The Impact of Internet Banking on Customer Satisfaction and Business

This research project investigates the impact of internet banking services on customer satisfaction and business performance, using Bank of Scotland as a case study. The study explores the importance of internet banking in facilitating business transactions, reviewing existing literature and outlining the research methodology. The objectives include determining the impact of internet banking on customer satisfaction and business performance, identifying factors limiting its use, and recommending improvements. The research employs a mixed-methods approach, incorporating both quantitative and qualitative data analysis to understand the effects of internet banking on customer experience and business outcomes, with a focus on the UK financial sector. The project also includes a Gantt chart for project management and addresses research questions related to the significance, impact, limitations, and improvement of internet banking services, providing insights for financial institutions seeking to enhance customer satisfaction and gain a competitive edge. The research also covers the background of the Bank of Scotland, its services, and the evolution of internet banking.

Research project

Table of Contents
CHAPTER 1: INTRODUCTION....................................................................................................1
1.1 Overview of the research......................................................................................................1
1.2 Significance of the research..................................................................................................1
1.3 Background of the research...................................................................................................2
1.4 Research aims and objectives ...............................................................................................2
1.5 Gantt Chart ...........................................................................................................................3
CHAPTER 2: LITERATURE REVIEW ........................................................................................3
2.2 Importance of internet banking in facilitating business transactions....................................3
CHAPTER 3: RESEARCH METHODOLOGY.............................................................................5
3.1 Type of investigation.............................................................................................................5

TITLE – To determine the impact of internet banking services on customer satisfaction level and
business performance. A case study on Bank of Scotland.
CHAPTER 1: INTRODUCTION
1.1 Overview of the research
Research project is a brief overview of specific area of concern so as to develop
knowledge on it. This research is going to be conducted in order to recognise the impact of
digital technologies, like – internet banking services on business performance by improving its
brand image. In this present scenario, technology has affected the life of individuals as it makes
easier the process of completing day to day activities. Expansion of digital technology has
imbibed lives of people and introduce them various changes over the world in economic and
business atmosphere. In banking sector, technological developments are liable for speed up
communication with customers as well as transactions. In simple words, it makes easier the
process of transferring cash from one account to another. Apart from this, the first part of
research consists with a conceptual analysis and historical review of internet banking and
elements which can affect the same. In second chapter, literature has reviewed in theoretical
form so as to fulfil the gap between problem statement and desired outcomes. A research
methodology will be conducted so as to prepare a hypothesis by considering data collection
techniques, reliability, limitations and validity of the study. Data analysis will be done through
information that is gathered through people who use online banking. Then, different findings will
be given which can perceptual the gap between public and private sector banks and various
managerial implications.
1.2 Significance of the research
Due to the rapid growth of Internet banking in past decades is a clear indicant of
consumer acceptance of this media. However, the impact of Internet Banking on customer
satisfaction and loyalty in UK is yet to be established as few studies have addressed this issue.
The present research is conducted to determine that how internet banking affects customers'
satisfaction level and improves business performance. Due to technological advancements,
business environment of financial sector is totally change and experience rapid changes in
demands of customers. Evolution of ATM machines leads internet banking; the concept is
widely used in all economies so as to enhance quality of services. In UK, many banks are
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providing internet banking services to their target audiences so as to enhance customer
experience and gain high competitive edge. Following are the main significance of the study-
 Outcomes or findings of the study will be useful for management of financial sectors of
UK as identifying the impact of internet banking services on business performance.
 The study will also serve a resource base for other researchers who have an interest in
carrying out another research on the same topic, if applied then topic will be extend and
provide new explanation.
