INTERNET BANKING

The Impact of Internet Banking in Retail Banking Industry: A Case Study of Barclays

Table of Contents

Chapter 1: Introduction3

Change in Banking Sector3

External forces3

Internal forces5

Delivery strategies6

The rationale for banks using the Internet7

Customer Demand and Requirements10

Current UK Internet Banking Offerings13

Aim of the Study16

Key Aims16

Research Questions17

Chapter 2: Literature Review18

Influences on the Development of Financial Services Delivery Systems18

Supply Side Considerations18

Demand Side Preferences22

Developments in the Distribution Of Barclays Banking Services24

Home and Telephone Banking29

Conceptual model and hypotheses44

Consumer innovativeness44

Internet/technology self-efficacy and experience47

Type of web/internet use48

Demographic characteristics50

Chapter 3: Research Methodology51

Research methodology51

Data collection51

Operationalization of measures53

Adoption measure53

Consumer innovativeness53

Self-efficacy-related measures55

Utilitarian versus hedonic internet use56

Analysis and results57

Chapter 4: Discussions60

Discussion60

Managerial implications61

Chapter 5: Conclusion64

Limitations and future research65

References67

Appendix85

Chapter 1: Introduction

The time in which we are house is probable the most stimulating time in annals to be modifying financial markets and institutions. The increasing turbulence in the natural natural environment, co-operation, affray and change, globalisation and convergence as well as changing purchaser preferences signify that new designs to apply and maintain purchasers are developing of key importance. One of the most rudimentary alterations in the business has been the purchaser activity from accustomed bureau banking to more stand-alone banking. In other sayings, a advance in the main heading of using electric apparatus consignment routes for demonstration the Internet, telephone and wireless telephones in individual banking.

The time span electric apparatus banking often mentions to online banking/Internet banking. However, electric apparatus banking is an peak gather including more over telephone banking, WAP-banking as well as iNet-television banking. In the present study, we use the time span online banking in aligned with Internet banking omitting other electric apparatus consignment routes, because the Internet is amply glimpsed as the most important consignment conduit in the era. Numerous enquiries suggest that the Internet has become the most well admired electric apparatus consignment stage for electric apparatus banking (see, for demonstration, Karjaluoto et al., 2002).

The emergence of the Internet has had a significant leverage on the diffusion of electric apparatus banking. With the aid of the Internet, banking is no longer compelled to time or geography. Consumers all over the world have rather so clear-cut get get access to to to their anecdotes 24 hours per day, seven days a week. Therefore, Internet banking presents many benefits to both banks and their customers. However, acceptance of this new know-how has not been equal in all constituents of the world.

Forecasts in relation to the development of the Internet community have mostly been very enthusiastic. Nevertheless, past outlooks have endured from over-optimism. Researchers and management have mostly intensified on the development of the Internet and the possibilities it provides. From our topic of expectation, much more vigilance should be conceded to study that assists to appreciate the constituents that motivate purchasers to advance online, and use the Internet for economic and service causes for demonstration buying and banking (see Fram and Grady, 1995).

Since 1996, after the launch of the first Internet based banking service, the number of Internet bankers has evolved at an marvellous pace, and approximately one third of the Finns are using the ...