Online Banking Users Research Articles

Inclusion of Perceived Risk with TAM in Measuring Attitude Toward online Banking

Technology adaption is relatively a costly and has a low success rate in countries like Bangladesh. In 1989, Fred Davis suggested the technology acceptance model (TAM). It examines the mediating role of perceived ease of use and perceived usefulness in their relation between systems characteristics (external variables) and the probability of system use (an indicator of system success).In present study the researcher had concluded that TAM is a useful model, but has to be integrated into a broader one which would include more variables like perceived Risk to the adoption of the innovation model. The hypothesized model was validated empirically using a sample size of 389 users of online banking which reveals that Attitude positively influences the intention to use Internet Banking moreover, Perceived ease of use, Perceived usefulness positively influence the intention and attitude to use Internet Banking on the other hand perceived risk has a negative influence on both. Keywords: TAM, Perceived Usefulness, Perceived Ease of Use, Perceived Risk ,Attitude. DOI : 10.7176/EJBM/11-2-08

A study towards the digitalization of Indian banking sector

Today's world live with digitalization, nobody having time to stand in a queue. So to give customer quicker services and to compete in this world, several industries adopting digitalization in which one of them is “banking Sector”. In India too, banking sector is getting digitalized and getting collaborated with many companies to provide faster and secured services to customer. Indian banking sector is coming up with new technology so that make their presence everywhere. Several challenges is also faced by banks to get digitalized but today's generation is techno savvy and banks have to meet their expectations. This study basically talks about the growth in the online banking users of rural and urban areas and also the trends that is being followed by the banks and the scale of growth in providing that technology to the users. Indian Government has also initiated various schemes to get their people to adjoin with Indian banking digitalization campaign.

Quantifying Inertia in Retail Deposit Markets

This paper investigates inertia within and across banks in retail deposit markets using detailed panel data on consumer choices and account characteristics. In a structural choice model, I find that costs of inertia are around one third higher for switching accounts across compared to switching within banks. Observable proxies of bank-level switching costs (number and type of additional financial products) explain most of this cost premium, while online banking usage reduces inertia. Consistent with theory, I provide evidence that banks incorporate inertia in their pricing as older accounts pay lower rates than comparable newer accounts. Counterfactual policies reducing inertia shift market share to more competitive smaller banks, but only eliminating inertia within banks already results in high potential gains in consumer surplus. This suggests that facilitating bank switching alone might be insufficient to improve consumer choices.

Online customer relationships: switching cost drivers for different relationship lengths

ABSTRACT The purpose of this paper is to examine the impact of selected online drivers on perceived switching costs, with consideration of the personality trait of Openness to Experience. The research explores how these relationships vary with varying lengths of relationship. Data were collected from online banking users using paper-based surveys and were tested using structural equation modeling. Openness to Experience influences online trust and satisfaction positively, perceived switching costs negatively, but not online loyalty. Online satisfaction affects online loyalty positively, but not perceived switching costs. Online trust predicts online loyalty and perceived switching costs positively. Online loyalty enhances perceived switching costs significantly. The explanatory power of the model fluctuates over different relational periods and is best when customers’ relationships reach medium-term duration. The research adds new insights to the customers’ online relationship literature and provides managers with new ways to customize online banking services for better online relational strategies.

The Moderating Effect of Demographic Variables on Mobile Banking Adoption: An Empirical Investigation

The objective of this article is to analyze if demographic characteristics influence user attitude towards mobile banking. The sample comprise of current users of online banking. Although earlier studies on technology adoption models have received considerable empirical validation, most of the studies did not consider moderating variables. Among those, which consider moderating variables, primarily explored are gender, age and income. By including other moderator variables in the model, we hope to lessen the inconsistencies found in past research studies. To test the moderating effect, two methods, viz. multiple linear regression and Fisher Z transformation are used. Results show that gender, age, qualification, experience, occupation, income and marital status were significant moderating variables. However, educational background did not show any moderating effect. Our results suggest that by extending the Technology Acceptance Model (TAM) and Diffusion of Innovations (DoI) theory, the research provide insights into the factors influencing consumers’ attitude to adopt mobile banking applications. Besides, the results of moderating effect improve our understanding of the demographic differences, which influence the degree of mobile banking adoption. This study will help researchers and practitioners to come up with improved mobile adoption frameworks and applications with greater understanding of the influence of demographic factors.