1.3 Background of the research
The study is based upon implementation of new technologies, i.e. internet banking on
increases business performance. It will cover all aspects which have a vast impact on internet
banking services by carrying examination of its hindrance on obtaining customer satisfaction
level. For completion of the study, Bank of Scotland Plc is the chosen organisation; its a
commercial and clearing financial institute which is located in UK. It was the first bank which
introduces its own printed bank notes and still printing under legal arrangements. Bank of
Scotland is a subsidiary of Lloyds Banking Group since 19 January 2009, when HBOS was
acquired by Lloyds TSB. There are over 20000 employees are currently working with it and
expand worldwide to provide effective financial services to people. The organisation also
involves itself in providing Internet Banking services which comprises future, dated and
recurring bill payments and funds transfers. Firm also provides other facilities through net
banking like - loan application, e-trade, fund management, customisation of account names,
ability to export banking transactions to popular financial management software packages such
as Microsoft Money or Intuit Quicken.
1.4 Research aims and objectives
Research aim - To determine the impact of internet banking services on customer satisfaction
level and business performance. A case study on Bank of Scotland.
Research objectives – Some of main research objectives are stated as under: -
To determine the importance of internet banking services in banking transactions.
To ascertain the impact of internet banking services on customer satisfaction and business
performance level.
To find out the factors which can limiting the use of internet banking for Europeans.
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Recommend ways through which Bank of Scotland can improves the quality of services and gain
high competitive edge.
Research questions: -
Q1. What is significance of internet banking for a financial sector?
Q2. How internet banking services can affect customers' satisfaction level and business
performance?
Q3. What are the factors which can limiting the use of internet banking?
Q4. Justify the ways of improving quality of services.
1.5 Gantt Chart
CHAPTER 2: LITERATURE REVIEW
This part of research is a theoretical framework which describes viewpoints of various
authors who have made study on same topic so as to get relevant information and arrive at better
conclusion. In this paper, there is presented a review of literature on internet banking and the
factors that may impact internet banking and customer satisfaction and loyalty.
2.2 Importance of internet banking in facilitating business transactions
The term internet banking is defined as utilising internet and telecommunication network
in order to provide effective banking services to target audiences. By using this, customers can
inquire necessary information, such as – account balance inquiry, bill payment, fund transfers to
other accounts by a single click at home. In past decades, internet banking is used for current and
credit card accounts but as per the time passes it is acquired for making investments and
insurance. In this modern era, almost all financial sectors are offering online banking services by
having a special care, i.e. security, privacy as well as confidentiality of information to
consumers. Security protection involves organisation’s security policies, unauthorised intrusion
detector, secure server rooms and related Internet security technologies which makes easier the
process of money transactions. Bank of Scotland provides many online services to customers,
i.e. account aggregation services which allow people to manage various accounts from different
financial institutions with a single login. There are many online financial services of Bank of
Scotland are - Current account, insurance-based, Credit-based and Investment-based services. In
order to obtain maximum cutting edge, mostly European banks provide interactive, extensive
and sophisticated Internet Banking services in order to deliver convenience to customers while
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making commercial and personal transactions. Therefore it can be said that, internet banking
provides numerous benefits to customers as it is low costs transactions in comparison with
human teller services. Advantages of internet banking are -
 Banks can decreases customer service staff because people already get customer services
via online.
 Less cheque processing costs cause of raising electronic payments.
 Paper costs and mail distribution will be reduced because people would get their bank
statements and disclosers via internet and mobile apps.
 Reduction of data entry as people will do all processes by using internet banking.
 It also helps in increasing bank revenues, wider market reach and new market
opportunities.
Impact of internet banking services on customer satisfaction and business performance level
Satisfaction is entire demeanour of customers towards a business organization or service
provider, or its an enthusiastic response to the distinction between what clients foresee and what
they get, with respect to the satisfaction of some need, objective or want. Customer satisfaction
level implies clients have a specific anticipated item execution as a top priority preceding
utilization. Amid utilization, clients encounter the item execution and contrast it with their
normal item execution level. Today, a few budgetary foundations are attempting to stress
customer– satisfaction management, For this purpose, it is significant to execute new managing
an account benefits so as to create and keep better associations with clients. Subsequently
developing focused transcendence nearly relies upon clients' fulfilment with keeping money
benefit. Therefore, business organisations are required to deliver effective and imperative
customer services so as to satisfy them in the best possible manner. It is perceived that banks
increasing higher consumer loyalty will have an obvious showcasing domination on the grounds
that the higher consumer loyalty is related with more noteworthy incomes, expanded
strategically pitch apportions, higher client maintenance and greater piece of the pie. The term E-
banking an account can offer speedier, faster and a tried and true support of the clients for which
they might be moderately fulfilled than that of manual arrangement of saving money. Online
banking an account framework not just produces most recent practical return, it can show signs
of improvement dealings with client.
