An Analysis of the Strengths and Weaknesses of Internet Banking

Question: Analyse the strengths and weaknesses of Internet banking. Answer: Research Title: An analysis of the strengths and weaknesses of Internet banking. The aim of the study will be to find out the advantages and challenges faced in the use of internet banking by users. Research Model In order to collect the information about internet banking use from the previous research works, a literature review will be conducted for the research work (Saunders et al 2009). In this section, the report of the previous research works will be analyzed. In the area of data collection, both of the primary and secondary data will be collected. In order to collect the primary data, the sample population will consist of users of internet banking. The secondary data will be collected from peer reviewed journal articles, research reports and annual reports of some selected banks providing internet banking facilities (Harrison and Reilly, 2011). Survey Questionnaires: Survey questionnaires will be designed with some simple closed ended questions about the use of internet banking. The questions will be formed to find out the reason behind choosing internet banking by the users. The respondents will be asked to answer about the potential advantages they are getting from the use of internet banking. They will be also asked about the challenges they are facing in this area. The survey will be conducted through an online platform. The questionnaires will be distributed to the respondents via email. They will answer the questions and send the questionnaires through e-mail. Secondary Research: The secondary research of the research work will collect qualitative data from the research reports and peer reviewed journals available in the area of use of internet banking. Some popular banks which are providing internet banking facilities to their customers will be selected as the sample population for secondary data collection (Klassenet al. 2012). The annual reports of the banks will be analyzed for understanding as to how they are getting advantages of internet banking and what are the challenges they are facing in their business while using internet banking. Key issues in e-banking strengths and weaknesses: the case of two Jordanian banks. Citation: Shannak, R.O., 2013. Key issues in e-banking strengths and weaknesses: the case of two Jordanian banks.European Scientific Journal,9(7). Research Question: What are strengths and weaknesses of the internet banking faced by the two selected banks? Methodology: This research was an explanatory research work. It was conducted by focusing on different topics of internet banking found by different researchers. The topics were analyzed from different angles on order to find out the pros and cons of internet banking. The information about internet banking concepts and different types of advantages and disadvantages were collected from the research reports of different countries, but the main data of this research study was collected from the internet banking industry of Jordan. The data collection methods used in the research study included interview, questionnaires and the review of previous literatures. Interviews were conducted with executives of local banks and survey questionnaires were used to collect feedbacks of internet banking among users. Findings: The findings of the research report is indicating that most of the internet banking users of the two case banks have preferred this service as very good from the aspect of the time and efficiency. The time and effort needed for the bank account handling in the internet banking is less than the manual banking works. The bank perspective was also considered in this research study and it has been found that the banks are also getting a lot of advantages in the area of handling the bank transactions. As per the findings of this research study, almost 70% of the internet banking users preferred this as a good banking service. The transactions of the internet banking are easy to copy, transfer or store than the paper based transactions. While conducting the paper based transactions, only two parties can be involved in the transaction, but in the case of online transactions, many parties can be involved in one transaction. Internet banking is associated with some government rules and regulations. The banks have to maintain the legislations for internet banking of the country in which they are working. As per the research findings, the main challenge of internet banking is the phishing sites and hackers. Critical Analysis: The research work was conducted in the context of two Jordanian banks which are using internet banking transactions. The true facts about the use of internet banking were found in this research work. After analyzing the report of this research work, it can be concluded that the common people are getting a lot of extra facilities with the use of internet banking. The banks are also getting the scope of easily handling their business in order to achieve a high level of growth in their business. The data handling through the online process is much easier than the manual handling. The scope of corporate work through the use of the internet banking is providing a smoother platform for conducting the banking business (Nasri and Charfeddine 2012). The main challenges faced in this research study are the government legislations and hackers. The online banking business has some special legislation and the banks have to maintain these. The whole area of the internet is affected by the hackers. Internet banking has a high risk of unauthentic transactions via the phishing sites and hackers. Many internet banking users have faced the problem of hacking of online bank accounts and then stealing their money from their bank accounts through unauthentic transactions. systematic review ofInternet bankingadoption Citation: Hanafizadeh, P., Keating, B.W. and Khedmatgozar, H.R., 2014. A systematic review of Internet banking adoption.Telematics and informatics,31(3), pp.492-510. Research Question: What are the causes of adopting internet banking services by the users and what are the advantages they are getting from the use of the internet banking? Methodology: It was a descriptive research work and the previous peer reviewed journal articles were analyzed for completing the research work. The online libraries were used for searching the previous research papers. 