Impact of Internet Banking on Customer Behavior
Added on 2023-01-10
58 Pages20769 Words2 Views
Auto. banking and its impact on
cust. behaviour
A recent commercial phenomenon has been the growth in the use of the
internet in all business activities, particularly for financial services industries.
Internet technologies have essentially changed the way in which banks provide
their services and cust. conduct their banking needs. One of these technologies,
which has increasingly become a favoured distribution channel by service
providers and cust. alike, is internet banking services (Haque, 2009). Internet
banking is defined as ‘the use of the internet as a remote delivery channel for
banking services and internet banking is defined as a bank that offers (web-
based) transactional services’ (Gopalakrishnan et al., 2003: p. 413). Internet
banking as a banking channel allows cust. to conduct all traditional banking
services, such as making online bill payments, balance enquiry and fund transfer
to other accounts without visiting their bank branch. Internet banking research
points out that banks which do not offer internet banking services are expected
to lose more than 10% of their cust. over the next five years because their
competitive advantages in banking service delivery will erode (Tower Group,
2005). By
Automised banking and its impact
on customer behaviour
cust. behaviour
A recent commercial phenomenon has been the growth in the use of the
internet in all business activities, particularly for financial services industries.
Internet technologies have essentially changed the way in which banks provide
their services and cust. conduct their banking needs. One of these technologies,
which has increasingly become a favoured distribution channel by service
providers and cust. alike, is internet banking services (Haque, 2009). Internet
banking is defined as ‘the use of the internet as a remote delivery channel for
banking services and internet banking is defined as a bank that offers (web-
based) transactional services’ (Gopalakrishnan et al., 2003: p. 413). Internet
banking as a banking channel allows cust. to conduct all traditional banking
services, such as making online bill payments, balance enquiry and fund transfer
to other accounts without visiting their bank branch. Internet banking research
points out that banks which do not offer internet banking services are expected
to lose more than 10% of their cust. over the next five years because their
competitive advantages in banking service delivery will erode (Tower Group,
2005). By
Automised banking and its impact
on customer behaviour
Abbreviations...................................................................................................................................3
Topic- To explore recognition in relation to the area of auto. banking and its impact on cust.
behaviour. A case study on online banking sector of United Kingdom..........................................4
Chapter 1: Introduction ...................................................................................................................4
1. Research Aim.....................................................................................................................5
2. Research Objectives...........................................................................................................5
3. Research Questions............................................................................................................6
4. Motivation for study...........................................................................................................6
5. Research Rationale.............................................................................................................6
6. Research Scope...................................................................................................................7
7. Brief research methodology...............................................................................................7
8. Chapter Conclusion............................................................................................................8
Chapter 2: Literature Review...........................................................................................................8
Conceptual framework regarding auto. banking....................................................................8
Significance of auto. tech. in encouraging development of banking sector.........................10
Impact of auto. banking over embracing the consumer's behaviour within United Kingdom13
Challenges faced by banking sector of United kingdom while adopting auto. technology. 16
Potential ways that can be opt by banking sector of United Kingdom to facilitate effective
services to the cust................................................................................................................19
CHAPTER 3: RESEARCH METHODOLOGY...........................................................................22
Analysis and findings ....................................................................................................................32
Chapter 5........................................................................................................................................51
Conclusion and recommendations.................................................................................................51
Reflection.............................................................................................................................51
Results..................................................................................................................................51
Conclusion............................................................................................................................52
Recommendations................................................................................................................53
REFERENCES..............................................................................................................................55
Topic- To explore recognition in relation to the area of auto. banking and its impact on cust.
behaviour. A case study on online banking sector of United Kingdom..........................................4
Chapter 1: Introduction ...................................................................................................................4
1. Research Aim.....................................................................................................................5
2. Research Objectives...........................................................................................................5
3. Research Questions............................................................................................................6
4. Motivation for study...........................................................................................................6
5. Research Rationale.............................................................................................................6
6. Research Scope...................................................................................................................7
7. Brief research methodology...............................................................................................7
8. Chapter Conclusion............................................................................................................8
Chapter 2: Literature Review...........................................................................................................8
Conceptual framework regarding auto. banking....................................................................8
Significance of auto. tech. in encouraging development of banking sector.........................10
Impact of auto. banking over embracing the consumer's behaviour within United Kingdom13
Challenges faced by banking sector of United kingdom while adopting auto. technology. 16
Potential ways that can be opt by banking sector of United Kingdom to facilitate effective
services to the cust................................................................................................................19
CHAPTER 3: RESEARCH METHODOLOGY...........................................................................22
Analysis and findings ....................................................................................................................32
Chapter 5........................................................................................................................................51
Conclusion and recommendations.................................................................................................51
Reflection.............................................................................................................................51
Results..................................................................................................................................51
Conclusion............................................................................................................................52
Recommendations................................................................................................................53
REFERENCES..............................................................................................................................55
Abbreviations
1. Co. – company
2. Neg. – negative
3. Posi. – positive
4. Cust. – customer
5. Auto. – automatised
6. Org. – organisational
7. Tech. – technology
8. Digi. – digital
1. Co. – company
2. Neg. – negative
3. Posi. – positive
4. Cust. – customer
5. Auto. – automatised
6. Org. – organisational
7. Tech. – technology
8. Digi. – digital
Topic- To explore recognition in relation to the area of auto. banking and its
impact on cust. behaviour. A case study on online banking sector of United
Kingdom.
