Analysis of Problems and Solutions in Modern Online Banking

This report delves into the problems and solutions associated with online banking, examining critical aspects such as security issues, the need for internet access, and customer service deficiencies. The research addresses these challenges, highlighting the devastating impact of security breaches and financial compromises on a global scale. The study poses several research questions to identify online banking systems, analyze their associated problems, and recommend solutions. The rationale emphasizes the importance of enhanced security protocols and the mitigation of risks like faulty securities and customer knowledge gaps. The report provides definitions of online banking, discussing its benefits, including transactional convenience, utility bill payments, and fund monitoring. It also explores the limitations of online banking, such as the need for internet access and the potential for security breaches. The report includes tables and charts to illustrate findings and concludes with recommendations for improving the online banking experience, enhancing security, and addressing customer concerns. The study aims to provide insights into the current state of online banking and propose effective strategies for its improvement.

Running Head: PROBLEMS AND SOLUTIONS OF ONLINE BANKING
INFORMATION SYSTEM- PROBLEMS AND SOLUTIONS OF ONLINE BANKING
Name of the Student
Name of the University

1PROBLEMS AND SOLUTIONS OF ONLINE BANKING
Acknowledgement
I have gathered a great knowledge and experience by conducting this research. Conduction of the
research has helped me to improve my knowledge regarding employee motivation as well as
employee retention. I have gained great help from my supervisors while conducting this research
and therefore, I would like to thank my supervisor .................................... for guiding me
throughout the research. I would also like to thank my friends and family members for
supporting me in this difficult phase. I would also like to thank the participants of data collection
process as without their participation I might not be able to complete this research with best
outcome.
Thanks and regards
Yours Sincerely

2PROBLEMS AND SOLUTIONS OF ONLINE BANKING
Abstract
The thesis research paper entitled "Web based Banking" is a mechanized broadcast
communications device that gives the clients of a budgetary foundation with access to money
related transactions in an open space without the requirement for a human assistant or bank
employee. On most modern ATMs, the client is recognized by embeddings a plastic ATM card
with an attractive striper a plastic smartcard with a chip that contains a special card number and
some security information, for example, a termination date or CVC (CVV). Security is given by
the customer entering an individual recognizable proof number (PIN). Now a day’s Online
banking systems has been gaining popularity. The way to deal with give a chance to the clients to
have some critical exchanges to be done from where they are at exhibit without moving to bank.
In this undertaking we will bargain the current realities in the bank i.e. the exchanges which
takes put amongst client and bank.
Chapter 1: Introduction........................................................................................................6
1.1. Problem statement........................................................................................................6
1.2. Research questions........................................................................................................6
1.3. Rationale.......................................................................................................................7
1.4. Definitions....................................................................................................................7
Chapter 2: Literature review................................................................................................9
2.1. Introduction...................................................................................................................9
2.2. Concepts of the study................................................................................................9

3PROBLEMS AND SOLUTIONS OF ONLINE BANKING
2.2.1. Online banking.......................................................................................................9
2.2.2. Benefits of online banking services.....................................................................10
2.2.3. Problems in online banking.................................................................................11
2.3. Conceptual Frameworks.............................................................................................12
2.3.1. Quality of services...............................................................................................12
2.3.2. Responsiveness....................................................................................................13
2.3.3. Privacy and security.............................................................................................13
2.3.4. Assurance.............................................................................................................14
2.3.5. Reliability............................................................................................................14
2.3.6. Customer retention...............................................................................................14
2.4. Summary.....................................................................................................................15
Chapter 3: Research Methodology....................................................................................16
3.1. Introduction.................................................................................................................16
3.2. Research Design.........................................................................................................16
3.3. Research Onion...........................................................................................................17
3.4. Research Approach.....................................................................................................18
3.5. Participants.................................................................................................................18
3.6. Instrumentation...........................................................................................................19
3.7. Procedure....................................................................................................................19
3.8. Data Processing and Analysis.....................................................................................19