187 peer reviewed journals were searched for the research study. After analyzing the topics of the searched journals, 165 journal articles were chosen for conducting the research study. The finding and analysis of the research work were analyzed for finding the answer of the research question of this research study. The different components of internet banking and the different types of services provided by internet banking were investigated in this research work. Findings: As per the findings of the research work, the use of internet banking has increased at a high rate. The technology has grown to an advanced level in the past few years and these have given a lot of advantages in the use of the internet banking services. The perceived risks of internet banking have also reduced to a lower level with the use of new innovative protection tools of information technology. The growth of the business of internet banking industry has been analyzed from the year of 1999 to 2012. It has been found that the growth of this industry has increased rapidly and the growth per year has also increased. The growth of internet users has also been analyzed in this research paper and it has been found that the number of general internet users has also increased in the past few years. This is also a big reason for the growth of internet banking users. Critical Analysis: The business of the internet banking industry is totally dependent on the use of innovative technologies in information technology. The area of information technology is facing new technical advantages day by day. This is the main cause of the rapid growth of internet banking business. The customers are obtaining better advantages from the usage internet banking through new technical development. This is affecting the customer satisfaction rate positively in the area of the internet banking use. One of the major challenges of using internet banking is the proper awareness about internet handling. The findings of this research has shown that the number of internet users have increased to a higher level. This is indicating that the internet facilities are becoming easier for the normal people. The availability of internet is one of the major causes for high growth of internet banking use by normal people. The awareness about the advantages and security issues are also increasing and influencing the growth of the internet banking industry. The high rate of growth of internet banking as found in the research paper is indicating that this industry will be able to continue the rate of growth in the future as well (Martins et al. 2014). Customers perception on usage of internet banking Citation: Srivastava, R.K., 2007. Customer's perception on usage of internet banking.Innovative Marketing,3(4), pp.66-72. Research Question: What the customers or the users of the internet banking are thinking about regarding internet banking? Methodology: The methodology used in this research work was the qualitative research work. Questionnaires were used for collecting the data about the perception of target population. The pilot testing was used for deep understanding of the data collected from the survey questionnaires. In order to identify the target population of the research work, the screening was done before distributing the questionnaires. The screening was conducted to identify the people using the internet facilities. The target sample population of the research work was 665 customers using internet banking. The researchers were able to collect the feed backs of 500 customers among the targeted 665 customers. Findings: The findings of the research study state that even though bank customers are using internet banking, a high percentage of them are not satisfied with the services of internet banking. The main problem behind the dissatisfaction of customers is the lack of trust in internet banking. According to this research report, the customers of internet banking are using the services for some advantages such as time and consistency, but they are not happy with the service charges of the schemes. Critical Analysis: In this research work, the common challenge of internet using has been identified. The challenge is the limited security of online accounts. Most of the respondents of this research report have mentioned that they are not able to fully trust the internet banking services. This happens due to internet hackers. In the past few years, many examples of online account hacking and money stealing have been found. These are also affecting the customers (Kesharwani and Singh Bisht 2012). The people of the present world have become very busy so time is the most important component of their lives. Therefore, the reduced number of transactions through internet banking has become the most important advantage. The customers are using the services for the potential advantages but the banks are charging very high charges for internet banking facilities. This is an important factor for client dissatisfaction in the area of internet banking. It can be said that the internet banking sector can face huge level growth in the near future if the banks will be able to reduce the service charges for the online transactions through internet banking. Internet banking loyalty: evaluating the role of trust, satisfaction, perceived risk and frequency of use Citation: Aldas-Manzano, J., Ruiz-Mafe, C., Sanz-Blas, S. and Lassala-Navarr, C., 2011. Internet banking loyalty: evaluating the role of trust, satisfaction, perceived risk and frequency of use.The Service Industries Journal,31(7), pp.1165-1190. Research Question: What components of the internet banking affect customer loyalty and satisfaction and what are the potential risks of internet banking use? Methodology: Survey method was used in the research work for collecting the data. The research was conducted by gathering feedbacks from 20 customers of internet banking and 20 financial experts who are working in the area of the internet banking. The survey was conducted through the online platform. Online survey questionnaires were developed with some close ended questions. The respondents were able to give their responses by clicking on the radio buttons against the answers to the questions. Same questionnaire was used for collecting the feedbacks of the respondents and after collecting the data, statistical analysis of the data was done in order to find out the outcomes of the research study. Findings: According to the findings of the research study, the main cause of using the services of the internet banking was to avoid the queue at the bank. Through the use of internet banking, the users are able to complete banking related