An Investigation into the Determinant of Customers' Preferences and Satisfaction of Internet Banking

by

ACKNOWLEDGEMENT

I would first like to express my gratitude for my research supervisor, colleagues, 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.

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ABSTRACT

In this study we try to provide an overview of internet banking. This research will provide information about the various aspects of internet banking, advantages, disadvantages and how internet banking is different from traditional banking. Introduction of internet banking channel is most likely same as that of the introduction of ATMs some years before. Internet banking offers many types of services to customers in a convenient way, therefore, has a possible prospective to change or convert banks usual delivery channels. In future, such traditional branch banking would not get abolished, but they would provide services very differently than they do today. Most of the banks would improve present trend of opening branches in new places and location with collaborators like, supermarkets, or improve the branches to promote electronic channels. The research will be following the survey questionnaires for the collection of data from the bank customers and bank managers. The main focus of this study will be to investigate the determinants of customers' preferences and satisfaction of Internet Banking.

Table of Contents

CHAPTER 1: INTRODUCTION1

Background of the study1

Rationale1

Research Aim & Objective2

Research Question2

Significance of the study2

CHAPTER 2: LITERATURE REVIEW3

Internet Banking Concept5

Definition of Internet Banking5

Description of services6

Advantages and disadvantages of Internet Banking6

Internet banking and traditional banking8

How Internet banking works?10

Economics of Internet Banking12

Customer preferences and Satisfaction of Internet Banking Services13

Service Quality in Internet Banking17

CHAPTER 3: METHODOLOGY18

Conceptual Framework18

Research Question 119

Hypothesis 119

Research Question 219

Hypothesis 219

Research Question 319

Hypothesis 319

Research methodology20

Research Design20

Instrument for data collection21

Pros and cons of chosen methodology22

Pros22

Cons22

Reliability/Dependability23

Validity24

Ethical Considerations26

Time Scale27

REFERENCES29

APPENDIX35

Questionnaire for Customers35

Questionnaire for Managers36

CHAPTER 1: INTRODUCTION

Background of the study

Internet banking can be defined set of technology tools such as offering banks to conduct business through your Internet connection. This service has a wide range of applications, as operations such as opening of accounts, balance inquiries transaction, funds transfer, and payments, among others. The main advantages for the use of this customer service are the convenience of having access to your bank 24 hours a day, versatility, since a single channel can provide multiple services, and as their own infrastructure breaks down the geographical barriers, enabling the client to contact your bank, regardless of where.

Also counterpart, there are disadvantages of it, as the issue of security in the Internet, the speed or connection problems, especially the difficulty of adapting traditional customer to the electronic medium. (Heffernan 2008, pp 39) Internet banking has generated an unprecedented growth globally. The primary reason is undoubtedly, the comfort. Use of online banking saves time and ...