and purchase was not based on TAM; instead its conceptual underpinning was derived from
Klein’s (1998) Interaction Model of pre-purchase information search and the Theory of Planned
Behavior (Ajzen, 1991) (see Shim et al., 2001 and their Online Pre purchase Intentions Model).
A further study that accommodates the stages of the buying decision making process is the
Extended Web Assessment Model, an evaluation tool designed for the assessment of e-
commerce applications by Schubert (2002/3), who modified TAM to examine consumer
perspectives of websites across the three classic transaction phases of electronic markets (i.e.
information phase, agreement phase and settlement phase), followed by the after-sales phase Our
definition of extent of use represents a continuum that integrates those transaction phases and
in addition accounts for the variety of FS purchases over the Internet.
A recent literature review generally relating to the adoption of technology-based channels of
distribution by Hewer and Howcroft (1999) notes the importance of factors such as convenience
and ease of use to adopters (e.g. Moutinho and Meidan, 1989; Rugimbana, 1995; Marr and
Prendergast, 1993; Lockett and Littler, 1997). Conversely, reasons for non-adoption have
included preference for dealing with a real person (Zeithaml and Gilly, 1987), concerns about
safety and risk (Lewis, 1991) and complexity (Leblanc, 1990). More recently, studies
specifically relating to the Internet (Black et al., 2001; Bradley and Stewart, 2002; Kerem, 2004)
and the adoption of mobile banking (Kleijnen, et al., 2003; Suoranta, 2003) have highlighted the
significance attached to attributes such as convenience, flexibility and accessibility.
CHARACTERSICS-:
□ Customer must go through a series of security steps in order to log on. Such as PIN number,
password, position of random characters in a phrase, maybe a random number entry from
hand-held card and so on.
□ Customers can see details of their accounts online.
□ Customers can select an account and see the cash balance of each of their accounts and the
available money on each account.
□ Can select account they want and transfer money between their accounts or to another
person / business.
□ Can view their direct debit.
□ Can set up standing orders.
Can view historical statements by week/month for the previous six months.
□ Make one-off payments or transfers.
□ Will automatically log customer out if no action for a short period of time.
□ Message facility to communicate with bank about account or security issues. Response
usually from bank within 24 hours.
ADVANTAGES-:
1. Convenience: Banks that offer internet banking are open for business transactions anywhere a
client might be as long as there is internet connection. Apart from periods of website
maintenance, services are available 24 hours a day and 365 days round the year. In a scenario
where internet connection is unavailable, customer services are provided round the clock via
telephone.
2. Low cost banking service: E-banking helps in reducing the operational costs of banking
services. Better quality services can be ensured at low cost.
3. Higher interest rate: Lower operating cost results in higher interest rates on savings and
lower rates on mortgages and loans offers from the banks. Some banks offer high yield
certificate of deposits and don’t penalize withdrawals on certificate of deposits, opening of
accounts without minimum deposits and no minimum balance.
4. Transfer services: Online banking allows automatic funding of accounts from long
established bank accounts via electronic funds transfers.
5. Ease of monitoring: A client can monitor his/her spending via a virtual wallet through certain
banks and applications and enable payments.
6. Ease of transaction: The speed of transaction is faster relative to use of ATM’s or customary
banking.
7. Discounts: The credit cards and debit cards enables the Customers to obtain discounts from
retail outlets.
8. Quality service: E-Banking helps the bank to provide efficient, economic and quality service
to the customers. It helps the bank to create new customer and retaining the old ones
successfully.
9. Any time cash facility: The customer can obtain funds at any time from ATM machines
DISADVANTAGES
Technology and Service Interruptions
Anytime we use computers or internet service, we are at the mercy of the system's stability and efficiency.
Your ability to access accounts online will naturally be affected if your internet service is running slowly or
completely out for a period of time. Similarly, if the bank's servers go down or are temporarily unavailable due
to scheduled site maintenance, you won't be able to gain online or mobile access to your banking information.
1] Security and Identity Theft Concerns
In general, online banking sites and mobile apps are designed to be secure and banks are continually putting
updated security protocols in place. However, no system is completely foolproof and accounts can be hacked,
resulting in identity theft via stolen login credentials. So while you can use mobile or online banking with
general confidence, be careful to avoid using networks that are not secure and be careful to change passwords
and protect your login information.
2] Limitations on Deposits
Daily or monthly mobile deposit limitations may make it difficult for individuals, but especially businesses to
make large deposits online. Once you have reached your designated limit, you'll need to trek to a branch to
deposit money. Also, not all types of checks are easily read by computer scanning software. For example,
business checks that are handwritten and have a black line on the reverse side to make a carbon record in an
account register may be kicked out of the online deposit system, requiring an on-site deposit.
3] Convenient but Not Always Faster
While it may take very little time to deposit a check via a bank's mobile app, you still need to wait for access to
your money. Online banking provides convenience in terms of the amount of time saved in travel or waiting in
line at a branch location, but all deposits are reviewed and funds are released for access according to bank
policy, which may take up to three business days depending on the amount deposited.
4] Lack of Personal Banker Relationship
For the most part you may be able to handle your general banking needs by yourself. Yet when problems arise
if you don't have a personal relationship with a banker, it might be more difficult to get your issues resolved.
While online banking sites have customer service departments, you often need to work your way through a
phone tree and wait on hold before speaking with someone who has no knowledge of your needs or banking
history. In contrast, a local banker is motivated to serve their customers and strengthen their personal
relationships.
5] A Limited Scope of Services
Although you can do quite a bit with an online bank account, such as make deposits, check balances and pay
bills, there are limitations to the kinds of services you can access. You may be able to make an initial
application for opening a new account or applying for a loan or mortgage, but in most cases you will need to
visit a branch to sign forms and show identity documentation. Similarly, even though you can transfer money
to a checking account or debit card in order to make purchases, if you need cash, you'll have to visit a branch
office or a nearby ATM.
6] Potential to Overspend
The ability to check account balances in the spur of the moment could potentially cause some people to
overspend the limits of their checking accounts. Without a careful look at your checkbook or record of unclear
debit transactions, the account balance may not accurately reflect the true amount you have available.
Overdrafts and fees might occur if you don't keep close tabs on all your transactions.