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….......... reported a significant correlation between efficiency and online banking quality.
Downloading speeds and response time, in consumers’ perception, are two crucial facts of online
banking efficiency. Downloading speed depends on the nature of the website from which
information is downloaded, the computing hardware and method of connection used to download
information.
CHAPTER 3: RESEARCH METHODOLOGY
It is an important part of project which which require to consider as well as understand in
define a course of way while conducting a study in an effective way. Methods are such
techniques and tools which support and enables in conducting of research study effectively and
proper goals can be achieved by satisfying each aims and objectives appropriately. Hence, before
working on study, proper as well as suitable techniques and tools to determine and access which
enable in facilitating good results.
3.1 Type of investigation
In this research project., best approach and method require to underpin as well assess for
concerning of study effectively which is linked with quantitative as well as qualitative.
In the research of quantitative, experts accumulate data of figures along with numerical
terms and it breakdown of these type of data measure techniques along with recipe are used by
experts. This help experts in make legitimate as well as important determination. Devices of
research i.e. perception and review along with that overview of collecting data and information.
In this subjective event of research techniques, experts dissect the components that provide detail
information about the theme of research. Exbibit of research depends on this research which aid
in reach of legitimate interferences.
 Research philosophies: It proclaim like as consideration as well as aspects by which
study of data can be utilized, determine and evaluate effectively so that effective
hypothesis get created so that proper indicative about report can accomplished in a
effective way or frame. Their is two type of philosophies of research get interpret are
interpretative and positivism which involve in project in an proper way. Research of
positivism, give proper result within nature which help in making effective conclusion
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by statistical data. Research of interpretivism, define and enable different consideration
effectively on the base of various courses of diverse options.
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Research Proposal Form
Student Name: ______________________ Student ID:
______________________
Centre Name: _____________________
Tutor: ________________ Date:
___________________
Unit: ____________________
Proposed Title: ______________________________________________
Section One: Title, objective, responsibilities
 Title or working title of the research
project (in the form of a question,
objective or hypothesis) To determine the
impact of internet banking services on
customer satisfaction level and business
performance.
 Research objectives (e.g what is the
question you want to answer? What do
you want to learn how to do? What do
you want to find out?):
 To determine the importance of internet
banking services in banking transactions.
 To ascertain the impact of internet banking
services on customer satisfaction and
business performance level.
 To find out the factors which can limiting the
use of internet banking for Europeans.
 Recommend ways through which Bank of
Scotland can improves the quality of
services and gain high competitive edge.
Section Two: Reasons for choosing this
research project
Reasons for choosing the project (e.g links
to other subjects you are studying, personal
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interest, future plans, knowledge/skills you
want to improve, why the topic is important):
One of the main reason to choose this
research topic is due to increase use of
internet by various enterprises for complete
their various tasks.
To analyse the profitability related with use
internet channels.
Section Three: Literature sources searched
Use of key literature sources to support your
research question, objective or hypothesis:
Hennig‐Thurau, T. and Klee, A., 2017. The impact of customer
satisfaction and relationship quality on customer
retention: A critical reassessment and model
development. Psychology & marketing. 14(8).
pp.737-764.
Sathye, M., 2015. Adoption of Internet banking by Australian
consumers: an empirical investigation.International
Journal of bank marketing. 17(7). pp.324-334.
