New Trend of Online and Mobile Banking

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CHAPTER 2: REVIEW OF RELATED LITERATURE1

Online and Mobile Banking1

Online Banking Stimulated by Online Shopping2

Mobile Banking3

Automated Teller Machine (ATM)4

Factors Contributed To Customers Shifting To Online and Mobile Banking4

Online Banking and Perceived Usefulness4

Advantages/Disadvantages of Online Banking vs. Local- Based Banking7

Advantages of Online Banking7

Disadvantages of Online Banking8

Transactions Customers Prefer To Make Online and Local-Based Banking9

Factors Inhibit People Shifting To Online and Mobile Banking10

Security/Risk/ Privacy10

Trust In Technology Access12

Utility14

Factors Contributed To People either Switching or Remaining With Their Exiting Model of Banking15

Tech Savvy People Moving Towards Online Banking15

Generation X and Generation Y- Internet Banking17

Segregation of Internet Banking Users18

Access to Smart Phone19

Habit - Face To Face Human Interaction19

Demographics of the Users20

Ethnicity20

Age21

Education21

Gender21

Driving Strategies of Banks towards Online and Mobile Banking22

Chapter Summary24

REFERENCES25

CHAPTER 2: REVIEW OF RELATED LITERATURE

This chapter of the thesis aims to integrate the previous researches, studies and findings of different researchers in order to justify the research aims, objectives and questions. This chapter will at first give a brief review of the factors that have contributed to customers shifting to online and mobile banking will be identified. Additionally, the factors that have contributed customers not shifting to online and mobile banking will be identified and in the end other explanations that have contributed to customers either remaining or switching with their existing model of banking will be discussed in depth to enhance the understanding. The findings from the literature will be gathered by accessing various public and private libraries to drive appropriate conclusion for the research study.

Online and Mobile Banking

In our daily life technological improvements employ innovations in a rapid speed. Internet technology is one of the innovative products that have emerged from technological improvements. This technological improvement has an expansive usage. At an increasing rate the customer spending via the internet has increased significantly. Hence, the innovation in the internet technology can be used to facilitate development by taking advantage of the transfer of technology and easy access to information. The banking industry has been globally affected by the rapid development of the information technology. The impact of the information technology in the banking sector can be examined in the introduction of online and mobile banking in the recent years. Kleijnen et al (2004) suggested that online and mobile banking is quite facilitating and has made the financial transactions much easier between the customers and their banks.

However, in our society mixed perceptions have been found regarding the usage of online and mobile banking. For some the use of online and mobile banking is useful while Mattila (2003) considered online and mobile banking as a risk to security. Hence, mixed results and perceptions are found as significant factors in the online and mobile banking. Zigi and Cheung (2002) suggested online banking is a form of banking transaction that is carried out over the internet through credit card services and other transaction modes.

Online Banking Stimulated by Online Shopping

Eastlick and Lotz (1999) suggested that the introduction of online shopping sparked the use of credit cards shopping that stimulated the use ...