The Impact of Trust on Acceptance of Online Banking

Major benefits of Online Banking include for banks cost savings, and for customers convenience. Nevertheless, many people perceive Internet banking as risky. This paper introduces a tentative conceptual framework. Trust will be integrated into the Technology Acceptance Model – TAM - (Davis, 1989). Recent research showed that Trust has a striking influence on user willingness to engage in online exchanges of money and personal sensitive information. Detailed literature about Online Banking and Trust is provided. TAM is discussed in depth; external variables that are suitable for the Online Banking context is suggested. In addition the theoretical justification for the conceptual framework integration is discussed. Finally managerial implications and recommendations for Online Banking acceptance are suggested

Factors influencing online banking adoption: the case of academicians in Malaysian technical University network (MTUN)

Advancement of technology saw the evolution of how banking activities being conducted. Online banking for example, has created new approach of banking activities around the globe. This study was conducted to investigate and determine factors influencing online banking adoption among academicians in Malaysia. The selection of factors was developed based on extended Technology Acceptance Model (TAM). TAM is the most widely applied model in the field of technology adoption. TAM investigates the adoption of technology based on its Perceived Usefulness and Perceived Ease of Use. Government support was included as an extension of the original model mainly because of its direct influence on the existence of the online banking itself. These factors were categorized as the independent variables in this study while online banking adoption as the dependent variable. Data for this research were collected from survey questionnaires, distributed to the target population of academicians at four higher education institutions listed under Malaysian Technical University Network (MTUN) in Malaysia. Data collected were analyzed using Statistical Package for Social Science (SPSS) software. Correlation and regression technique was employed to study factors influencing online banking adoption among respondents, Results of the analysis shows that Perceived Usefulness and Perceived Ease of Use found to be significant factors while Government Support is found to be not a significant factor in influencing the adoption of online banking among the respondents. This study has shed new knowledge for the research in the area of technology adoption particularly in Malaysia

Online banking customization via tag-based interaction

In this paper, we describe ongoing work on online banking customization with a particular focus on interaction. The scope of the study is confined to the Australian banking context where the lack of customization is evident. This paper puts forward the notion of using tags to facilitate personalized interactions in online banking. We argue that tags can afford simple and intuitive interactions unique to every individual in both online and mobile environments. Firstly, through a review of related literature, we frame our work in the customization domain. Secondly, we define a range of taggable resources in online banking. Thirdly, we describe our preliminary prototype implementation with respect to interaction customization types. Lastly, we conclude with a discussion on future work

Strategic online-banking adoption

In this paper we study the determinants of banks’ decision to adopt a transactional website for their customers. Using a panel of commercial banks in the United States for the period 2003-2005, we show that although bank-specific characteristics are important determinants of banks’ adoption decision, competition plays a prominent role. The extent of competition is related to the geographical overlap of banks in different markets and their relative market share in terms of deposits. In more competitive markets banks are more likely to adopt earlier. Even more importantly, banks adopt earlier in markets where their competitors have already adopted.Internet banking

Does Internet Banking Affect the Performance of Community Banks?

This study examines the impact of online banking on bank performance. Results show that online banking improves bank earnings as well as helps in improving asset quality.Research and Development/Tech Change/Emerging Technologies,

Consumer Adoption of Online Banking: Does Distance Matter?

This paper tests whether consumer adoption of online banking is affected by the distance to one's bank branch. During the last decade, rapid diffusion of the Internet has dramatically changed the ways consumers conduct every-day businesses. An important trend in the rapid increase of Internet use among U.S. households is the use of the Internet for accessing financial accounts and paying bills. I estimate a logit model for online banking use with household level data from the U.S. for 1998 and 2001. In order to correct for the possible endogeneity of distance to one's bank, I use instrumental variables in a logit framework by following the control function approach suggested by Petrin and Train (2002). I find that distance to the closest bank branch does not affect the likelihood of online banking use by a household. The type of financial account that one has with her financial institution, however, is a significant predictor of online banking use, implying that households are likely to use the online provision more for some accounts than others. The results suggest that online channels may be viewed as a supplement to other more traditional channels. I also find that the impacts of various individual and bank-specific characteristics on online banking use have changed from 1998 to 2001. This is not surprising given the rapid diffusion of the Internet in the late 1990s, and the corresponding rise in the availability, acceptance and familiarity of the Internet as an additional business channel.

THE PROS AND CONS OF INTERNET BANKING: A SHORT REVIEW

Bank fees often strike fear in the heart of the average banking customer. According to a survey by Bank-rate, a company that reports on banks and banking, customers continue to get smashed with higher fees, ranging from ATM charges to minimum-balance fees. In addition, some customers are even charged a commission fee just to speak to a real live bank teller! In a recent checking account pricing study, it was found that interest-bearing checking account customers charged the worst. The average interest charging checking account earns only 0.27 percent interest while account holders pay $10.86 on average in monthly fees. This review in internet banking seeks to show an alternative to banking through “bricks and mortar” and provide an understanding of the pros and cons of going online. Many traditional banks offer some online services, but the very cheapest choices some will find are internet-only banks, which operate specifically online. Customers can get the same services online that are used to from traditional banks, such as checking and savings accounts, CDs, and other financial products and services. Those who are interested in paying lower fees for better customer service, they should investigate internet banking.Internet banking, E-commerce, Financial engineering, Online economic review

The Bulgarian Banks' competitiveness: the case of Remote banking

The new information technologies adoption and e-commerce emergence change the role of financial intermediaries in new E-conomy. During the last years, the banks have started an expansion to the web – they offer broad range of traditional bank products and services via Internet. The remote banking becomes one of the main channels for bank services distribution. This paper presents results from a research, which aims to describe actual picture of remote banking products and services offered by Bulgarian banks. They are estimated in accordance with the criteria as: web site availability; information for bank products and services available via Internet; online application forms; online banking application; other online/remote services. In spite of the small number of Bulgarian banks, which offer their products and services via Internet, the research shows that Bulgarian banks as a whole are presented in Internet, as well as indicates that banks estimate the potential and competitive advantages of the new medium.Banks, Internet, Online services, Remote banking, E-commerce, Bulgaria