4PROBLEMS AND SOLUTIONS OF ONLINE BANKING
3.8.1. Data Source: Primary and Secondary..................................................................20
3.8.2. Data technique: Qualitative and Quantitative......................................................20
3.9. Limitation of the Study...............................................................................................20
3.10. Chapter Summary.....................................................................................................21
Chapter 4: Results..............................................................................................................22
Chapter 5: Discussion........................................................................................................33
Chapter 6: Conclusion.......................................................................................................34
6.1. Conclusion of the thesis..............................................................................................34
References..........................................................................................................................35
List of Tables
Table 1: Login / Sign off are not easy...............................................................................23
Table 2: Lack of security in transactions..........................................................................24
Table 3: Lack of appropriate software...............................................................................25
Table 4: Not providing information...................................................................................26
Table 5: Not being able to maintain security.....................................................................27
Table 6: Not giving fast response.....................................................................................28
Table 7: Leaving the operation unfinished.......................................................................29
Table 8: Internet banking can be tampered with by others................................................30
Table 9: Waiting for long time for conducting of transactions.........................................31

5PROBLEMS AND SOLUTIONS OF ONLINE BANKING
Table 10: Too many steps in processing transaction.........................................................32
List of Charts
Chart 1: Login / Sign off are not easy................................................................................23
Chart 2: Lack of security in transactions...........................................................................24
Chart 3: Lack of appropriate software...............................................................................25
Chart 4: Not providing information...................................................................................26
Chart 5: Not being able to maintain security.....................................................................27
Chart 6: Not giving fast response......................................................................................28
Chart 7: Leaving the operation unfinished........................................................................29
Chart 8: Internet banking can be tampered with by others................................................30
Chart 9: Waiting for long time for conducting of transactions..........................................31
Chart 10: Too many steps in processing transaction.........................................................32

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Chapter 1: Introduction
1.1. Problem statement
This thesis discusses about the main problems associated with the online banking
methods that are being adopted by all the banks operating in the country. The various problems
in these aspects are the security issues, requirement for internet access and the faults in the
customer services. Although, the benefits of application of the online banking prospects in the
lives of the customers are life changing, the risks it poses are devastating to the lives of the
concerned people. Due to the use of online banking methods, many customers had their financial
aspects compromised leading to great devastating impacts on a global level. Thus, the
requirements for a solution to the problems in the online banking sectors are to be implemented
so that the use of their services can be continued without the presence of any concerns among the
banking sectors as well as the customers involved.
1.2. Research questions
This section of the thesis includes various research questions that are to be included for
the survey conduction:
 To identify the online banking systems
 To analyze the associated problems of the online banking prospects
 To identify and analyze the various problems associated with the users of the online
banking services
 To recommend various suggestions for the online banking systems

7PROBLEMS AND SOLUTIONS OF ONLINE BANKING
1.3. Rationale
The thesis mainly discusses about the problems and the solutions of the online banking
aspects. Due to the increased use of these aspects by the customers of all the banks, the security
protocols are to be enhanced (Pikkarainen et al., 2004). The various risks like the faulty
securities in the system and the lack of proper knowledge of the customers lead to various
devastations leading to grave financial depths for the user as well as the banking sector. This in
turn leads to the increase of problems faced by the banking sectors including the loss of business
due to which the loss of customer engagement on the online parameters is evident. This thesis
thus discusses about these problems in the online banking sectors and their various mitigation
solutions that are to be applied to address such problems.
1.4. Definitions
The online banking is used to provide the transactional benefits to the users by the
comfort of their home. This neglects the need of coming down to the bank for transactional
purposes (Pervaiz). The use of an internet connection and their identification is to be provided
for addressing such benefits.
The services provided to the users in these aspects include the transactional benefits as
well as the monitoring of the funds in their respective accounts. In addition, the provisions for
loans or any other benefits can also be addressed by these online aspects (Hole, Moen &
Tjostheim, 2006). Likewise, the users using such services can enjoy the advantages of paying
their utility bills along with the aforementioned benefits.

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Most banking services use a security protocol that is set by the standards of the
government. This helps to address the security related concerns of most of the users applying for
the online aspects of the banking solutions.