tasks with a click from anywhere at any time. In this research study, the common problem of internet banking was found again. The problem is about security risks. It has been found that due to the high risk regarding safety of online bank accounts, the frequency of using this service is low. As per the data collected from financial experts, the psychology of common people about security issues of internet banking is affecting customer loyalty and satisfaction rate. They are saying that the security risks have been reduced to a lower level at the present time but the people are still in fear of these issues for the psychological trends. Fear of security issues can be decreased by increasing the use of the services. Critical Analysis: The findings of this research study are also indicating the time effectiveness of the internet banking. Conducting the banking operations by going to the branch is too hectic and the time management for these works is also difficult for the busy people of the present world. These are the main reasons behind customer loyalty of the internet banking sector. The same risk is identified in this research paper i.e., about the security issues (Yousafzai and Yani-de-Soriano 2012). The customers are not satisfied by the services of internet banking and the frequency of using the services is hampered due to security issues. The environment is not as the same as before, but is more developed with a much better platform for internet banking use. Even though the banks are using stricter security components for resisting unauthentic transactions or account hacking issues, the customers are still feeling unsafe due to the fear of a less secure platform. This can be avoided with the increased use of internet banking facilities. In the area of success rate of hackers, an important fact is the unawareness about appropriate handling of the online bank accounts. This can be minimized by proper use of online accounts and some safety measures taken from the users end (Zavarehet al. 2012). he determinants of satisfaction with e-banking Citation: Libana-Cabanillas, F., Munoz-Leiva, F. and Rejn-Guardia, F., 2013.The determinants of satisfaction with e-banking.Industrial Management Data Systems,113(5), pp.750-767. Research Question: What is the effective way of providing effective level of customer satisfaction in internet banking sector? Methodology: In order collect the information about the different components of internet banking, the review of the past research works conducted in this area was done. The data were collected from this area of only one bank. Due to the research limitation, the researchers took only one bank as the sample population for this research work. Data were collected by conducting survey among the users of internet banking facilities of the selected bank. The sample size of the population selected for the survey of research work was not very small. The sample population of customers was 946. Among the total population, 634 were male customers and the remaining 314 customers were female customers of the bank, using the internet banking facilities provided by the bank. The survey was conducted in an online manner and the data was analyzed using the tools of statistical analysis. The data analysis has been completed with the help of some hypothesis developed at the initial level of the research work. The hy potheses were compared with the collected data from the review papers. Each of the hypotheses was tested for the validity and for achieving the conclusion of the research study. Findings: As per the findings of the research study, the accessibility of the information from internet banking has increased the ease of use of the service. The accessibility and the usefulness of the e-banking facilities are the reasons for increased trust and satisfaction among customers. According to the hypothesis of the research work, the ease of use, customer satisfaction, usefulness and trust are interconnected. The findings of the research study indicating the hypotheses are true. The research study has identified the fact that the frequent use of internet banking facilities and the advance tools of this banking strategy has given a lot of advantages to customers. The customer satisfaction rate among the customers of the bank taken for the research is very high. The trust and satisfaction rate of the customers are dependent on the perceived risks of using internet banking. Critical Analysis: The advance technical platform of the internet banking is providing high level of advantages to the customers. The same challenge of internet banking has been found again in the research report. The challenge is about the perceived risks of online money transaction. Use of the internet baking has increased to a very high level but the customers are still in the fear of reduced security issues. The customer satisfaction rate is dependent on the amount of the perceived risks of online account handling (Zhu and Chen 2012). The customer satisfaction is also dependent on the management of the bank which is providing the facilities of online banking. The satisfaction rates of customers from all banks are not same. The bank selected for this research work has a high level of customer satisfaction. The risk regarding online money transaction and online account hacking can be minimized by taking positive steps towards management of the bank such as developing more secure network for the internet banking and use of the advanced software for protecting the hacking and viruses (Chiou and Shen 2012). Conclusion: The details of the proposed research model and the key ideas behind the research work have been discussed in this report. The drafts literature review has been developed for finding the different types of use of the internet banking and the potential advantages and disadvantages of this service. Reports of the previous research works have been used for this purpose. The online library facility and Google scholar have been used for finding the previous research report. The literature review has helped a lot to understand the use of internet banking. After completing this literature review, it can be concluded that the most important advantage of the internet banking is the faster access regardless the place and time and the most important challenge is the internet threads and hackers. However, further study of this research work may open some new facts regarding the use of the internet banking. Reference: Akturan, U. and Tezcan, N., 2012. 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