Chapter 1: Introduction
In today's commercial environment, use of internet has increased among different sectors
where banking is one of it. In other words, internet technologies has altered approximately all the
ways of conducting business in banks as they have started offering their clients with different
with online services. These online technologies has enabled account holders of different banks to
perform financial transactions from their smart phones, laptops, tablets, personal computers and
so on. It has been analysed that online banking (auto. banking) has effectively advanced, itself
which progressively become a supported channel that helps banks to stay connected with their
clients considering auto. banking administrations. This has impacted in both neg. and positive
manner on consumer behaviour where benefits were like client's can transfer monitory with the
help of official online website and bank applications as well. On the other hand, the neg. aspect
was rising numbers of cyber attack and so on, which resulted into neg. creation of consumer
behaviour and so on.
This dissertation will be focusing on the specific customer behaviour change i.e.
transactional habits (management of client's own money and transferring them (security related
concerns)) and the major reason behind this particular change was the outbreak of Corona Virus.
Automatized banking is characterized as 'the utilization of web as a remote conveyance channel
for banking administrations and auto. banking is characterized as a bank that offers (online)
value-based administrations'. auto. banking as a financial channel permits clients to direct all
conventional financial administrations, for example, making on the web charge instalments,
balance enquiry and store move to different records without visiting their bank office. Auto.
banking research calls attention to that banks which don't offer online financial banking
administrations are required to lose over 10 percent of their clients throughout the following five
years on the grounds that their upper hands in banking administration conveyance will dissolve.
It has been found that pandemic COVID-19 has changed the behaviour of customers to start
performing all the transactions through online channels, which has helped them in following the
guidelines formulated by Government of United Kingdom in relation with lock down in order to
impact on cust. behaviour. A case study on online banking sector of United
Kingdom.
Chapter 1: Introduction
In today's commercial environment, use of internet has increased among different sectors
where banking is one of it. In other words, internet technologies has altered approximately all the
ways of conducting business in banks as they have started offering their clients with different
with online services. These online technologies has enabled account holders of different banks to
perform financial transactions from their smart phones, laptops, tablets, personal computers and
so on. It has been analysed that online banking (auto. banking) has effectively advanced, itself
which progressively become a supported channel that helps banks to stay connected with their
clients considering auto. banking administrations. This has impacted in both neg. and positive
manner on consumer behaviour where benefits were like client's can transfer monitory with the
help of official online website and bank applications as well. On the other hand, the neg. aspect
was rising numbers of cyber attack and so on, which resulted into neg. creation of consumer
behaviour and so on.
This dissertation will be focusing on the specific customer behaviour change i.e.
transactional habits (management of client's own money and transferring them (security related
concerns)) and the major reason behind this particular change was the outbreak of Corona Virus.
Automatized banking is characterized as 'the utilization of web as a remote conveyance channel
for banking administrations and auto. banking is characterized as a bank that offers (online)
value-based administrations'. auto. banking as a financial channel permits clients to direct all
conventional financial administrations, for example, making on the web charge instalments,
balance enquiry and store move to different records without visiting their bank office. Auto.
banking research calls attention to that banks which don't offer online financial banking
administrations are required to lose over 10 percent of their clients throughout the following five
years on the grounds that their upper hands in banking administration conveyance will dissolve.
It has been found that pandemic COVID-19 has changed the behaviour of customers to start
performing all the transactions through online channels, which has helped them in following the
guidelines formulated by Government of United Kingdom in relation with lock down in order to
break the chain of continuous spread of virus. But, this also raised cyber security related
concerns because continuous use of e-banking (auto. banking) may lead an individual to become
a prey to cybercrime.
