Definition of E-Banking
“E-banking is defined as the automated delivery of new and traditional banking products and services directly to customers through electronic and interactive communication channels” (FFIEC, 2003). It is the systems which enable individuals or businesses, financial Institution or customers to access accounts, business transactions through a public or private network, including the internet (FFIEC, 2003).
Electronic banking (e-banking), also known as net banking, Cyber banking, banking, Virtual banking, Personal banking, and so many other names. As Information Technology plays an important role in banking and commerce industries. Banking relied on information technology (IT) to acquire, process, and deliver its services to all relevant users. Through E-banking it is possible to do transactions from any part of the world, it provides ease and comfortability to the customers, there is no need of physical presence of any customer in bank, Beside this there are so many issues and challenges regarding e-banking, and the main issue is behavioral issue.
Globally, the potential of e-services by banks or Internet Banking was well recognised a decade ago (Booz & Hamilton, 1997; Deloitte Consulting, 1998; KPMG, 1998; Mols, 1998; Howcroft & Durkin, 2000). More accessible and user friendly use of the technology, as the Internet does not restrict banks to physical locations or historical geographical areas, therefore banks can think in new geographical areas also, about new market areas and scope of products . From new services such as advertising, bill presentment, alerts, and notifications income can be generated. Such activities provided value added services to the customer and different new opportunities to banks for income generation and secure long term customer loyalty, through relationship management (Yiu, Grant and Edgar, 2007).
The age of Google and Wikipedia has ensured that we do most of our activities online. What is absolutely incredible is you can rely for almost everything on the internet. More business than we can ever imagine is done online. The Internet has sparked an IT-based revolution in the financial services sector that has radically altered the way that banking services are delivered. This development, referred to as Internet banking (IB), has enabled busy people to complete their financial activities in a cost-effective and efficient manner at any time of the day, regardless of their physical location (Makris et al., 2009).
According to (Gerrard and Cunningham, 2003) E banking reduces cost of banking in so many other forms such as providing ATM facilities, NEFT etc. also provides complete customer information, that’s why? Banks spend a great deal of money on E-Banking .Also contributes in improvement of quality of services which is necessary to compete in global market (Rouibah et al., 2009). For achieving these objectives, it needs customers to adopt electronic-banking. Thus, main focus of financial services providers Son development of e-banking capabilities and comprehensive understanding of perception of the customers towards this technology. (Lassar et al., 2005). Factors which influence customer adoption of e-banking is their perception and attitude towards use this technology. By identifying these factors and desire of customers, that how much motivated they are to adopt (or not adopt) this new technology top managers of banks can make policies and develop strategies to improve such technology.
Asides to developing and sustaining a market advantage, which leads to supplementary income. Banks are continuously introducing new technology across the value chain, to reduce costs of operations and administration including, management of accounts, administration of statements, disclosures etc. The new technologies are not only contributing to make processes competitive. Also, it boost the customer services online line at reduced cost and customised or personalised, using principles of information and knowledge management resulting
in enhanced efficiency and effectiveness (Humphreys, 2000). While this is clearly a direct benefit there is also the additional benefit of building knowledge about the customer activity, automation of credit checks, and the potential to integrate a range of services, functions, technologies, concepts and even industries’-services by the banks is therefore believed to improve customer satisfaction as it can provide faster, easier, and more reliable services through a single platform, if they access the bank’s web site. Indeed, research by (Deloitte Consulting, 2000) revealed that roughly one-half of consumers would first enquire with their existing banker if they needed a new financial product. It improves bank performance like fulfill customer demands, emphasize new distribution channels increase the goodwill of bank and reduces cost (Currie, 2000; Lam & Burton, 2005). By emergence of new technology in Banking sectors and deregulation of many parts of finance & economic restructuring banks are facing so many challenges which forcing banks to re-evaluate their costs and profit structures to remain competitive, profitable, reduce operating expenses and maintain strict control of costs.
Despite all these efforts, in many developing countries people are still unaware from this technology., As customer perception is most important for providing e-services whether they are ready to adopt these technologies or not and there awareness about the usage of these technologies are also very important (Agarwal, Rastogi &Mehrotra, 2009). The present study proposes to examine developing countries customers’ perception in the context of e-services and different challenges related to this concept & its impact on the revenue and business model of banking system.
This review paper aims to explore the literature on E-Banking adoption and to classify these studies based on their perspectives on banking. The paper will investigate different types of E-Banking adoption studies, including different research perspectives, and the relationships among them. Finally, the paper will aim to offer suggestions for future research. The paper is organized as follows. The research method is described in next section, and then we introduce the review of research on E-Banking technology and clarify the different adoption perspectives in the online banking adoption literature.
The paper then presents the results of the classification and, on the basis of the analysis undertaken. The paper concludes by highlighting weaknesses and gaps in the E-Banking adoption literature that could be addressed by future research. Systematic reviews represent an important milestone in the development of a research field. They provide an opportunity to step back and review the collective intelligence that has amassed from an often eclectic body of literature using different samples, methods and theories. This is important as the findings of isolated studies are frequently contradicted by subsequent studies (Ioannidis, 2005). Under even the most rigorous research conditions, a well-planned single study rarely provides definitive results. Systematic reviews that carefully categorize and pool findings can lead to valuable insights and clear research directions. This paper, therefore, seeks to contribute to our understanding of banking technologies by undertaking a systematic review of e-banking adoption.