Consumer Acceptance of Online Banking: Application of Technology Acceptance Model

This research reports the findings of a study concerning the acceptance of online banking in Pakistan. It investigates customer's adoption within the context of Pakistan online banking services whereby the research frame work is based on the extension of Technology Acceptance Model. The research model included factors that would influence the acceptance of online banking. The frame work dimensions includes online banking usage, quality of internet connection, perceived enjoyment, perceived usefulness, perceived ease of use and security & privacy. A survey was conducted to gather the data for study. Reliability, correlation and factor analysis were used to analyse the data. Results showed that quality of internet connection, amount of information on online banking and security and privacy has positive influence on online banking usage. Theoretical contributions and practical implications of the findings are discussed in the paper and suggestions for future research are proposed.

Developing SWOT/ TOWS Strategic Matrix for E-Banking in Lebanon

The banking sector of Lebanon has witnessed a significant shift in its performance and services provided over the past years in line with the global transformation in information technology. The diffusion of internet in most of financial sectors has driven the banking sector to adapt new technologies and deliver its services electronically through E-banking. This paper highlights the current state of e-banking in Lebanon and analyzes the secondary data of previous literature to develop a SWOT/ TOWS strategic matrix. Policy makers, Bankers and online banking users can benefit from this study for better understanding and application of e-banking in Lebanon. Future studies can extend the literature and show more evident and updated data in terms of strength, weakness, opportunities and threats facing the e-banking sector in Lebanon or compare it to other countries strategies.

Comparing three models to explain precautionary online behavioural intentions

PurposeThe purpose of this paper is to compare three social cognitive models in their ability to explain intentions of precautionary online behaviour. The models are: protection motivation theory (PMT), the reasoned action approach (RAA) and an integrated model comprising variables of these models.Design/methodology/approachData were collected from 1,200 Dutch users of online banking by means of an online survey and analysed using partial least squares path modelling method.FindingsThe two models equally explain about much of the variance in precautionary online behaviour; in the integrated model, the significant predictors of the two models remained significant. Precautionary online behaviour is largely driven by response efficacy, attitude towards behaviour and self-efficacy.Research limitations/implicationsOne limitation is that the predictor variables – “self-efficacy” and “attitude” – are represented by one item only in the path-analysis because of high cross-loadings of the other items with the dependent variable.Practical implicationsThe results give practitioners a potentially wider range of options to design preventative measures.Originality/valueThe three models are successfully applied to online banking. This paper concludes that both PMT and RAA make a unique contribution in explaining variance for precautionary online behaviour. This paper is a re-publication of a previous conference paper (Jansen and van Schaik, 2016).

Consumer-based virtual brand personality (CBVBP), customer satisfaction and brand loyalty in the online banking industry

PurposeThe purpose of this paper is to develop and test a consumer-based virtual brand personality (CBVBP) concept by examining its sub-dimensions in the context of online banking, thus extending existing brand personality research. In addition, it examines the relationship between CBVBP with customer satisfaction and brand loyalty.Design/methodology/approachA survey method was employed and data were collected from 219 online banking users in Malaysia. A series of hypotheses were tested using both multiple and hierarchical regression analyses to determine the direct and mediating effects of CBVBP, customer satisfaction and brand loyalty.FindingsThe dimensions that comprise CBVBP are found to include Excitement, Sophistication and Competence. These dimensions help online bankers to strategise, communicate and position their online banking sites better in order to compete against other online banking services. The study confirmed positive relationships between CBVBP, customer satisfaction and brand loyalty. Specifically, in the online banking context, customer satisfaction partially mediates the relationship between CBVBP and brand loyalty, extending the current understanding of online branding, consumer satisfaction and brand loyalty.Originality/valueThe major contribution of this study lies in the development of the CBVBP concept and to study its direct and mediating effects with customer satisfaction and brand loyalty. The study emphasises the importance of measuring the virtual brand personality traits as part of an overall online banking brand strategy in the virtual environment in order to better understand how to position against competitors.

An integral model of e-loyalty from the consumer's perspective

The purpose of this study is to develop a model which explains how the loyalty of individual users of online banking is formed. In order to do this, first, the variables that contribute to the e-loyalty have been identified and subsequently have been validated, considering their reflective or formative character. The literature review leads us to consider the customers’ e-satisfaction and e-trust, the switching barriers and the perceived quality of the website as main antecedents of the e-loyalty. Then, a model has been estimated using structural equation modeling (SEM). Results show that e-satisfaction, e-trust and switching barriers have a direct effect on e-loyalty. Also, e-trust creates e-loyalty with e-satisfaction as a mediator; and quality of the website creates e-loyalty mediated by e-satisfaction and/or e-trust. The developed model helps improve the understanding of the creation of loyalty from an individual in a virtual context.