Background of the research:
Auto. banking services is considered to be an elective conveyance channel, which has
been adopted by most of the banks of United Kingdom. Basically, banks try to bring down
working expenses by decreasing their branch systems and scaling back the quantity of
administration staff, improve their financial administrations and consumer loyalty and hold their
current clients. auto. banking is considered as the least expensive dissemination channel for
normalized bank tasks. As per Stentoft and Rajkumar, (2020), average payment transaction from
online banking facilities specifically costs £0.0080 (Pound Sterling) as contrasted and £0.016 for
a Personal Computer banking administration, £0.022 for an Automated Teller Machine, £0.43 for
a phone banking administration and £0.86 at a bank office. From the clients' viewpoint, this
financial channel encourages a helpful and viable way to deal with oversee individual financial
needs, as it facilitates consumers with 24*7 online financial services where from any area money
can easily be transferred to any other bank account, making payments directly through scanning
QR code and so on without visiting a bank office. However, security related concerns of clients
that uses online banking also raised and the reason behind this was continuous rise in utilisation
of technology because of COVID-19, which also upraised cybercrimes in United Kingdom.
1. Research Aim
The main research aim, that has been formulated is “To explore recognition in relation
to the area of auto. banking and its impact on cust. behaviour. A case study on online banking
sector of United Kingdom.”
2. Research Objectives
To develop conceptual framework regarding auto. banking.
To analyse the significance of auto. tech. in encouraging development of banking sector.
To determine the impact of auto. banking over embracing the consumer's behaviour
within United Kingdom.
To contemplate the challenges faced by banking sector of United kingdom while
adopting auto. technology.
concerns because continuous use of e-banking (auto. banking) may lead an individual to become
a prey to cybercrime.
Background of the research:
Auto. banking services is considered to be an elective conveyance channel, which has
been adopted by most of the banks of United Kingdom. Basically, banks try to bring down
working expenses by decreasing their branch systems and scaling back the quantity of
administration staff, improve their financial administrations and consumer loyalty and hold their
current clients. auto. banking is considered as the least expensive dissemination channel for
normalized bank tasks. As per Stentoft and Rajkumar, (2020), average payment transaction from
online banking facilities specifically costs £0.0080 (Pound Sterling) as contrasted and £0.016 for
a Personal Computer banking administration, £0.022 for an Automated Teller Machine, £0.43 for
a phone banking administration and £0.86 at a bank office. From the clients' viewpoint, this
financial channel encourages a helpful and viable way to deal with oversee individual financial
needs, as it facilitates consumers with 24*7 online financial services where from any area money
can easily be transferred to any other bank account, making payments directly through scanning
QR code and so on without visiting a bank office. However, security related concerns of clients
that uses online banking also raised and the reason behind this was continuous rise in utilisation
of technology because of COVID-19, which also upraised cybercrimes in United Kingdom.
1. Research Aim
The main research aim, that has been formulated is “To explore recognition in relation
to the area of auto. banking and its impact on cust. behaviour. A case study on online banking
sector of United Kingdom.”
2. Research Objectives
To develop conceptual framework regarding auto. banking.
To analyse the significance of auto. tech. in encouraging development of banking sector.
To determine the impact of auto. banking over embracing the consumer's behaviour
within United Kingdom.
To contemplate the challenges faced by banking sector of United kingdom while
adopting auto. technology.
To access the potential ways that can be opt by banking sector of United Kingdom to
facilitate effective services to the cust..
3. Research Questions
What is the conceptual framework of auto. banking?
What is the significance of auto. tech. in encouraging development of banking sector.
What is the impact of auto. banking over embracing the consumer's behaviour within
United Kingdom.
What are the challenges faced by banking sector of United kingdom while adopting auto.
technology.
What are the potential ways that can be opt by banking sector of United Kingdom to
facilitate effective services to the cust..
4. Motivation for study
The main motivation behind conducting investigation on the chosen topic i.e. To explore
recognition in relation to the area of auto. banking and its impact on cust. behaviour of online
banking sector of United Kingdom is that many researches has been performed or developed on
how auto. banking impacted on consumer behaviour but not most of them did performed detailed
analysis and resulted less favourable outcomes. Including this, customers belonging to United
Kingdom's banking sector has started raising questions in relation with security, whether their
money is safe or not. Specifically, it has been found that pandemic COVID-19 has brought many
issues along with positive aspects as well. It has helped clients holding accounts in different
banks of United Kingdom to easily perform transactions, purchase products and services and also
to easily transfer money as well. This is considered to be the reason behind performing
investigation on the same topic, which will help in analysing the different perspectives of
scholars in relation to consumers behaviour towards auto. banking services. Also, it will enhance
the understanding of both neg. and posi. aspects of utilising auto. banking services offered by
United Kingdom's banks and their impact on consumer behaviour.
