INTERNET SECURITY AND ONLINE BANKING SERVICE

The development of Internet security and online banking service in HSBC Bank



Introduction

The Hong Kong and Shanghai Banking Corporation or HSBC is one of the world's largest banks. With its headquarters in London it has branches throughout the world and is often cited as the second or third largest bank in the world. HSBC International is the bank's offshore operations centred on the island of Jersey in the UK. It offers expatriates a full range of banking options including transaction accounts, savings accounts, bonds and a wide selection of investment options (Handy, Charles, 1995, 40-50).

The study investigates how HSBC Online Banking interactivity leads to positive customer outcomes in the context of Internet Banking. Navigation structure and information content constitute the antecedents of internet interactivity whereas the dimension of customer outcomes has been studied through customer service quality; customer satisfaction; perceived security risk and trust of the internet banking. In order to gauge the data for internal consistency, various reliability and validity procedures have been carried out (Chiou, Jyh, Shen and Chung, 2006, 7-22). AMOS software has been used for analysis of the data using Structural Equation Modelling technique. In the context of modern literature on financial intermediation, online banking takes us beyond the traditional focus on bank lending and deposits to include other services as well. Its scope has permitted numerous non-lending bank services to be identified and details to be obtained on the characteristics of firms that maintain multiple versus single banking relationships. The term 'internet banking' was not clearly defined in relevant literature until a few years ago. Since small and medium-sized enterprises (SMEs) depend largely on banks for their external finance, the impact of different aspects of electronic financing is also a topic worth researching (Belanger, France, Hiller, Janine and Smith, 2002, 245-270). The findings indicate that Online banking factors like navigation structure and information content are important antecedents to customer service quality, which further influences customer satisfaction and the trust of Internet Banking security.

Literature Review

This article empirically investigates the patterns, determinants and impact of internet banking and its security regulation in a large cross section of countries (Mols, Niels, 1999, 295-300). Major differences of internet banking regulation across countries are found to be in four dimensions, i.e., the extent of government ownership of banks, the intensity of direct regulation of banks, the amount of measures to empower outside investors to monitor banks and the comprehensiveness of explicit deposit insurance. To mainly prevent a contagious liquidity crisis and maintain stability, or protect small depositors or investors, or enhance efficiency, or for other social purposes, the internet banking sector is tightly secured around the world. There, however, was an epidemic of banking crises in the last two decades of the 20th century and inappropriate banking regulation attracted the most critics (Handy, Charles, 1995, 40-50). There is a large body of research on what kind of internet security is good to provide, an excellent survey in their literature review and they also empirically ...