9PROBLEMS AND SOLUTIONS OF ONLINE BANKING
Chapter 2: Literature review
2.1. Introduction
The online prospects of the banking sector are used to provide transactional benefits to
the users from the comfort of their home. This neglects the need of coming down to the bank for
tending to their needs. The use of an internet connection and identification is the necessary items
required for addressing such benefits. Most banking services use a security protocol that is set by
the standards of the government. This helps to address the security related concerns of most of
the users applying for the online aspects of the banking solutions.
The services provided to the users in this aspect include the transactional benefits as well
as the monitoring of the funds in their respective accounts. In addition, the provisions for loans
or any other benefits can also be addressed by these online aspects. Likewise, the users using
such services can enjoy the advantages of paying their utility bills along with the aforementioned
benefits.
2.2. Concepts of the study
This section of the thesis is used to address the various discussions on the selected topics.
The problems of the online banking and the solutions to these problems are also discussed in this
section of the chapter.
2.2.1. Online banking
The basic definition of the online banking prospects is the acquisition of banking services
by the use of internet. Online banking is also termed as net banking or internet banking due to
the provisions of transactional benefits, utility bill payments and other services (Akturan &

10PROBLEMS AND SOLUTIONS OF ONLINE BANKING
Tezcan, 2012). These services do not require the user to visit the local branch every time they
use their services.
The online aspects of the banks help the user to use the transactional payment cards for
other services over the internet. This is done by providing the details in the secure web pages of
the bank. The bill payment is usually done in this way. The digital banks do not provide direct
ATM access, but allows the user to use these cards in ATMs of other banks (Dauda & Lee,
2015). The main operations of the online banking are done by the use of mobile or computer
devices. The mobile devices uses the mobile versions of the website or application made for the
android or IOS Smartphone. In the computer usage for access to the banking services,
authorization is usually done in the websites of the banking services.
The services provided to the users in these aspects include the transactional benefits as
well as the provisions for monitoring their funds present in their accounts. In addition, the
provisions for loans or any other benefits are addressed by these online aspects. Likewise, the
users using such services can enjoy the advantages of paying their utility bills along with the
aforementioned benefits (Hussain Chandio et al., 2013). Most banking services use a security
protocol that is set by the standards of the government. This helps to address the security related
concerns of most of the users applying for the online aspects of the banking solutions.
2.2.2. Benefits of online banking services
The services provided to the users in these aspects include the transactional benefits as
well as the provisions for monitoring their funds present in their accounts. In this case, the
convenience to the users is the main aim included in the process of online banking. The most
basic work included in the online banking services are the utility bill payments and the transfer

11PROBLEMS AND SOLUTIONS OF ONLINE BANKING
of funds between various accounts as initiated by the user (Maria Correia Loureiro, Rüdiger
Kaufmann & Rabino, 2014). The main advantages are the benefits of transactions that can be
pursued all the time throughout the week. This relieves the users to comply with the banking
time for transacting. As the accounts can be monitored by just connecting to the internet, the
early detection of fraudulent activities are made that helps in reducing the amount of theft in
these sectors. Moreover, these online banking services allow better rates in terms of interest for
the opening or closing of fixed or recurring deposits. In addition, most banking services use a
security protocol that is set by the standards of the government (Mohsin Butt & Aftab, 2013).
This helps to address the security related concerns of most of the users applying for the online
aspects of the banking solutions.
2.2.3. Problems in online banking
The main problems in the usage of the online banking services are the requirement of
internet access. In case of slow internet access, the transactional status may fail to display
leading to unease and disturbance in the peace of mind of the user requesting the transaction
(Agwu & Carter, 2014). In this case, the users may want problem solving solutions from the
executives of the banking services. This is the main problem that has to be addressed in the
customer policies of the services.
In addition, lack of knowledge may lead to grave faults in the accounts of the users
concerned. Unethical individuals are always on the look for such people and constantly send
emails or phishing links to access their accounts. Due to the lack of knowledge, the users may
click on the links that leads to breaches in their accounts (Chavan, 2013). This is the main cause
of problems in case of online banking where a majority of users does not have sufficient
knowledge to protect their assets.