method are analyzed with the structural equation model. According to the results of the study, perceived credibility, self-efficacy and compatibility affect perceived ease of use (PEA) and perceived usefulness (PUS). In addition, the study reveals both the relationship between PEA and PUS and the result that PEA and PUS impacts satisfaction. Finally, PEA, PUS and satisfaction are the main determinants of behavioral intention in I-BNKNG.

INTERNET BANKING AND BANKING SERVICES: PROBLEMS AND PROSPECTS OF DEVELOPMENT

INTERNET BANKING AND BANKING SERVICES: PROBLEMS AND PROSPECTS OF DEVELOPMENT