Section Four: Activities and timescales
Activities to be carried out during the research project (e.g
research, development and analysis of ideas, writing, data
collection, numerical analysis, tutor meetings, production of final
outcome, evaluation, writing the report):
How long this will
take:
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Milestone one: _________________
Target date (set by tutor): ____________________
Milestone two: _______________________
Target date (set by tutor):
______________________
Section Five: Research approach and
methodologies
What type of research approach and
methodologies are you likely to use and why?
Inductive approach and qualitative research
methodology
What your areas of research will cover:
Comments and agreement from tutor
Comments (optional):
I confirm that the project is not work which
has been or will be submitted for another
qualification and is appropriate.
Agreed: ________________ (name)_______________
Date ______________
Comments and agreement form project
proposal checker( IV sampling)
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Comments (Optional):
I confirm that the project is appropriate.
Agreed /Disagree: (Name of
the IV)
Date
Research Ethics approval form
All students conducting research activity that involves human participants
or the use of data collected form human participants are required to gain
ethical approval before commencing their research. Please answer all
relevant questions and note that your form may be returned if incomplete.
For further support and guidance please see your respective Unit Tutor:
Before completing this form, we advise that you discuss your proposed
research fully with your unit tutor. Please complete this form in good time
before your research project is due to commence.
Section 1: Basic details:
Project title: To determine the impact of internet banking services on customer satisfaction
level and business performance.
Student name:
Student ID number:
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Programme:
College Name:
Intended research start date:
Intended research end date:
Section 2 Project summary
Please select all research methods that you plan to use as a part of your project:
 Interviews Yes
 Questionnaires Yes
 Observations No
 Use of personal records No
 Data Analysis Yes
 Action Research Yes
 Focus Groups No
 Others (Please specify) :
Section 3: Participants
Please answer the following questions, giving full details where necessary.
Will your research involve human participants?
Who are the participants? Tick all that apply:
Adults:
How will participants be recruited (identified an approached)?
Approached
Describe the processes you will use to inform participants about what you are doing:
With help of face to face interaction
How will you obtain consent from participants? Will this be written? How will it be made clear to
participants that they may withdraw consent to participate at any time?
Studies involving questionnaires: will participants be given the option of omitting questions that
do not wish to answer?
Yes
If no please explain why below and ensure that you cover any ethical issues arising from this
Studies involving observation: Confirm whether participants will be asked for their informed
consent to be observed.
Yes
Will you debrief participants at the end of their participation (i.e give them a brief explanation of
the study)?
Yes
Will participants be given information about the findings of your study?(This could be a brief
summary of your findings in general)
Yes
Section 4: Data Storage and Security
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Confirm that all personal data will be stored and processed in compliance with the Data
Protection Act (1998)
Yes
Who will have access to the data and personal information?
During the research:
Where will the data be stored?
Will mobile devices such as USB storage and laptops be used
No
If Yes, please provide further details:
After the research:
Where will the data be stored?
How long will the data and records be kept for and in what format?
Will data be kept for use by other researchers?
Yes No
Section 5 : Ethical Issues
Are there any particular features of your proposed work, which may raise ethical concerns? If so,
please outline how you will deal with these:
It is important that you demonstrate your awareness of potential risks that may arise because of
your research. Please consider/address all issues that may apply. Ethical concerns may include,
but are not limited to the following :
 Informed consent.

 Sensitive topics
 Risk to participants and /or researchers
 Confidentiality/anonymity
 Disclosures/ limits to confidentiality
 Data storage and security, both during and after the research (including transfer, sharing,
encryption, protection).
 Reporting
 Dissemination and use of your findings.
Section 6: Declaration
I have read, understood and will abide by the institution’s Research and Ethics Policy:
Yes No
I have discussed the ethical issues relating to my research with my Unit Tutor:
Yes No
I confirm that to the best of my knowledge:
The above information is correct, and this is a full description of the ethical issues that
may arise in the course of my research
Name: Date:
Please submit your completed form to the Cohort Leader and a copy to your supervisor
only
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