Customers’ Perspectives of Internet Banking Adoption in Developing Economies

Introduction

Businesses in the developing economies are highly reliant on information technology and communications to compete in the global market. Banks started relying on information technology and communications to penetrate the existing markets and to enter new segments. Globalization has resulted in foreign banks expanding their businesses across the world. The arrival of foreign banks into the Indian market with the latest information technology based services has pressed the Indian banks to follow the latest technologies in banking to counter the threat of competition. The arrival of foreign banks followed by an increase in the number of private banks has resulted in a stiff competition among the banks, to provide the best of the services to the esteemed customers. The Indian banking sector is going through a series of innovations in its operational aspects. With the growing demand for convenience products and services, banks are striving hard to maintain the equilibrium. The economic fluctuations in the markets may result in positive and negative shocks to the banks Nathan et al. (2010). These external shocks for the banks may be inevitable if the business and funding models are faulty Aidan et al. (2008). Fadzlan (2010) empirically finds that foreign banks have higher technical efficiency compared to their domestic bank counterparts. According to Jagdish et al. (2011) organizations have been investing heavily in building information links with their suppliers and buyers to reduce costs and lead times to improve the timely customized delivery of products and services. Banks are trying to differentiate their products and services to gain an advantage over their competitors, by trying to offer services at customer’s home. Even mobiles service providers have a large spectrum of financial service offerings to attract new customers and to also to retain the existing.