5. Research Rationale
The vital reason behind propounding this investigation is to accumulate information on
how consumer behaviour changed or impacted when auto. banking services took place. Full
utilisation of auto. banking services has given ample number of opportunities to account holders
facilitate effective services to the cust..
3. Research Questions
What is the conceptual framework of auto. banking?
What is the significance of auto. tech. in encouraging development of banking sector.
What is the impact of auto. banking over embracing the consumer's behaviour within
United Kingdom.
What are the challenges faced by banking sector of United kingdom while adopting auto.
technology.
What are the potential ways that can be opt by banking sector of United Kingdom to
facilitate effective services to the cust..
4. Motivation for study
The main motivation behind conducting investigation on the chosen topic i.e. To explore
recognition in relation to the area of auto. banking and its impact on cust. behaviour of online
banking sector of United Kingdom is that many researches has been performed or developed on
how auto. banking impacted on consumer behaviour but not most of them did performed detailed
analysis and resulted less favourable outcomes. Including this, customers belonging to United
Kingdom's banking sector has started raising questions in relation with security, whether their
money is safe or not. Specifically, it has been found that pandemic COVID-19 has brought many
issues along with positive aspects as well. It has helped clients holding accounts in different
banks of United Kingdom to easily perform transactions, purchase products and services and also
to easily transfer money as well. This is considered to be the reason behind performing
investigation on the same topic, which will help in analysing the different perspectives of
scholars in relation to consumers behaviour towards auto. banking services. Also, it will enhance
the understanding of both neg. and posi. aspects of utilising auto. banking services offered by
United Kingdom's banks and their impact on consumer behaviour.
5. Research Rationale
The vital reason behind propounding this investigation is to accumulate information on
how consumer behaviour changed or impacted when auto. banking services took place. Full
utilisation of auto. banking services has given ample number of opportunities to account holders
of different banks like Bank of England and so on. Including this, it has also been analysed that
factors along with the interactions between clients and banks with the help of internet impacted
cust.' behaviour. Another reason behind conducting investigation on this topic is that, many
investigations were performed on factors that influenced non users of online banking services
offered by different banks but, at present there are very less number of investigations performed
on how internet banking impacts upon cust.' behaviour. Including this, users of auto. banking
services tends to be or considered to be uniform group of population, which might have led to a
generalisation of some factors that were not accurate and appropriate to collect information in
relation to how cust.' behaviour gets affected due to auto. banking services. Another reason
behind conducting the investigation on the chosen topic was directly linking with security
concerns of individuals while using automatised banking (change in behaviour). Therefore,
concerns in relation with security is something that requires proper attention and this is why
particular dissertation will be focusing on rise of security based concerns of clients that took
place because of Outbreak of Corona Virus like rise in cases of cybercrime and so on.
6. Research Scope
While focusing on researcher's perspective the main scope of present investigating report
where the topic opted is “To explore recognition in relation to the area of auto. banking and its
impact on cust. behaviour of UK's online banking sector.”, is that it will help in enhancing the
knowledge area, which can be used in both personal and professional life in near future. On the
other side, considering the org. or industrial perspective the scope of this investigation is that
same sort of study can effectively be performed in future. Also, it can be said that other type of
investigation can also be performed in rightful manner, which will help readers along with the
public to take right decisions in specified time frame.
7. Brief research methodology
In present investigation, the researcher will be performing quantitative research on the
topic i.e. To explore recognition in relation to the area of auto. banking and its impact on cust.
behaviour of United Kingdom's online banking sector. On the other hand, questionnaire will be
formulated that will help researcher in collecting data in relation with automatised banking and
change that took place in the behaviour of individuals while using e-banking.
factors along with the interactions between clients and banks with the help of internet impacted
cust.' behaviour. Another reason behind conducting investigation on this topic is that, many
investigations were performed on factors that influenced non users of online banking services
offered by different banks but, at present there are very less number of investigations performed
on how internet banking impacts upon cust.' behaviour. Including this, users of auto. banking
services tends to be or considered to be uniform group of population, which might have led to a
generalisation of some factors that were not accurate and appropriate to collect information in
relation to how cust.' behaviour gets affected due to auto. banking services. Another reason
behind conducting the investigation on the chosen topic was directly linking with security
concerns of individuals while using automatised banking (change in behaviour). Therefore,
concerns in relation with security is something that requires proper attention and this is why
particular dissertation will be focusing on rise of security based concerns of clients that took
place because of Outbreak of Corona Virus like rise in cases of cybercrime and so on.