The Impact of Cost, Customer Experience, Ease of Use, and Trust towards Adoption of Online Banking

<p>The purpose of this study is to examine the factors that influence the adoption of online banking in Malaysia, particularly trust, customers’ experience, cost, and ease of use. Questionnaire was distributed to 120 online banking users in Kota Damansara, Selangor, Malaysia. Results showed that customer trust and experience have significant relationship towards adoption of online banking. Nonetheless, cost and ease of use was found to be insignificant in this study. The results provide important information for bank providers in designing a mass-oriented or user-friendly internet banking that would attract people to adopt online banking.</p>

Online Relationship Quality: Testing an Integrative and Comprehensive Model in the Banking Industry

ABSTRACTThis article examines online relationship quality as a multidimensional, integrative construct comprising trust, commitment, and satisfaction. Important antecedents of the construct identified in traditional relationship marketing and e-commerce literature (classified respectively under “relationship characteristics” and “website characteristics”) are also investigated. A Web-based questionnaire is administered to 476 online banking users who are members of a large consumer panel. Findings demonstrate that website characteristics (in order of importance: ease of use, website design, information quality, and security/privacy) are especially important for fostering online relationship quality in the banking sector. The moderating effect of gender and age are also examined while highlighting telling differences (greater impact of perceived relationship benefits for men and Generation Y, communication for women, ease of use for women and security/privacy for Baby Boomer).

Quantifying Inertia in Retail Deposit Markets

This paper investigates inertia within and across banks in retail deposit markets using detailed panel data on consumer choices and account characteristics. In a structural choice model, I find that costs of inertia are around one third higher for switching accounts across compared to switching within banks. Observable proxies of bank-level switching costs (number and type of additional financial products) explain most of this cost premium, while online banking usage reduces inertia. Consistent with theory, I provide evidence that banks incorporate inertia in their pricing as older accounts pay lower rates than comparable newer accounts. Counterfactual policies reducing inertia shift market share to more competitive smaller banks, but only eliminating inertia within banks already results in high potential gains in consumer surplus. This suggests that facilitating bank switching alone might be insufficient to improve consumer choices.

Electronic Service Quality and its Impact on Usage of Online Banking Users with Special Reference to India

Electronic Service Quality and its Impact on Usage of Online Banking Users with Special Reference to India

The relationship between perceived e-service quality and brand equity: A simultaneous equations system approach

Using the data collected from the online banking users in Taiwan, we build a hierarchical model of e-banking service quality and investigate the relationships among e-service quality, trust, satisfaction, loyalty, and brand equity. Moreover, the simultaneous equations system approach is also applied to transfer the traditional satisfaction-loyalty path into the simultaneous relationships between trust and loyalty, and between satisfaction and loyalty. As the structural form coefficients demonstrate the direct relations between our research constructs, the reduced form estimates further disclose the total impacts of the quality of e-banking service on trust, satisfaction, loyalty, and brand equity, respectively. The results indicate that the perceived quality formed through interaction with an online banking service positively affects customer trust and satisfaction, which in turn influence loyalty and brand equity. The significant simultaneous relationships between trust and loyalty, and between satisfaction and loyalty, are confirmed by our data, implying that these relationships must be determined simultaneously, rather than sequentially.

Assessing Usable Security of Multifactor Authentication

An authentication mechanism is a security service that establishes the difference between authorised and unauthorised users. When used as part of certain website processes such as online banking, it provides users with greater safety and protection against service attacks and intruders. For an e-banking website to be considered effective, it should provide a usable and secure authentication mechanism. Despite existing research on usability and security domains, there is a lack of research on synthesising the contributions of usable security and evaluating multifactor authentication methods. Without understanding the usability and security of authentication mechanisms, the authenticating process is likely to become cumbersome and insecure. This negatively affects a goal of the authentication process, convenience for the user. This thesis sought to investigate the usability and security of multifactor authentication and filled an important gap in the development of authenticating processes. It concentrated on users’ perspectives, which are crucial for the deployment of an authenticating process. To achieve the thesis goal, a systematic series of three studies has been conducted. First, an exploratory study was used to investigate the current state of the art of using multifactor authentication and to evaluate the usability and security of these methods. The study involved a survey of 614 e-banking users, who were selected because they were likely long-term users of online banking and they had two different bank accounts, a Saudi account and a foreign account (most foreign accounts were British). The study indicated that multifactor authentication has been widely adopted in e-banking in Saudi Arabia and the United Kingdom, with high levels of security and trustworthiness as compared to single factor authentication. The second study was a descriptive study of the most common authentication methods. This study aimed to learn more about commonly used methods that were identified in the previous study and sought to propose an appropriate combination of authentication methods to be evaluated in the third study. The third study was an experimental study with 100 users to evaluate the usable security of three different multifactor authentication methods: finger print, secure device and card reader. A web based system was designed specifically for this study to simulate an original UK e-banking website. One of the main contribution of this study was that the system allowed users to choose their preferred authentication method. Moreover, the study contributed to the field of usable security by proposing security evaluation criteria based on users’ awareness of security warnings. The key result obtained indicated that fingerprinting was the most usable and secure method. Additionally, the users’ level of understanding security warnings was very low, as shown by their reaction to the security indicators presented during the experiment.

