Article

A Study on Customer Perception Towards Internet Banking: Identifying Major Contributing Factors

Journal of Nepalese Business Studies 11/2008; 5(1):101-111. DOI: 10.3126/jnbs.v5i1.2088

ABSTRACT

Internet banking is becoming is increasingly becoming popular because of convenience and flexibility. The present paper explores the major factors responsible for internet banking based on respondents’ perception on various internet applications. It also provides a framework of the factors which are taken to assess the internet banking perception.

Key words: Internet banking, online, Bank, perception, e-banking

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Available from: Divya Singhal, Dec 13, 2013
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    • "Among the various authors who have recently focused their investigation on customer perception on products and services include: Manzoor and Amanaullah (2010), Ismail et al. (2008), Echchabi and Abdul-Aziz (2012), Haque (2004), Rashid et al. (2012), Dusuki and Abdullah (2006). Singhal and Padhmanabhan (2008) found that utility request, security, utility transaction, ticket booking and fund transfer are major factors that customer perceived valuable to subscribe to Internet banking services. However, Ismail et al.'s (2008) study revealed that consumers were not ready to sacrifice the basic attributes of products and services. "
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    ABSTRACT: Purpose ‐ The purpose of this study is to determine the level of perception of a Muslim account holder in a conventional bank toward Islamic banking products and to determine the relationship between the perception levels of Nigerian's account holder's and their decision to patronize Islamic banking. Personal perception factor is operationalized as opinion or observations, which are able to influence customer's decision to patronize Islamic banking products and services. Design/methodology/approach ‐ A field survey was conducted and samples drawn using proportionate stratified simple random sampling techniques. Out of the 500 questionnaires distributed by hand, only 304 were returned and 286 were usable for the data analysis using SPSS and PLS Modeling Software. Findings ‐ First, the means for personal perception variable was 4.91 with standard deviation of 1.007. This indicates the good perception level of Islamic products by Muslim account holders in a conventional bank in Kano, Nigeria. The respondents' level of decision to patronize the Islamic banking products and services was satisfactory. Second, the results also showed that the research framework model, structural model and hypothesis were supported. In the measurement model, the convergent, discriminant validity and reliability/composite reliability of the perception construct were assessed favorably. The results revealed that perception was positively associated with a Muslim account holder's decision to patronize Islamic banking products. Research limitations/implications ‐ The study is subject to several shortcomings that limit interpretation of findings. One of the limitations of this study is the use of cross-sectional design for survey research and subjective self-reported perceptual measures in assessing the studies. Hence, the findings of this study cannot be generalized in a larger context across the cultures of other countries. Practical implications ‐ The implication of this study is for the Islamic banking industry to focus on the people's level of perception, government support, quality and availability of Islamic banking products and services that would have an impact on customer decision to patronize Islamic banking products. The necessary suggestions on new area of research were recommended for future researchers. Social implications ‐ Islamic banks have the potential to exploit and market to various segments of customers extending beyond those who are concerned with the legitimacy of the facility from the Islamic point of view and those who seek service quality, convenience and efficient transactions. To the practitioners in search of patronage of Islamic banking products and services, patronage studies on Islamic banking have so far largely focused on the combination of various religious, reputation, commercial, service satisfaction, staff, confidentiality and convenience factors. Originality/value ‐ The results of the present study establish the major problem that requires urgent attention needed to strengthen public education toward the distinctive characteristics of Islamic banks and how it may profitably suit the interest of customers in their financial dealings.
    Full-text · Article · Aug 2014 · International Journal of Islamic and Middle Eastern Finance and Management
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    • "Among the various authors who have recently focused their investigation on customer perception on products and services include: Manzoor and Amanaullah (2010), Ismail et al. (2008), Echchabi and Abdul-Aziz (2012), Haque (2004), Rashid et al. (2012), Dusuki and Abdullah (2006). Singhal and Padhmanabhan (2008) found that utility request, security, utility transaction, ticket booking and fund transfer are major factors that customer perceived valuable to subscribe to Internet banking services. However, Ismail et al.'s (2008) study revealed that consumers were not ready to sacrifice the basic attributes of products and services. "
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    ABSTRACT: This study investigates the relationship of Perception, Awareness and Understanding of Muslim’s account holder’s in conventional bank leading decision to patronize Islamic bank products. Perception is operationally defined as the opinion, observation, assessment or experience while, Awareness is viewed as the consciousness, recognition or familiarity. Understanding is referred as the comprehension, grasp or appreciation of Muslim’s account holder. A research framework model and hypotheses concerning the relationships among the variables – Perception, Awareness, and Understanding of Muslim’s Account holder’s in conventional bank towards Islamic banking products were posited and tested. Data was collected using hand delivery questionnaire survey approach. Using simple random sampling procedure, three hundred and four (304) respondents both male and female were selected to participate in this study. Factor analysis, Pearson correlation, multiple regression methods of data analysis were utilized for hypotheses testing. The results of the correlation revealed that Perception, Awareness and Understanding are positively associated with Muslim account holders in conventional banks toward Islamic banking products. The multiple regression results indicate that Understanding and Awareness factors jointly explained 27.1% of the variance of Muslim account holder’s in conventional bank toward patronising Islamic bank products. The outcome of this study provides vital information on the impact of Awareness and Understanding of Muslim account holder’s in conventional bank on decision toward patronage of Islamic banking products. The managerial implication of this study is for the Islamic banking industry to focus on the people’s understanding of Shariah position on business transactions, concept of profit and loss sharing practice, benefit of Islamic banking products, good understanding of Islamic banking theory and practice that would have impact on customer decision.
    Full-text · Thesis · Jun 2011
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    ABSTRACT: Advancement in technology has played an important role in the distribution strategy of commercial banks. Banks distribute their products and services not only through a sole channel but instead through a variety of channels such as internet banking, automated teller machines, mobile banking, phone banking, TV baking etc. Internet banking has attracted the considerable amount of interest of researchers in the recent times. Previously research studies had concentrated on the perception about online service quality, adoption of internet banking, impact of information technology in banking, etc. based on customers’ opinion. However, on the other side, in depth analysis of bank’s online portal without approaching the customers may also provide meaningful insight about the online portals especially when compared with other banks’ online portals. The present study aims to compare the pre-login and after login features of selected banks’ online portals. For study purpose, two leading banks, one each from public and private sector were selected. A content analysis technique was used to study the listed features of selected websites. Study found that selected banks’ online portals differ on various features such as accounts information, fund transfer, online requests and general information. In the end, study suggested to include the good feature of other online portal which would help them to make their sites more secure, informative and user friendly.
    Preview · Article · Apr 2012 · Journal of Internet Banking and Commerce
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