6. Research Scope
While focusing on researcher's perspective the main scope of present investigating report
where the topic opted is “To explore recognition in relation to the area of auto. banking and its
impact on cust. behaviour of UK's online banking sector.”, is that it will help in enhancing the
knowledge area, which can be used in both personal and professional life in near future. On the
other side, considering the org. or industrial perspective the scope of this investigation is that
same sort of study can effectively be performed in future. Also, it can be said that other type of
investigation can also be performed in rightful manner, which will help readers along with the
public to take right decisions in specified time frame.
7. Brief research methodology
In present investigation, the researcher will be performing quantitative research on the
topic i.e. To explore recognition in relation to the area of auto. banking and its impact on cust.
behaviour of United Kingdom's online banking sector. On the other hand, questionnaire will be
formulated that will help researcher in collecting data in relation with automatised banking and
change that took place in the behaviour of individuals while using e-banking.
8. Chapter Conclusion
Considering the above mentioned information, this chapter specifically concludes that
online banking sector has brought ample number of benefits and challenges for their clients as
well. Away with this, scope of this investigating topic will be delivering information in relation
with how security concerns of loosing personal information or becoming a victim of cybercrime
may majorly takes place because of rapid increase in use of online banking services offered by
banks of United Kingdom in the mean time of COVID-19.
Chapter 2: Literature Review
Conceptual framework regarding auto. banking
According to Aroian, (2019) auto. banking specifically connects consumers from a bank
office and helps in performing different finance related banking services. In other words,
banking automation is said to be a crucial system, which helps in operating banking services and
processes with the help of highly automatic means (Flögel and Beckamp, 2020). This has helped
banking sector of United Kingdom and of the world to reduce the human intervention. Including
this, it has also been analysed that auto. banking services helps a bank in allowing centralized
cust. service that can easily helps finance executives of different banks to keep records of
consumers and it can also be said that different queries can also be resolved without asking client
to visit the bank office. If it is critically analysed then it can be said that automatised banking
sector has given high range of benefits to clients like they can perform transactions by just
clicking on their mobile phones, computer systems and so on however, there are many
disadvantages as well that came in front of using online banking. Some of the disadvantages
were linking to misconduct of many activities like they become victim of cybercrime, started
getting threat messages from hackers and so on.
Also, it can be said that with the help of easing record retrieval, there are a range tasks
that can easily be performed, which may also be taken as a crucial opportunity towards reducing
the human interventions (Tanda and Schena, 2019). This could be understood with a good
example of current situation, where Pandemic COVID-19 (Novel Corona Virus) brought a
breakdown situation and paused every single activity of the whole world. With the help of auto.
banking services offered by banks, account holders effectively become able to perform financial
transactions through online channels like official banking websites and applications as well by
Considering the above mentioned information, this chapter specifically concludes that
online banking sector has brought ample number of benefits and challenges for their clients as
well. Away with this, scope of this investigating topic will be delivering information in relation
with how security concerns of loosing personal information or becoming a victim of cybercrime
may majorly takes place because of rapid increase in use of online banking services offered by
banks of United Kingdom in the mean time of COVID-19.
Chapter 2: Literature Review
Conceptual framework regarding auto. banking
According to Aroian, (2019) auto. banking specifically connects consumers from a bank
office and helps in performing different finance related banking services. In other words,
banking automation is said to be a crucial system, which helps in operating banking services and
processes with the help of highly automatic means (Flögel and Beckamp, 2020). This has helped
banking sector of United Kingdom and of the world to reduce the human intervention. Including
this, it has also been analysed that auto. banking services helps a bank in allowing centralized
cust. service that can easily helps finance executives of different banks to keep records of
consumers and it can also be said that different queries can also be resolved without asking client
to visit the bank office. If it is critically analysed then it can be said that automatised banking
sector has given high range of benefits to clients like they can perform transactions by just
clicking on their mobile phones, computer systems and so on however, there are many
disadvantages as well that came in front of using online banking. Some of the disadvantages
were linking to misconduct of many activities like they become victim of cybercrime, started
getting threat messages from hackers and so on.
Also, it can be said that with the help of easing record retrieval, there are a range tasks
that can easily be performed, which may also be taken as a crucial opportunity towards reducing
the human interventions (Tanda and Schena, 2019). This could be understood with a good
example of current situation, where Pandemic COVID-19 (Novel Corona Virus) brought a
breakdown situation and paused every single activity of the whole world. With the help of auto.
banking services offered by banks, account holders effectively become able to perform financial
transactions through online channels like official banking websites and applications as well by
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