INTERNET AND TRADITIONAL BANKING

Factors Influencing Internet Banking over Traditional Banking



ACKNOWLEDGEMENT

I would first like to express my gratitude for my research supervisor, colleagues, and peers and family whose immense and constant support has been a source of continuous guidance and inspiration.

DECLARATION

I [type your full first names & surname here], declare that the following dissertation/thesis and its entire content has been an individual, unaided effort and has not been submitted or published before. Furthermore, it reflects my opinion and take on the topic and is does not represent the opinion of the University.

TABLE OF CONTENT

ACKNOWLEDGEMENT2

DECLARATION3

CHAPTER 1: INTRODUCTION8

1.1 Overview8

1.2 Background of the research9

1.3 Motivation of the research13

1.4 Problem definition14

1.5Structure of the research15

CHAPTER 2: LITERATURE REVIEW17

2.1 Introduction17

2.1.1 Internet usage in United Kingdom17

2.1.2 Banking industry in United Kingdom19

2.1.3 Internet banking in United Kingdom21

2.2 Internal Factors23

2.2.1 Competition23

2.2.2 Cost reduction27

2.2.3 Communication and marketing characteristics29

2.3 External Factors34

2.3.1 Customers attitude and behavior34

2.3.2 Application of new information technology40

2.4 Summary44

CHAPTER 3: RESEARCH MODEL AND HYPOTHESIS45

3.1 Introduction45

3.2 Development of hypothesis for internal factors:45

3.2.1 Competition47

3.2.2 Cost reduction48

3.2.3 Communication and marketing characteristics49

3.3 Development of hypothesis for external factors50

3.3.1. Awareness52

3.3.2 Ease53

3.3.3 Time Saving54

3.3.4 Trust55

3.3.5 Safety and security55

3.3.6 Reasonable price56

3.3.7 Accepting change from traditional banking57

3.3.8 New technology57

3.3.9 Access58

3.3.10 Prior experience59

3.4 Summary60

CHAPTER 4: METHODOLOGY61

4.1 Introduction61

4.2 Research purpose61

a) Exploratory research:62

b) Descriptive research:62

c) Explanatory research:63

4.3 Research approach64

4.3.1 Quantitative and Qualitative research approach64

4.3.2 Inductive and Deductive research approach65

4.4 Research strategy66

4.5 Sampling68

4.6 Questionnaire69

4.7 Data collection70

4.8 Quality Standards: Reliability, Validity and Generalization71

4.8.1 Reliability72

4.8.2 Validity73

4.8.3 Generalization74

4.9 Strengths and Weaknesses of this method74

CHAPTER 5: SECONDARY DATA FOR INTERNAL FACTORS76

5.1 Introduction76

5.2 Explanation to hypothesis 176

5.3 Explanation to hypothesis 279

5.4 Explanation to hypothesis 381

5.5 Summary84

CHAPTER 6: PRIMARY DATA ANALYSIS FOR EXTERNAL FACTORS85

6.1 Introduction85

6.2 Data analysis method85

6.3 Demographics and descriptive statistics87

6.4 Data analysis and explanation to hypothesis88

6.4.1 Test of hypothesis 488

6.4.2 Test of hypothesis 589

6.4.3 Test of hypothesis 691

6.4.4 Test of hypothesis 792

6.4.5 Test of hypothesis 894

6.4.6 Test of hypothesis 996

6.4.7 Test of hypothesis 1097

6.4.8 Test of hypothesis 1199

6.4.9 Test of hypothesis 12100

6.4.10 Test of hypothesis 13101

6.5 Results and summary of hypotheses103

CHAPTER 7: DISCUSSION AND CONCLUSION109

7.1 Introduction109

7.2 Discussion109

7.2.1 Internet banking adoption - Push strategy110

7.2.2 Internet banking adoption - Pull strategy111

7.3 Contribution of the research116

7.4 Conclusion117

7.5 Limitations of the Research117

7.6 Suggestions for Further Research118

References119

LIST OF TABLES

Table 1: Factors explanation and previous supporting research studies for the internal factors.44

Table 2: Factors explanation and previous supporting research studies for the external factors48

Table 3: Explanation to different research strategies65

Table 4: Questionnaire questions for hypothesis testing68

Table 5: Comparison between delivery channels and cost per transaction78

Table 6: Estimated transaction costs in the US and the UK78

Table 7: Strength of relationship based on Pearson correlation84

Table 8: Demographic characteristics85

Table 9: Proportion of usage of different services provided by banks on internet86

Table 10: Change from TB to IB - E Correlation, Mean and Standard Deviation88

Table 11: Change from TB to IB - TSF Correlation, Mean and Standard Deviation90

Table 12: Change from TB to IB - T Correlation, Mean and Standard Deviation91

Table 13: Change from TB to IB - RP Correlation, Mean and Standard Deviation94

Table 14: Change from TB to IB - CNT Correlation, Mean ...