Online banking adoption

Purpose – The study considers a five-factor model toward online banking adoption in the context of banking customers in India and validates the proposed model. In addition, the authors consider the impact of validated factors on overall satisfaction of customers. Design/methodology/approach – A five-factor online banking adoption model has been tested for reliability and validity by confirmatory factor analysis. For determining contribution of factors toward overall satisfaction level of banking customers structural equation modeling has been adopted. Four explanatory variables have been used to assess the overall satisfaction level of online banking users. A structured questionnaire incorporating variables identified from literature has been used as survey instrument for the study. Final respondent sample was 280 banking customers. Findings – Trust, Usage Constraint, Ease of Use, Accessibility and Intention to Use as reliable and valid factors determining internet banking adoption among customers in India. Accessibility, Usage Constraints, Intention to Use portrayed strong and significant relationship with overall customer satisfaction. Trust and Ease of Use are relatively weaker and insignificant contributors toward overall customer satisfaction. Originality/value – The existing studies in the context of e-banking in general and online banking in particular have been majorly confined to proposing key drivers toward adoption of such alternate banking mediums. By providing an insight towards satisfaction level of customers adopting online banking the proposed model attempts to fill this gap. As the study relates to banking customers in India, findings will be of particular value to domestic and foreign banking entities looking to leverage technology as a tool to attain stronghold with an emerging economic set-up.

Does customer sociability matter? Differences in e-quality, e-satisfaction, and e-loyalty between introvert and extravert online banking users

Purpose – The purpose of this study is to investigate the relationships between e-quality, e-satisfaction and e-loyalty and test how these relationships vary across different levels of customer sociability in the UAE banking industry. Design/methodology/approach – The relative importance of customer sociability in the relationships between e-quality, e-satisfaction and e-loyalty was examined. A self-administered questionnaire was developed, and data were collected from a final sample of 245 bank customers. The study’s conceptual model and four hypotheses were tested using AMOS18. Findings – E-quality influences e-satisfaction, which, in turn, affects customer e-loyalty. This study’s findings confirm that the relationships between e-quality, e-satisfaction and e-loyalty are stronger if the online banking user is an introvert (less social) rather than an extravert (very social). Practical implications – This study demonstrates how bank managers could use the sociability level of their customers to manage the relationships between e-quality, e-satisfaction and e-loyalty. Originality/value – The key contribution of this paper is that it demonstrates how the customer sociability level might affect the relationship between customers and online banking services.

Executive summary of “Does customer sociability matter? Differences in e-quality, e-satisfaction, and e-loyalty between introvert and extravert online banking users”

Executive summary of “Does customer sociability matter? Differences in e-quality, e-satisfaction, and e-loyalty between introvert and extravert online banking users”

The revitalising effect of ISO 9001 on dissatisfied customers

This study surveyed 123 online banking users who have experienced at least once a non-routine encounter while doing their banking, to investigate whether ISO 9001 certification affects their perceptions of service recovery and consequently satisfaction, value and loyalty and if ISO 9001 enhances the relationships strength between the four constructs. In pursuit of this objective, the study proposed a model linking loyalty and its antecedents to investigate the factors that might influence customer satisfaction and loyalty as well as the possible mediating/moderating role. The overall results showed service recovery was directly and positively related to customer satisfaction and value, which in turn significantly influence loyalty. However, the mediating/moderating effect of customer satisfaction on the relationship between service recovery and customer loyalty was partially supported. Moreover, the results showed ISO 9001 certification has no influence on customers' perceptions of service recovery, satisfaction, value and loyalty. Nevertheless, companies should consider ISO 9001 certification since it was shown to encourage satisfied customers to remain loyal to the firm.